You know that feeling of collecting salary today and you are feeling elevated above the ground and in one week, you are like, ”where did all the money go?” Yeah! We all have been there! In fact, most of us are still there.
Managing money can be very tricky. It’s almost like the more you try to manage your financial affairs, the more it blows up in your face. The feeling of managing money often for most people comes with foreboding fear. Sometimes, you are on a good management streak but something just comes along and takes you down the rabbit drain.
This is why it’s good to cultivate a balanced money management plan as soon as possible. Today, we have 5 short tips to keep you on top of your game.
1. Understand Your Priorities.
You see, priorities are what makes every individual in life. Your priorities are what defines you. This also boils down to your money management. If you neglect to understand what your priorities are, you are going to be making a grave mistake when it comes to your finances and money management.
Have a money goal, the same way you have life goals. Know what is important per time. Know what you need to spend money on. Do you have outstanding debts you need to take care of? Is there a class you need to save towards? Understand where your money priority is and then you can now move on to budgeting.
2. Know Want You Spend Money On
Because you’ve been bad with money in the past, you need to play detective, cop and SWAT officer (not Nigerian SWAT o) with your finance. Know who the individual culprits behind your ”brokeness”. Pull out your receipts, your bank statements and everything that can give you insight into your finance and work the tables from there.
Know in detail how much you spend on food, clothes, utility bills, rent, entertainment, transportation and all other miscellaneous items. After you are done, now total the amount of money you spend on each item to know which item takes precedence.
3. Now Draw Out A New Plan
Now that you know what is eating your finance, it’s time to draw out a new plan. This plan is one that would equate to the amount of money you are earning.
For example, let’s say you are a foodie and every other week you like to try out new restaurants for fun. Yes, it is important to you but you might need to tone down the extent at which you spend money on that expense to balance out your new plan.
Ensure you have a savings plan. After every month’s salary, you can create an autosave feature where it allows you to save immediately when you receive our salary. This way, you are not only being responsible but saving towards your future or an emergency day. Have a spreadsheet and each week, know your process.
4. You Have to Stick to the Plan
You cannot waver if you really want to be a good manager. You need to stick to the plan.
If you are one that cannot do without spending, you can withdraw the amount you need for each week and leave your credit card at home. This way, you are forced to stick to your budget.
5. Pay off Debts
One of the problems of people and savings is debt. You cannot save if you have debts. So, to ensure financial stability, revisit your debt list and start paying them off little by little.
The more you have debts, the more difficult it is to actually have good savings and money management.
So in conclusion, make sure you manage money and do not let it manage you. We hope you have learnt one or two ways to keep track of your savings.
Until next time! Have an amazing weekend.
