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How to Manage Your Money
If there is one fact that everyone can agree on in the divided world we live in today that is that money rules everything. To an extent, it does at least. While no one should make money the ultimate pursuit of their life there are very few among us who would disagree that a little more money would help to solve at least a couple of our problems. Well, let’s take a look at some of the ways that you can take charge of your own financial destiny and finally end those financial worries that are holding you back from experiencing the fulfilling life that you deserve.
Top money tips to better manage your money
It is possible to write an entire book on the subject of personal finance but most of you probably are too busy to read 300 pages of anything let alone a subject as technical as this. Most of the information in those books can be boiled down to a few key action items that make the majority of the difference. Let’s break down some of the key factors that will give you the edge to controlling your personal finances in a way that you never thought was possible.
Make a Serious Budget
Anytime you listen to a financial guru offering their advice on how to change your financial status the very first piece of advice will always be to make a budget. They often forget to mention that a budget will only be as useful as you allow it to be. If you do follow your budget then it will not be useful at all. If you are unsure of how exactly to break up the allocation of your budgeting categories you can always start with the classic 50/30/20 break. In this scheme, you devote 50 percent of your budget towards necessities, 30 percent towards things that you want, and the final 20 percent will go towards your savings.
Automate Your Savings
One of the easiest ways to make sure that you save more money over time is to automate it entirely. There are a number of apps and banks that offer services today that allow you to save easily and automatically as you go about your day. Some of them will round up your purchases and put the change to the nearest dollar into a savings account for you. This will add up quicker than you think. Just make sure not to mess with it until you are ready to make a major purchase with your savings. Other apps are available that will automatically invest a small amount into stocks every week or even every day for you so you can build a portfolio slowly over time.
Plan Major Purchases
It can be tempting when you are making major purchases to let your emotions overwhelm you. Who can blame you? It is exciting to make a major purchase whether that is a car or a home. At the end of the day though you will always come out ahead when you take the time to properly plan out major purchases. That way you can make sure they are within your budget and also make sure that you even want it in the first place. There is no need to waste money on something you do not really need anyway.
Set Savings Goals
One of the biggest reasons that people end up giving up on their savings journey is because it becomes boring to them. It can feel like a lot of self-sacrifices for no reason besides some arbitrary goal of having a specific number show up when you look at your bank account. Take advantage of the human psyche and gamify your savings by setting goals for yourself. They could be something like a vacation abroad or a specific video game. Anything that would make you excited to keep on pushing when it gets tough to keep up your savings habits.
The money guide: Increase Income and Lower Expenses
There are several ways that you can take your money game to the next level besides the basic tips found above. Here are some of the best ways that you can supercharge your finances by increasing your monthly income and decreasing your monthly expenses. By changing these two variables the impossible can become possible very quickly in the world of personal finance. So let’s take a look at exactly how you can take advantage of these powerful tools and habits.
Join the Gig Economy
Today most of us are already working one job and many of us are finding that it is not enough on our own. Of course, you can try sharing expenses by getting roommates but there is a new alternative for those of you who are motivated to go out and work hard for their money. The gig economy has helped to open a lot of doors for people by allowing them to draw in extra income while they are off-hours at their regular Jobs. Depending on the market you are in some of these can bring in over 2000$ a month just working outside of your regular hours.
There are so many subscriptions available nowadays most of us have had the experience of looking at our bank statements and seeing multiple auto-draft charges that we do not even recognize. Many times we will brush them off as being only 20$ or only 10$. That may not seem like very much money but if you have multiple of these going over the course of a year it can quickly add up to 500$ or even more if you do not stay on top of these hidden expenses. Do not let these charges get away from you and take action by canceling these needless expenses ahead of time.
Now that you have a better handle over the basic aspects of your financial life, you have improved your income and lowered incessantly monthly subscription costs we can move on to the big guns of monthly expenses. Most people spend the majority of their money each month on debt servicing between their home and their vehicles. If you have been responsible over time there is a good chance that you could qualify to refinance some or all of your debt. This can be a great choice for several reasons. It can help to consolidate debt from multiple accounts into one single account that is much easier to keep track of. If you have been able to improve your credit since you very first took on the debt then you may be able to qualify for a better interest rate.
This can help to decrease the total amount that you pay every month, reduce the total term time of the debt, and decrease the total amount you will end up paying in interest over the life of the debt. All in all, this is a very powerful tool for helping to really change the outlook of your personal finances and do it in record time.
Finally, we can move on to the last piece of financial advice when it comes to managing expenses every month. It is a truism that everyone has bills to pay every month. Now, most of us simply accept that the rate we pay is the rate we pay. This is not true at all. Whether you negotiate with your current provider or you spend a little time shopping around it is almost guaranteed that you could make to several over 100$ a month or even more on your bills if you take the time to look for lower-cost options. Do not just accept that you are getting the best rates already even if a company tells you so. If you have been with them some time they will often be willing to give you a better deal to keep your business if you threaten to cancel service with them or switch to a competitor.
The Bottom Line of The Money Guide
In this world, it is up to each one of us to do the best with what we have. Unfortunately, many people seem unable to do that basic task. Now it is not due to them being incapable individuals but simply due to a mere lack of information. Anyone can be in charge of their personal finances if they take the time to educate themselves on the basic tenets of the subject. By the end of the year, it is possible to imagine an entirely different outlook on the future as long as you are willing to put in the work that it takes to get there. Do not let yourself get discouraged. While it may seem at first to take longer and be more difficult than you originally imagined it will most definitely be worth it once you reach your ultimate destination.