Managing money can be easier said than done, but by starting small and making little changes, over time it will add up and you will see a difference! The key is to be conscious of where your money is going and always think twice before you spend it. These tips will help you do so!
HOW TO MANAGE YOUR MONEY
Create a Budget
This is where it all starts. To manage your money, create a budget. Write everything down, from your income, to your monthly fixed expenses (rent, mortgage, utilities, credit card bills, car note, loans, etc), flexible expenses (aka where you really want to spend your money: food, clothes, bars, *cough* new hand bags *cough*), expenses you hate (aka: taxes, insurance, etc that may be due semi annually, quarterly, etc), and everything else.
As we all know but don’t like to hear, needs come before wants and your expenses should be less than your income.
Don’t Use Credit Cards as a Cushion
It’s tempting to purchase something on your credit card when you may not be able to afford it in cash at the moment and tell yourself you’ll pay it off as soon as you get paid. Here’s the thing with that. If you can’t afford it now, you might not be able to later.
Unforeseen expenses always come up, like expensive car repairs, etc, and before you know it, that money you thought you would have in a few weeks is already gone and now your credit card still hasn’t been paid.
A rule of thumb to follow is if you can’t afford it now, do you really need it? If it’s an emergency situation, then maybe yes, but if you just want a new puffer vest and Bean boots, I’m sure the ones already sitting in your closet will do just fine.
Cut Out Extra Expenses
Once you sit down and see how much money you are spending every month, it’s easy to see if it’s worth it. One of the easiest ways to cut down is by starting with your cable bill. Getting rid of premium movie channels and DVR service can save a lot more than we think!
Save on Entertainment
Groupon and other savings apps are a game changer in this category! You can always find half off restaurant deals, vacations, and entertainment and by taking advantage of this, your entertainment expenses are cut in half while you still enjoy doing the same things you like to do.
Stop Spending Foolishly
The key here is to stop spending compulsively! This for me usually happens when I walk into a store without a mission. If I go to the grocery without a list, I’ll walk out with twice as much food than what I really need. If I go with a list, I know exactly how much I’ll spend and never go over. It’s always a good idea to make a list and stick to it!
Make Your Money Work For You
Investing in hands down one of the best things you can do with your money. My personal favorite? Rental property! You can gain equity while someone else pays the mortgage (rental income). Win win!
Bogdan Sebastyan says
i spend all my money on this day on gifts!
RICHARD HICKS says
Great tips. SHould be taught in public schools!
Anna says
What do you think it means to be a southerner?
The Jessa Olson Blog says
These are all great tips. We have created a budget but now we need to implement it more than what we have been.