When it comes to money we all want it, but many of us don’t understand how to manage it. Our paychecks somehow seem to dwindle down quickly and we’re always waiting to be handed the next one. Managing your finances doesn’t have to be difficult as long as you take some action by following through on these great tips below.
Know What You Owe
You’ll be surprised at how much easier it will be to get a grasp on how you’re going to pay off your debt when you have an actual figure staring you in the face. Suddenly the impossible task of getting out of debt starts to be something doable. Take the time and write out every one of your debts. This includes things like credit card bills, mortgages, vehicle loans, student loans, and store credit cards.
Make A Budget
This is imperative to making your finances easy to manage. The first step in starting any budget is understanding your spending habits. We recommend taking a month and recording all your expenses. This can be as simple as using a budget app or printing off a banking transaction statement at the end of the month. Make sure you record everything! Now that you have an idea of where your money is going it’s a good idea to categorize your purchases into bigger groups. Examples of this would be mortgage, utilities, food, and gas. Take your monthly income and assign a specific amount for that category based off of your previous month’s spending.
Setup Automatic Withdrawals
We can’t stress this one enough! All the monthly bills you pay should be put on automatic withdrawal. This will ensure all your bills are paid on-time and you don’t borrow money that is intended for expenses.
Withdraw All Spending Cash
All money allocated for spending money should be withdrawn in cash. This will ensure you never go over your intended limit. This is a really great thing to do to help you save a lot of money and stick within your budgets. However, make sure that you never have too much cash with you at once. Losing your whole budget in an instance would be a huge bummer.
Setup Savings Accounts For Specific Reasons
Many banks, such as Home State Bank, will assist you in setting up specific savings accounts for things like vacations and emergency funds. This is imperative to separate your different savings goals to ensure each one is being funded with a portion of your paycheck.
By following these 5 money management tips you will be able to take control of your financial future. While some of these may seem difficult at first, you only need to set them up once. Then your finances will be in proper order and you won’t have to deal with any anxiety over money.
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