4 Basic Money Management Tips — The Kind Tips - Tips for Life, Study, Work and Entertainment

4 Basic Money Management Tips

4 Basic Money Management Tips

You can find all kinds of money management tips on line but sometimes it may be difficult to determine which one works best according to your financial situation. You can review each one of them and also the sources and pick up one to implement at a time. Try to give it several month to see if you are beneficial from it and then decide to continue of try next one. Here we list four money management tips that are most commonly seen.

1. Set up family budget.

The first step of sound money management is creating a realistic budget for your family. Review your monthly expenses and create categories for all the spending. Keep your bills and receipts and put the number of each expenditure into its category and finalize the total amount in each category. Then, create goals for reducing some of the categories like entertainment and dining out. Also, for categories such as debt payment or savings, you should work out certain goals to increase.

2. Pay bills in time.

Paying bills in time is the simplest suggestion of good money management, which not only helps save your late fee charges, but also maintain you at a high credit score. However, paying in time may be struggling for some of you, so you can create automatic monthly draft of the checking account monthly to avoid late payments.

3. Save money daily.

Saving money day to day can finally yield substantial total amount eventually, but you should find out the reasonable approaches first. Some recommendations include packing your own lunch, shopping around for lower insurance rate and services, using coupons and going for sales, etc. Additionally, call your credit card companies and request for reductions of the interest rates.

4. Maintain an emergency fund.

An emergency fund, which equals three to six months of living expenses, should be maintained. Set up a timeline and put a small amount of money into the emergency fund until it is built. When you have unexpected bills, don’t go for credit cards but rely on the emergency fund. Please remember, if you have spent the emergency fund, please replenish it when you have the next paycheck.
*Image source: http://money-managementtips.blogspot.com/2013/02/teaching-kids-about-money-management.html

 

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