10 TIPS TO MANAGE YOUR MONEY BETTER

Managing our finances is a task we all develop due to the importance of keeping expenses under control. Each day an ever growing amount of people are managing their money more sensibly thanks to old-fashioned techniques like making weekly lists of expenses, however, it is never too much to receive some more simple and effective tips. Below are some of our recommendations.

  1. Don’t spend more than you earn

A fundamental part of financial management is being aware of your monthly income and not overspending. Start being more conscious with your money and you’ll avoid flooding yourself with unnecessary debt that only brings you more negatives than positives.

  1. Monitor your spending

Keeping a count of all your personal expenses is a good way of maintaining your budget under control. It’s not just an exercise that helps keep all the products you consume in the margin, but also helps you realize how much of your budget you could actually save. Not only will you be more conscious of your spending each month, but also turn saving into a regular habit.

  1. Create a budget

Once you are monitoring your spending start keeping a stable budget for everything and administrate your money responsibly. A simple formula that has given positive results for many people is use 50% of your budget on basic needs, 20% on savings and 30% on other expenses. This way all your expenses are being controlled sensibly. It goes without saying that you should also contemplate a small part for personal savings.

  1. Look for different investment options

It’s fair to say that having a savings account in case of emergencies is a responsible thing to do but there are many other ways of making your money grow. You can buy shares or invest in a small business that in the long run will give you a steady extra income. Don’t invest all of your savings – using just part of them could help give you positive numbers in your account.

  1. Be efficient with utilities at home

Try to be more efficient with services like electricity that you use at home. A simple way of controlling things can be turning off the lights when you leave a room. Just having one T.V that you can all watch as a family will also help. Energy saving tools will help keep your budget under control and reduce the amount of energy you consume.

  1. Analyze your bank accounts

There are currently many different types of accounts that can help you control your money responsibly and help your savings go a little further. Check which is the best bank that accommodates around your budget to help make your savings grow each month.

  1. Make paying debts a responsibility

One of the worst consequences of mismanaging your money is debt. Its true that getting credit can be the first step in developing your finances in ways like buying a house or starting your own business, but it can also be your worst nightmare. Try to pay off all your outstanding debts as so not to let their interest grow and become impossible to pay. It’s highly recommendable to assign a percentage of your wages to cover this cost.

  1. Use software or an app

Technology can be a great ally when it comes to managing your budget. There are a vast number of apps designed for this task. The main priority of these apps is to keep your finances stable so that you can go about your day to day activities and take full advantage of your money.

  1. Start recycling

The main objective of recycling is to reduce the amount of rubbish you produce but it can also have a direct impact on your bank account.  Reusing things like notebooks, bottles, paper etc. means that you wont spend so much on things you don’t need, and it doesn’t require a great deal of effort.

  1. Sell the things you don’t use anymore

Accumulating things at home is a habit that many people develop over the years. They can take up a lot of space in your home but could actually be a great way of generating a little extra cash. Check for things you haven’t used in a while, it could be that they still work and are okay to sell to somebody that really wants them. This way you’re getting rid of your unwanted or unused items and building up a little money for a rainy day.

Managing your finance can seem like something complicated, however, it’s a task that has formed great habits like the ones above. Start putting them into practice and you’ll see your monthly budget stretch even further.