5 Best Money Management Tips

The economy is as unpredictable as the death but it is not this to blame every time your pockets go dry at the end of the month but you yourself are the reason behind it. Yes you! Because you may have developed some bad habits about your money management matters. This happens because we behave careless and possess very poor money management skills.

Money Management Tips

So what can we do to control this yes-we-need-it-badly kind of thing? Just learn how to spend money wisely and how to make a budget for it. Below are 5 best and easy money management tips that’d surely contribute a good part for improving your money management skills.

Plan How to Spend Money Wisely:

There are people divided into different classes (Not rich and poor BTW) like those who work and those who study and the one who help the first one to take care of second one (I hope it was clear enough). Whatever the role you play in your life, money would be there to help you doing that (luckily if you possess it) so just do one thing in the first place and that is to plan how you’re going to spend your money or savings (whatever).

Let say you have a whole month to pass and you are on limited funds. The best thing in these circumstances is that you decide where to spend your money first like go for big things like rent, bills and fees etc (Oh! I forgot to add groceries and food items) and then move for other (unimportant) things like DVDs, new dresses or whatever is on your mind.

Clear Your Debts First:

Borrowing is not a bad thing but when you do it for too many times then it’s an indication that you’re inviting bad days. So just overcome this habit as early as you could and only spend for what you can afford without boring anything. If you borrow from a friend, then it may not put you in as dangerous financial situation as if you borrowed from a bank (with interest). So just leave this habit and do one thing first when you get the money is that clear all the debts (if possible) and then move towards the saving plans (if you have any).

Save From Your Spending:

It is not like that you’d wake up one day and give up everything you do in your social life like to stop eating, drinking, SPENDING but what you can do to stay financially strong is to save something from your daily expenses. It’s like the good old days when you used to put your extra cents in a piggy bank so just do it again but this time, choose a bigger piggy bank.

Spend for Your Needs Only:

Overspending or being financially disturbed is also connected with human psychology as we’ve assumed most of the things a must-need-in-my-life scenario when it is not like that. Like it is true that mobile phone is a need but we tend to buy an expensive one when we can do well with a cheaper one. Similarly, dressing up nicely is a good thing in public but we tend to purchase an expensive dress that messes up with whole of our budget. So if you want to learn some real money management skills, then you should change this approach and differentiate needs from your wants and keep them in separate boxes.

Note Down What You Spend Daily:

Lastly, the one thing that many financially strong people do is that they keep the record of every spending for each day and they do it before going to bed every night. And you should also adopt this habit of writing all your expenses and what you saved before you go to your bed. In this way, you could easily be tracking the way you deal with money and how you spend it on different things. You could take a look on your past day, week or month and even year that would help you to find any unfavorable act you commit with your wallet (That sound too serious isn’t it).

There are a lot of money management tips that are beneficial for your bank and wallet that we’d share shortly but these are the basic one to take a good start for keeping a strict account of your spending

Comment below your own tips and strategies that helped you to overcome this awkward situation and help fellow readers to do the same.

Papu is a fictional character who speaks on motivation, self help, positive thinking and relationships.

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