Managing your money requires some disciplines and lifestyles changes. Irrespective of your financial status, whether rich, average, having little or no savings; these three simple actions could help you manage and control your money for your financial goals.
Introduce budgeting to replace random spending: Many surveys and studies have shown that creating a budget to give structure to how you spend your money is one of the most efficient ways to manage your finances. It was discovered during these surveys that, worry about spending mainly comes from the inability to be 100% sure of your income and expenditures. This later leads to financial stress due to the fear of the unknown.
How do you solve this problem? Introducing a budget to your daily, weekly, and monthly spending may be the solution to reduce your financial stress. A recent survey carried out by one Australian financial expert found out that a very large percentage of Australians don’t keep a budget and some have a budget but they are not disciplined enough to stick to it.
Introducing and keeping to your budget is like holding on to your mission statement.
Take your time and go over your current balance and daily or monthly incomes. What are the daily or monthly necessities such as food, bills, entertainment etc? Where are unnecessary expenses creeping into your budget? All these factors will help you to track your cash leakage and open your eyes to cut frivolous spending. Evaluate your budget plan once a month to check that you are still on track.
Direct deposit and auto pay are ways to control your money reducing penalties relating to overdue payments. Getting paid through direct deposit saves both time and other applicable charges like overdraft fees in case you are behind schedule to fund your account.
Set up an automatic deductions or payment for bills such as car or asset loan deductions, utilities, rents, and other things on your monthly budget. This helps you to stay on top of your bills and effectively track your balance; having rest of mind that you are not indebted to anyone. No late charges, overdraft, or inconvenience fees.
Spend more on quality: This one may sound odd, but it is one of the best approaches to manage your money. Have you thought about those household items that are lying down in your house? You buy an electric kettle or a toaster today, and in a couple of months, it gets burnt. I learned how to buy quality stuff when I discovered how much I incur on cheap items after sometimes. Though I learned this in a hard, but I appreciate it now.
If you know you are going to be putting an item into use every day, invest in better quality and more durable options regardless of the price difference with the cheaper ones. This applies to other things such as shoes, clothes, wallets, bags, and much more. The result is that you will save and gain more in the long run.
Having said all this, your efficient financial management is based on discipline and determination. However, if you have been keeping to these three simple ways to control your money and you are still having issues with your finances, it means you are making some spending mistakes Re-evaluate your finances to discover what areas you are wasting your money and work on them. Try this, and you will be glad about the result.