Have issues with money management? Read this to understand how to manage your money better.
If you have ever found yourself in a financial problem before, there’s no doubt you won’t like to go through that experience again.
Your ability to manage your money properly is one way to avoid having a financial headache » , but many people don’t take it seriously until they go deep into debt.
How then can you prevent a situation like this from happening? It is very simple, follow these simple steps and thank me later.
1. Be mindful of your spending
Don’t just go about using cash or your ATM card to buy everything. Beware of what you spend your money on. How much do you spend on a daily basis and on what? Do you spend your money on what you want or what you need? Not being mindful of how you spend your money is one of the major reasons you run out of money as soon as you make it.
2. Live on cash
If you are used to using your ATM card to pay for anything you buy, you’ll like spend more than someone who buys with cash. Try to live on cash for two-weeks and see the difference in your spending.
3 Track your spending
Some few days after payday you have some money in your account, and two weeks after, you are already borrowing from friends and colleagues. Where did all the money go? If you can’t explain, you are guilty of not tracking your spending. Take note of what you spend your money on, it makes it easy for you to determine how much you’ve spent and how much you have left in your budget for the month.
4. Have a spending plan (Budget)
Have you ever looked back at your bank account and wonder why you have little or no saving? Don’t go too far seeking an answer to this question. If you don’t have a spending plan, you’ll most likely run into a financial trouble.
Having a monthly plan for your spending is one of the smartest things you can do for your finances. It makes things easier for you because you are giving yourself a guide on how to spend your own money.
5. Identify expenses you can reduce
Is there anything you buy or subscribe to every month that you don’t really need? If you have any of that, you’ve got to cut it off your expenses.