Money doesn’t grow on trees, and in uncertain times, knowing how to manage your money is a valuable skill. I am sure you have heard the expression “Easy Come, Easy Go”, and it certainly is when it comes to money.
But budgeting doesn’t have to be a boring task.
You can start viewing it as an organisational tool.
Not only can it help you to manage your money, but also your life.
It is a form of personal development that many people overlook. So, what are the key areas that you can look at?
Well, a lot of it is good old common sense. But it is always good to go over the main areas to help sharpen your money management.
Check out these 7 Easy Tips below and start to manage your money like a pro!
Tip #1 Start saving your money
When times are tough like they are right now, it can be hard to think about saving your money.
Also, not everybody is a saver. Back in March of this year, The Money Charity found that 12.8 million households in the UK had either no savings or less than £1,500.
But when you have money coming in. It is prudent to try and put some of it away. You never know what is around the corner.
It doesn’t have to be the same amount every month. But try to get into the routine of saving a little each month.
Tip #2 Set up a budget before every month
We all say we are going to do it, but lots of us then don’t follow through. Set yourself a budget for every single month and stick to it.
It is very easy to buy things here and there, but unless you have a limit, who is going to stop you? The budget police?
Here is a great step-by-step guide from The Balance to set up a budget.
Tip #3 Think about your future
Sometimes you need a bit of an incentive to make sure that you manage your money well.
Think about something that you really would like to have. How are you going to be able to buy it?
The answer is simple: by managing your money well. Next time you reach for your purse or wallet, remember your future goal.
Always keep your eye on the future goal. It will help to keep you motivated as you work towards the goal.
Tip #4 Only buy things that you love
Only buy things that you love, love, love. Anything else is just not worth it.
I am sure you have some clothes that you never wear. Or some home furnishings that don’t look right. We have all made that impulsive buy and then, later on, feel full of regret for wasting money.
An easy way to get around this is to check everything that you buy yourself. Ask yourself “Do I love it?”
If you don’t hear a big fat Yes! in your head, then don’t buy it.
Tip #5 Monitor your money – in and out
I recently reached out to my followers on Twitter and asked how people budget. One gentleman explained that he writes everything down.
He suggested writing down everything that you spend and what you earn for two months.
Tracking is a great way to monitor your money and can be a bit of an eye-opener. If you’re a bit of a spender it could give you the short sharp shock that you need.
Make Use Of has some great spreadsheets that you can use to track your money and budget.
Tip #6 Create “A sigh of relief” fund
“A sigh of relief” fund can be a separate fund to your savings.
It doesn’t have to be substantial. Look upon it as a your “treat jar”. Start collecting a certain type of coin in your currency and keep going.
You will be surprised how much you can save in a short time. Then next time you want to treat yourself, dive into your fund.
The best thing is you will not have touched any of your savings. And don’t forget to sigh in contentment afterwards!
Tip #7 Tell your friends and family
If you want to manage your money the best way you can, you need to cover all options. It is easy to be swayed by family and friends to buy things or do things with your money.
Let them know what you are doing so they will remember not to encourage you to spend.
Your family and friends will be more than happy to help you stay on track!
Budgeting and managing your money does not have to be hard. It is as easy as you want it to be. Don’t put yourself under stress and only spend the money that you have right now.
If you can save some money, you will benefit from it later in the year. Also, commit yourself only to buy the things you love.
A little reserve will always help, and if your family and friends know what you are doing, it will be even easier for you.
Please care and share this article. Also, if you have some smart ways of managing your money, it would be great to hear what you do!
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