When it come to proper money management, many people are under the impression that as long as you keep track of what is in your bank accounts, and you don’t overdraw, then you are okay. While that is good in theory, it takes a bit more then that to properly keep track of your money and budget it. Proper money management is something that is not taught to us in schools, so we don’t really have a firm grasp of what it entails. There are plenty of ways that you can start managing your money today.
Save, Save, Save!
If you have a full or part time job, you should make a habit of setting aside a portion of it every time that you get paid. Open a savings account, and put the percentage you take out of your check in there. You can even check with your banking facility, as some banks these days even give you the option of splitting up your direct deposit into two different accounts if you so wish.
On the same token of saving money where you can, if you have the option to rent or borrow an item, that’s even better. For one, you will not have to pay as much to rent (or nothing at all if you’re borrowing), and two, it won’t take up any space in your home once you return it.
Find a Good Budgeting Software
If you are not one for writing things down or keeping ledgers, then you will want to find a good budgeting software that can help you keep track of your different expenses, as well as keeping track of your deposits. An easy way to do this is to input all of that information into a spreadsheet. However, there are plenty of programs out there that can help you with your budgeting and money management needs. You can easily locate them by searching on the internet. There are programs that are paid, but there are also programs that are equally as powerful for free.
Track Your Spending
If you are serious about learning how to manage your money, one thing that you can do is to track your spending. Ideally, you should track it for about a month, that way you will be able to see exactly what you spend your money on. After the 30 days are over, then you can look over your spending report, and figure out exactly where you can cut spending (for example, you can make coffee at home versus buying it at a cafe). Once you have started to cut your spending, you’ll begin to notice a marked difference in your bank accounts!
Some Other Quick Tips
Keep your receipts every time you make a purchase. Not only will this help to keep track of your spending, but they’ll also come in handy when income tax time rolls around.
If you have credit cards and you regularly use them, make sure to pay your bill in full each month. Otherwise, you should stop using them. Otherwise, you’re setting yourself up for credit card debt.