Money matters and Tips on Money management, mattered more than ever in the past decade. The internet is flooded with articles on tips on money management.
The English pop group ABBA has a chartbuster song Money, Money, Money in their album. One of the lines says “All the things I could do, If I had a little money, It’s a rich man’s world.” Well, not anymore!
Despite the boom of articles , this article may be what you are seeking. It aims to give you a head start to the journey of making wealth. Each one of us can aim to become wealthier than our neighbor. Despite apps on money management, the world all over follow few of the age-old tips on managing money till date.
Table of Contents
Money sense-habit of childhood
It would all start with just holding the glossy currency. As kids, we would accompany our elders to the market to buy us cookies and candies. we should introduce Money talk and Money-sense from childhood. School should conduct extra curricular activity like bank-visit.
The children absorb what they see and hear about money. Pocket money and guide to using it, lays the foundation for money management. Finance management need not be a task to learn or teach. Students have mismanaged their college tuition fees resulting in a high rise of student drop-out.
Your first money and goals
We create wealth from how much ever you save from whatever you earn. It is the pebbles that make a hill. Every penny makes wealth. It may be tempting- all the long lists of to-dos and to-own you may have jotted, one of the important steps towards building wealth is to have a financial goal to achieve.
Set achievable goals. Write it down. Avoid setting aspirations more than you can chew. Make them attainable in the long term. One at a time. Pose questions to yourself. What is the plan to spend the money? Do you want to go on an annual holiday? Is that new phone reckoning you to buy it? Set goals and be consistent in achieving them. At the beginning of each month stash away a predetermined amount of your income into a fund which is out-of-bounds till you need it. Give this tip a shot, it worked for me. My money and self-confidence rose to new heights.
Saving Money For a rainy day
Time is uncertain. It has its peaks and valleys. It is never the same. You may be very well-settled in your life and job. As you go through this dream come true, there may be a bump or two that you will experience. I am taking care not to be a pessimist; my tip for better money management is that you save up for unforeseen weather. Getting yourself insured to reduce the impact of Unemployment, crash in stock market, accidents, ill-health, natural calamities, and the like. It is wise to save up for unexpected or not in your control pits on your road. It helps to keep you and yours secured financially on a rainy day, so to say.
Needs and Wants…and Money
It is advisable that we should demarcate the ‘wishful horses’ into wants and needs. Wants are those that are impulsive. Not much planning goes into it. You pass by that premium coffee shop. That whiff of coffee allures you. You need a coffee. OK. Being sensible advises you to pass the fancy premium coffee that you want, to a coffee that you need. On second thoughts, you may not even need a coffee now! A money management tip her would be to take a moment to define your needs and wants. For larger temptations, sleep over it, literally. Give the thought some time to rest. If you still need it, look for affordable options and go for it.
Peer pressure and your money
This money management tip is for the collegians living on scholarship or student loans. It is imperative to learn to say ‘No’ to extravagance expenditure. It is important to be aware of your funds and budget, and the amount that you can allocate for the trips, or a cinema, or eating out one more time this week. It determines that you are in sync with your financial goals and wise not to succumb to the whims of your friends.
Keep track of your money
One of the most crucial tips of money-management is to make money your slave. You read that right. Money is a bad master but a great slave. So, you need to make money work for you.
• Keep a general account of where you spent how much. At the end of each day and month jot down the expenses.
• Broadly, categorize the expenses to a daily, weekly, monthly, and annually. In other words, Budget your money.
• Keep check of the amount going into these groups. This will help you jostle between your expenditure and savings and help you curb your expenses, if need be.
• Be abreast of the investments you have made and rise and fall of your stocks and shares, if any.
Sale, Rebate, Bargain
One great and common money management tip everybody out there has made it a habit, to buy during a Season’s Sale. Whether it is online or in-shop purchase, buyers all over the world wait for a Sale during the major festivals. The stock clearance by the retailers with huge rebates on the display is a boon for consumers. If you are allowed to bargain and you have the knack for it, then use it. Go ahead and shop for the enticing stuff displayed on the window and save as much as you can.
Money-management is a discipline by itself. Get yourself educated on other aspects of wealth management. Consider taking support of financial advisors regarding investments, retirement plans and insurances. The sooner you start managing your money, the better your money will manage you.
Also Read: How To Actually Master Self-Discipline – Proven For Sure
About us: Evolve strives to make mental wellness a priority. Download the EvolveApp and practice the ‘journeys’ to an anxiety-free lifestyle. It helps to make a de-stressed lifestyle habit. EvolveApp is judged the best app of 2021.
From sharing her views on blogs in MoTA to being a blogger in it, Lakshmi Srinath has been writing her thoughts since 2010. Thanks to a persuasive face-reader, she took Content writing on to a next level since August 2021 with a certification in the same, from Henry Harvin Education, India. When she is not among her thoughts and words writing content, you will find her pursuing her hobby in art or gardening or just gossiping the latest on insta, with her daughter. She staunchly believes that mental wellness leads to physical wellness. Lakshmi lives in Pune, India with her daughter and husband.