Most people have an extremely hard time saving their money, let
alone managing it. Constantly seeing the newest bags, shoes, and outfits and
thinking to ourselves, “I deserve it. I’ll just spend less next month,” and
then next month rolls around and the same pattern continues.
Managing your money—like any other task in life takes lots of practice, consistency, and time. Mastering money management won’t happen overnight, but we’ve provided you with a few tips to help ease some of those worries and get those finances in check:
#1: Create A Monthly Budget
First things things—create a budget! Is a budget necessary to
manage your finances? Is it necessary to wear your seatbelt when driving?
Absolutely! Creating a budget centered around your daily, weekly, and monthly
finances will immediately show you just how much you spend, as well as give you
a better understanding of your financial situation.
In order to create an effective and sufficient budget, listing out
your expenses and understanding their role in your finances will allow you to
get a bigger picture of how to manage your expenses moving forward.
#2: Eliminate Expensive Habits
Is that snake print Tom Ford clutch really a necessity? Is it an
absolute must that you have those Jimmy Choo pumps? These are questions you
should be asking yourself when trying to decide whether or not an expensive
purchase is worth it. Removing expensive habits such as dinner at a fancy
restaurant twice a week, or purchasing a new pair of heels when you already
have so many similar ones in your closet contributes to managing your finances.
Once you begin to eliminate these expensive habits—you’ll quickly realize just
how beneficial it will be to your bank account.
#3: Pay Down Debt
When you’re drowning in debt, your net-worth simply doesn’t exist. Net-worth is important to us all, so shouldn’t paying your debt be just as important as well. Student loans, bank loans, car loans, home loans, any type of loan/debt is important to pay regularly, and on-time in order to be in good standing with not only the government, but your bank account as well. The idea of taking your money and spending it elsewhere sounds so intriguing, but paying down your debt is just as an important and responsible commitment to make. Trust me, your future self will thank you!
#4: Save, Save, Save!
We hear this literally everywhere. Our parents told us growing up,
our college professors told us, our colleagues and close friends tell us—but of
course it’s easier said than done. Saving is one of the most important task you
can do when trying to keep your finances in check. Getting into the habit of
saving will be such a rewarding experience once you realize just how effective
and simple it is. Pinch those pennies and save that money!
#5: Incorporate a personal finance app/tool
Finances can be complicated, but good thing there’s an app for
that (literally)! Invest in one of the many finance apps and tools that are
specifically designed to help you better manage your finances. Apps such as
Mint, Budget Simple, You Need a Budget, and Spendee are all financial
management tools that not only help you create and build a budget, but also
help you track your spending in real time! Honestly, what more could you ask
for in an app?
It’s never too early to start managing your finances and growing that
bank account! As long as you incorporate these tips into your daily money
management routine, you’ll definitely be making money moves in the near future.