Where Does All My Money Go? Time to Learn Money Management!
Ever get frustrated that why the money you earn is never enough to satisfy your needs? If yes, then you are not alone. Almost every other person is wondering where on earth do they spend all their money. If you don’t want to be bothered by this question ever again, then you need money management!
You might have come across the term a million times, but your financial crisis suggests that you have not done anything to manage your money. It’s never too late- if you have been careless about your finances till now, it’s time to make up for your past mistakes. Here a few tricks that can help you understand the importance of money management:
Save Money, Play Strategic!
Money game is tricky and you have to play real smart to win it! Make a habit of saving a fixed amount of your income every month. Bigger milestones are often overwhelming. Make achievable and small targets. Make a budget for monthly expenses and put in your best efforts to maintain it. You can do it if you do some strategic calculations. For example, deposit a fixed percentage of your income (depending on how much you earn and what are your expenses) into another your saving deposits account. It will help you save money, which is always a positive thing when it comes to restructuring your finances.
Develop A Sense Of Accountability
If you think you can’t stick to your financial commitments, develop a sense of accountability. Discuss your commitments and finances with your family and friends. Usually people who make budgets avoid having to discuss them with friends and family. This is primarily because they are scared of being answerable to someone. But this can really help you work on your plans.
Don’t Be Afraid Of Numbers
Managing accounts and doing calculations is not all that scary and difficult as it seems. You don’t need to master the art of accounting, but yes you will have to learn the basics. This is important for managing finances and making an organized budget. While making the budget, write down every major to minor expense to keep track of your expenses. This will also help you know if you are going over budget and you can also figure on what areas of your life you spend unnecessarily.
Spend Where Necessary!
Do you know the difference between basic needs and luxuries? If no, then you must! This is really important for budgeting and saving money. You can live without luxuries but not without basic needs.
Save on Bills
You can save a considerable amount of your income by reducing your utility bills. Simple deeds like turning off extra lights, unplugging electronic appliances etc. can help you save money on utility bills.
Saving money is not possible without management and strategic planning. Set goals for yourself to accomplish and you will see your money management skills will improve dramatically.
A Selection of Money Quotes
“Before you can really start setting financial goals, you need to determine where you stand financially.” ~ David Bach
“Money… is like a beautiful thoroughbred horse – very powerful & always in action, but unless this horse is trained when very young, it will be an out-of-control & dangerous animal when it grows to maturity.” ~ Dave Ramsey
“It’s not your salary that makes you rich, it’s your spending habits.” ~ Charles A. Jaffe
“Money, like emotions, is something you must control to keep your life on the right track.” ~ Natasha Munson