How To Manage Your Money

 
How To Manage Your Money

Getting caught up in the continuous cycle of spending can be frustrating at times because in a blink of an eye all the money you were proud of earning has suddenly disappeared into thin air. Having your expenses override your earnings can leave you with little to no savings and sometimes debt. To avoid this and take control of your finances, you have to learn to manage money and here are five useful tips to get you started.

 

1)Commit To Clearing Your Debts

If you have an outstanding loan or debts unpaid, one way to manage your money is to ensure you pay them off as soon as you can to avoid future problems. This allows you to be able to focus on your other financial goals. So, if you have an unpaid debts, make it a priority to clear them off before anything else.


Check out 5 tips to help you pay back loans


On the other hand, if you don’t have an outstanding debt, try not to get yourself in one. Also try to limit or totally eliminate the urge to pay for your purchases with a credit card because if you are a bad spender then you should identify credit cards as one of your worst enemies.

 

 

2)Build A Saving Habit And Set A Savings Goal 

Savings can be made towards anything, either as an emergency plan, long term or short term use, towards retirement etc. For whatever reason you choose to save, you should make it an habit and stick to it. The principle will be to save before you spend. There are now options of automatic savings from many of our banks and other financial institutions, this way, the money can be transferred automatically from your account to your savings directly whether you remember or not.

While saving, it is also important to set a savings goal. For example, your goal can be to save N250,000 in 6 months. With an end goal in mind, you will be more intentional about the savings and be motivated to works towards it.

 

 

3) Create A Realistic Budget 

According to your earnings and spending habits, create a budget that you can keep. To keep your budget more realistic and easy to work with, you don’t have to be overly strict with your budget at your discomfort as money management doesn’t equate self punishment. Cut out only unnecessary expenses from your budget and stay disciplined to follow your budget till the end while spending. There’s no template for budget as our lifestyles differ, so you should endeavor to create only what works for you. Apart from managing your money, creating a budget also help you build other better habits like cutting out junks food and so on.

 

 4) Cut Down On Unnecessary Recurring Expenses

This is the point where you need to unsubscribe from services you never use or aren’t necessarily important. Examples are subscriptions to mobile applications you don’t use regularly, cancel gym memberships you obviously know you don’t have time for and so on. Cutting out these unnecessary charges and subscriptions will help you hold on to much money and leaving you with more to save. 

 

 

 

5)Commit To Acquiring In-depth Knowledge On Money Management 

Another way to immerse yourself into the act of money management is actually knowing how to managing money which is why I believe you are reading this article. However, you can effectively manage your money more by becoming an expert in money management. You can take online courses on money management, read books on money or even join an online money management community like the Money Africa and others. Doing any of these, let you in on anything you need to know about money and the benefits will go beyond just managing your money but also acquiring wealth.

 

Managing your money effectively contributes greatly to your journey to acquiring wealth and building a profitable financial portfolio. It is a process that requires a lot of discipline, so you can get an accountability partner if necessary to keep you on track. In conclusion, track your spending, limit impulse buying and live according to your means and lifestyle.

 

 

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