9 Useful Money Management Tips — The Kind Tips - Tips for Life, Study, Work and Entertainment

9 Useful Money Management Tips

9 Useful Money Management Tips

If not managed properly, financial problems can easily surface and the best way to avoid such financial problems is to learn to make a budget and monitor the spending. Learning how to manage your money can effectively prevent you from getting stuck in financial distress in the future. Here are some simple but useful tips for you for better money management.

1. Record all the expenses.

Before you manage your money, you should learn how much you have and how much you spend. Please record all the expenses on a spreadsheet or a paper, categorizing the expenses in areas like mortgage, auto payment, utility bill, entertainment, grocery, kids and miscellaneous purchases. By doing this, you can keep track of the expenditures under each category and develop a good budget plan.

2. Review the expenses each month.

Just recording the expenses is not enough, and you should review them each month, too. Once the expenses are close or even excess than the monthly income, then you should really take some time to find ways of reducing the spending. Try to dine out less, shop for cheaper alternatives, or send your kids to less expensive activities. A classic rule is, if you can’t pay in cash, then you can’t afford it.

3. Put aside money for savings.

Financial professionals suggest that you need to put aside at least 10 percent of your monthly income into saving account. If you can’t save too much, you should understand that even small changes add up to large difference, so start to save 100 or so per month.

4. Just buy things in need.

Don’t be tempted by the stuffs that you don’t quite need. You should only buy things that you need, but not what you want or what you can’t afford.

5. Review the bank and credit card statement.

Most of us only care about the number of balance in our bank or credit card account; however you should also keep an eye for the statements. Sometimes the credit card companies or banks commit mistakes that cost your money and you should make it a habit to review and check the statement every now and then.

6. Strive to own a house.

Although owning a house is a huge investment and you have to pay for the mortgage in a long run, it is your own investment while renting a house seems to be someone else’s.

7. Try use less of credit cards.

Avoid using credit card too often and try to use them on your major purchases as sparingly as possible. Also, change to a credit card company that comes with low interest rate. If you just pay the minimum due amount but not the full amount, you will have to pay extra interests.

8. No shortcuts.

You should absolutely get away from any shortcuts to wealth like gambling or getting rich quickly schemes. You will have far larger chance of losing your money and getting extremely frustrated than success.

9. Seek advice from financial professionals.

If you have any questions related with financial issues, please don’t hesitate to seek advice from a financial adviser, who can look at your situation and help you plan your investments.

*Image source: http://www.dailyfinance.com/2013/07/11/money-management-tips-millennials-new-jobs/

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