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:
Tip #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.
Tip #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.
Tip #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!
Tip #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!
Tip #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.