If you want to be able to build a pile of money in your bank account, then you need to know how to manage your finances.
When you ask most people about what they are having issues with, financial management and money problems come up again and again. Some people don’t have major issues with money, but some financial management guidance could benefit almost anyone… even though some people could use more help than others.
If you keep finding issues with your money, you could probably benefit from the help of a life or business coach who can teach you money management tips and strategies. You could probably also benefit from a few basic financial management tips like these to get you started being smarter with your money.
1.) GO OVER YOUR FINANCES
The best financial management tip I can offer is to suggest that you actually go over your finances. Folks who have the most issues with money often avoid looking at their finances. The first thing you need to do as you get your finances under control is to take an objective look at your money by creating lists of all of your income and expenses, even the smallest amounts. Knowing how much you make and how much you spend allows you to go on to make a budget and set savings goals. [How to set goals]
2.) KEEP A BUDGET
This is another of the most basic of money management tips, and it keeps coming up time and time again for good reason: it works. Keeping a budget lets you see how much money is going in and going out, and it reveals for you what you need to adjust to meet your financial goals or to simply make ends meet. Using the financial data you have compiled, you need to create a budget first and then you have to stick to it. You can, of course, adjust your budget as your expenses and income change.
3.) PAY YOURSELF FIRST
You need to put aside savings. It is tempting to spend your whole paycheck to take care of bills and get items that you feel that you need, but you should set a savings goal [save money to secure your future] and stick to it. You should ideally have the money for several months’ expenditures, and if you don’t you should start accumulating this money today. Put away at least 10% of your paycheck first and foremost, paying yourself first before you pay more toward bills or buy things you have your eye on. Paying into your savings should be part of your budget.
CONCLUSION
These money management tips are only the first steps toward financial management. Once you know what your financial picture is, have established a budget, and have started to save, there are many more actions you should take to get your finances under control. Learning to use credit responsibly, avoiding impulse purchases, creating a retirement account, and starting an investment account are all further steps toward better financial control. Following tips like these and working with a coach to learn further strategies for working with finances can help to turn you into a money maven, keeping your finances from ever being an issue again.
COMMENTS
Andrew Irons
April 14, 2013Point number one is brilliant. There is no denying that when you keep track of your finances, you can curb your spending. You will be surprised at the number of nonsensical purchases you can make! Another tip my wife and I implement is to set a budget every time we go grocery shopping and to not exceed it. Any leftover we have goes to Mr. Savings!
Howard jr
May 15, 2013Andrew, I like your term "mr.savings". I should use that when I'm educating my kids on the importance of saving and spending without their budget.
I think that keeping and goin through all your receipts at the end of the day is a great way to organize your finances. My wife and I keep a simple log book where we list down all our spending. We go through it at the end of the month and discuss what we can afford to cut back on. I'm not gonna lie- it takes discipline to log in your spending consistently but it's a great way to track everything.