4 Steps To Money Management

| October 31, 2013 | 0 Comments

What is Rusk Management in Stock TradingDo you know where your money is going? Do you cringe every time you open your credit card statement? You can change your money management skills. It’s easier than you might imagine. The following are four tips to help you improve your money management:

1. Know how much you make

Unless you know exactly how much you are bringing in each month you cannot be sure that you’re spending less than that amount. Add up your household income and then go back to your records and check how much you’ve been spending the past few months. If you’ve overspent, you must correct that before it gets out of hand. You must also figure out how to spend less money than comes in each month from this point on. It might take some trimming in areas, but you can do it.

2. Save, save, save

If you want to save you must make saving a priority. Decide how much you will save monthly or yearly and stick to it. If you don’t trust yourself to remember or stick to it, set up your accounts so that it is automatically deposited into your savings account. Once you see the money in your savings account adding up, you’ll be inspired to continue doing it. But don’t forget to give yourself a little fun money also. You want to be able to save and still enjoy your life.

3. Spend wisely

If you’re used to going to the store and purchasing whatever you want on credit cards, you’re probably spending more money than you want or need to. Create a list the next time you go shopping. This way you will know exactly what you need. This can be done with any shopping you do, not just groceries. If you know what you need, you have something to focus on instead of just wandering around until something catches your eye.

4. Have goals

If you have financial goals, you are more likely to be in control of your money. Decide where you want to be in ten, twenty, forty years and figure out how you can achieve those goals. Learn about how other people have achieved their financial goals and let their stories inspire you.

Managing your money will take some getting used to if you’ve never had to do it before. By creating new habits you will learn to manage your money more effectively.

About the Author: Tom Davies is a personal finance expert and writer for compareit4me.com. compareit4me is the leading finance comparison site in the UAE offering users a choice of hundreds of UAE banking products. Click here to find out more about compareit4me.com

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Category: Personal Finance

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