The moment you start earning is the time you have to start managing your money. Many simply don’t or don’t know how. Getting money matters in order is the first thing you should learn. In this post we’ll be taking you through some tried and tested ways in which you can manage your money. Once you start earning you’ll start having bank accounts, insurance, places to save your money, credit cards and so much more, keeping all this in track is key to good management. So without further ado let’s look at how to manage money the easy way.
Start off with a budget. Believe me this is essential. Knowing how much is coming in and how much you need to spend with an emphasis on the word need, is key to learning how to manage money. By having a budget you know just how much you can spend and you stick to it no matter what. This stops you from going into a never ending cycle of debt. Not only that knowing what you have coming in and how much you have left over will help you save.
Saving is essential when it comes to planning your retirement and other necessary unforeseen expenditures.
Maintain a list of all your expenses you incur in a month. This is something a lot of folk don’t do. Ask them how much they spend in a month and they don’t know. If you’re one of these people, here’s the chance to start maintaining accounts. Plus it’s easy to do. For a month start making a list of all your expenses. Remember to take into account all the cash as well as credit card payments too. Once this is done you will get a fair idea of all you have spent. You can then tally this up with your income to see how much if any you have left over. This step in how to manage money is great too when it comes to avoiding any unnecessary expenses. Believe me we all have some of those.
In this step you’ll know all you have coming in. whether it be from bank interest or salary or any other place. Many people already know how much they make in a month. This is an important step when it comes to managing finances. It’s only once you know what you have can you then know how much to spend.
As mentioned in the earlier step take all your monthly expenses and subtract it from your income. If you’re left over with a negative figure, it’s time to take stock and start cutting your expenses ASAP.
Alternatively if you have a positive figure, this is great. You can either pay off some debts and maybe start saving something.
Many people who want to learn how to manage money, have debts they need paying off. In this step you need to figure out all that needs paying. In many cases there is even an option where you can get all your unsecured debt together and make one payment. The advantage of this is that you don’t have to pay things individually and you won’t lose track of what all you have to pay.
Getting things right with setting a Budget:
Start off with a budget. Believe me this is essential. Knowing how much is coming in and how much you need to spend with an emphasis on the word need, is key to learning how to manage money. By having a budget you know just how much you can spend and you stick to it no matter what. This stops you from going into a never ending cycle of debt. Not only that knowing what you have coming in and how much you have left over will help you save.
Saving is essential when it comes to planning your retirement and other necessary unforeseen expenditures.
How to Manage Money- Know your Expenses:
Maintain a list of all your expenses you incur in a month. This is something a lot of folk don’t do. Ask them how much they spend in a month and they don’t know. If you’re one of these people, here’s the chance to start maintaining accounts. Plus it’s easy to do. For a month start making a list of all your expenses. Remember to take into account all the cash as well as credit card payments too. Once this is done you will get a fair idea of all you have spent. You can then tally this up with your income to see how much if any you have left over. This step in how to manage money is great too when it comes to avoiding any unnecessary expenses. Believe me we all have some of those.
How to Manage Money- Knowing your Income:
In this step you’ll know all you have coming in. whether it be from bank interest or salary or any other place. Many people already know how much they make in a month. This is an important step when it comes to managing finances. It’s only once you know what you have can you then know how much to spend.
As mentioned in the earlier step take all your monthly expenses and subtract it from your income. If you’re left over with a negative figure, it’s time to take stock and start cutting your expenses ASAP.
Alternatively if you have a positive figure, this is great. You can either pay off some debts and maybe start saving something.
How to Manage Money Better- Get your Debt Together:
Many people who want to learn how to manage money, have debts they need paying off. In this step you need to figure out all that needs paying. In many cases there is even an option where you can get all your unsecured debt together and make one payment. The advantage of this is that you don’t have to pay things individually and you won’t lose track of what all you have to pay.
