Money makes the world go around, and when it comes to living your life, it can certainly influence what you do. It’s important that you are managing your money in the correct manner so that you don’t have to go through life having to struggle or worry about your money. With that in mind, there are certainly plenty of things that you can do in order to manage your money effectively and get the most out of your life experiences. Here are some tips for managing your money better in life.
Create A Monthly Budget
Firstly, you want to be able to know how much money you have coming in and how much you have coming out. This is the basics when it comes to having money, and you want to create yourself a monthly budget to help with your spending. Those who don’t have a monthly budget, are likely to find that they spend more money and perhaps don’t save as much as they’d like to. It’s also not necessarily something you’d get taught in school or by your parents particularly. Sometimes you need to work it out on your own, and there are plenty of examples online of how you can create a budget if you’ve never done so before.
When making a budget, it’s a good idea to set it up on a spreadsheet, and therefore, it’s something you can track as you go, rather than just scribbling it down on a piece of paper. It gives you the opportunity to go back and input any additional data and perhaps set yourself a few financial goals in the process. It might be how much you can save for the month and plan ahead for any future months where you might have more expenditure than normal.
Always Have The Attitude To Save
Saving money is something that really everyone should have the attitude to do but not everyone does. Being able to save is important for your future and for situations where you might need some money in an emergency situation. There are so many times in your life where you’ll need to spend money, not just in small amounts but in bigger amounts too. Saving can be difficult though when you’ve never done it before or have tried and failed. It’s having that awareness of your money that’s the first stage and creating a budget to know how much you have to work with. When it comes to saving, start small. It doesn’t need to be a huge amount, but at the end of the week or month, put some of the money you have into an account that you can’t touch. You can then work up the amount after you’ve become used to setting money aside.
Before long, you’ll be able to put hundreds aside and see it as just another outgoing for your monthly income. Every little helps, so even if you can only ever put a small amount in, it’s worth doing.
Consolidate Any Debts
Debts are something you don’t want a lot of because they can end up risking financial ruin if you’re not careful. It’s also something that is worth considering if you’re in a position where you do have multiple outstanding debts to your name. A little debt here and there can be important for your credit, but you don’t want this to be controlling you. Borrowed money is something that was never yours to begin with and so it’s important to really take it seriously and to pay it back as soon as you can.
If you’re in a situation where you’re struggling financially, you may want to think about getting a licensed insolvency trustee. Filing for bankruptcy is never something that you want to happen, but it might be the best option to get you back on your feet and with a fresh start.
Cut Down On Your Expenses
Expenses are something that can be controlled to an extent. We all have our regular bills to pay, whether that be rent, a mortgage, and the necessary utilities to run our homes. However, there are also lots of other expenses, and some of these might need to be reduced in places or perhaps cut out entirely. Anything that’s necessary for your survival is obviously something that can’t be cut out, but things like your gym membership, for example, or a beauty subscription can be cut. This might be a temporary thing whilst you get your finances in check and get better at managing your money.
It’s great to be able to get things for ourselves and others, but sometimes it might be a good idea to cut down where you can to save yourself some more money.
Regularly Look For Better Deals
Life is full of opportunities, and when it comes to expenses, you can also save money by looking for more affordable alternatives. It’s worth looking out for better deals, and perhaps it’s worth checking in with your utility companies and comparing your current deal with that of others. You might find that some of the other companies are offering better deals, and it means you can save a bit of money in the process. There are always going to be opportunities to save your money, and it’s also worth being a bit cheekier in life and haggling. Haggling to get a better price on your first home to haggling to get a better deal on your mobile phone contract. Do what you can to save money in places, so that you can use it elsewhere!
Think About Your Retirement Plan Now
Retirement can seem a long way off for some people, especially for those that are in their twenties or thirties. However, it’s very important to try and think about your retirement plan ahead of time so that you can save yourself some extra money. You may get a certain amount from the government/state, but you might want to save up extra in order to help fund your lifestyle a little better. It’s important to do so and think about these things so that you can get to retirement sooner rather than later. There’s a lot that you can be doing from an early age in order to save as much as possible. You might also want to think about investment opportunities and how that might be able to earn you a bit more money.
Have An Emergency Fund
Emergency funds are necessary for everyone to have, and you don’t realise how important it is until you have an emergency. Extra money can always be useful for situations that are unexpected and usually come with some financial burden. Whether that’s your car being written off or your boiler breaking down and needing replacing. These emergencies aren’t something you’ll be able to cover easily in one paycheck, and therefore, having some extra money can certainly be helpful when the time comes for it to be needed. Make sure that you are saving this money and that you’re not using it for non-emergencies.
Consider Having A Side Hustle/Business
There are definitely times in life where you can end up making more money than the amount you might make in a job per month. A side hustle or business is something that many people might want to try and start in order to make extra money. People think it’s impossible, but it’s not: there are many ways to make $500 in under a week, for instance.
It’s definitely something worth considering if you’re someone who has a talent or business idea and would like to try it out. It’s not always something that works, but it can definitely be successful with the right combination of the right idea, passion, and time that goes into it. Consider what you’re good at and, more importantly, what could sell.
Get A Joint Account With Your Partner
If you’re in a relationship with a partner and you’ve perhaps moved in together, then you might want to consider having a joint account and knowing each others income. This can be helpful for paying bills and for making plans for the future. It’s not something that everyone would be ready for in terms of transferring your earnings into a joint account, but to have one just for bills can be useful. For those who are in a relationship that has turned into an engagement or you’re planning to buy a property together, a joint account is definitely worth getting. Don’t be afraid to face the plunge because it’s going to be useful in knowing what’s available for you both when you put your incomes together.
Managing your money isn’t easy, and we all have moments where we’re worried financially. However, if you’ve created a budget and gotten used to saving, you will definitely have a more enjoyable life without the pressures that come from wanting to be financially stable. Use these tips to help you manage your money better and to be able to enjoy both the small things and those that might cost a little money in order to enjoy!
MaryAnn says
Great tips. Thanks for the article.