No matter how well we’re doing financially, let’s face it, we all need money management tips, because it can be so easy to lose your focus and throw money away on things that we don’t really need. In fact, that is the main problem with people and money spending: buying things that we think we need, but then turn out they are completely and utterly useless. We need to learn to make the difference between need and want, we need to know when to treat ourselves and when to tighten the belt. Easier said than done, right? Well, that’s why we’re here, to give you a few money management tips – take from them what you what, but know that they can only help you!
10. It’s the Small Things That Help Save Money
My aunt is a great cook – her kitchen is her palace and she is the queen, but she’s awful when it comes to spending money wisely on kitchen appliances. How many egg beaters does one man need? Well, she obviously thinks the answer is 4! Don’t replace things around the house that are still working and are still nice, just because something slightly better comes along. Same goes for phones!
9. Think Twice Before You Buy
Think in advance for a little bit. So, you’re in front of a shopping window and you’ve spotted the most amazing scarf. You love it to death and want to have it at that very moment. Here is where you should pause for a few seconds and think in advance to the next week – when do you see yourself wearing it? Do you need it? Or will it just lie in a drawer looking pretty and expensive?
8. Follow a Budget
It’s good to make a list of all your monthly expenses – it can help you to accurately know how much you’re saving – and besides, you’ll feel in control over your expenses and when you feel like that, you’re much more likely to make wise decisions about your money and how you spend it.
7. Know How Much You Have
This, along with following a budget may seem a little restrictive at first, but once you get the hang of it you will see how much easier it is to calculate your needs and money. You need to know exactly how much you earn, how much you have in the bank and how much you’re spending. There are so many hidden costs that you don’t even pay attention to, for example a magazine subscription.
6. Always Pay the Bills on Time
Yes, this is a money management tip! Why? Because if you ignore your bills or pay them late, you’ll get fined and you end up spending more money that what you should have in the first place. Also, knowing that all your bills are paid, will give you that sense of relief that is so wonderful.
5. Make an Emergency Fund
Experts suggest that you should have an emergency fund that will help you live for three months without any other type of income… in case you lose your job or something happens and you need money for hospital bills or medicine. You know what they say, better safe than sorry!
4. Compare, Compare, Compare
Don’t hurry to buy something before you’ve had the chance to compare prices. It’s not because you’re stingy, it’s because it’s the fair thing to do – you should search for the best offer and compare prices, especially when it comes to furniture and electronic equipment.
3. Avoid Debt
Go ahead, smile! We know that telling you to avoid debt is like telling you to avoid death, but you can at least try to postpone them for as long as you can, death and debt also! You will need a mortgage at one point, you will need to have a credit card and all that, but at least do it once you’re out of college. Don’t start early, it’ll put too much pressure on you.
2. Start a Retirement Plan
Young people don’t like to think about old age. Actually nobody likes to do that. But we have to, we’re responsible adults who must ensure a good future for ourselves. You want to have some money put aside when you’re old – to travel all those places that you couldn’t when you still had your hair and your strength.
1. Enjoy Your Money within Reason
We’re not saying you should put all your money in the bank but one of the best money management tips is to enjoy your money within reason. It’s your hard-earned money, you’re supposed to spend it however you want, and you should, but we suggest you be wise with it – for the sake of the time and effort it took to earn it.