Overview ON How to manage money
How to manage money may seem difficult to answer, but only because you didn't take the time to think and start actual management, today it's easier to maintain a financial system than ever before.
With a precise budget, a mentioned savings and some interest in your income and expenses, you can manage your money wisely now.
In this article we will give you the most practical tips to manage your money and savings and secure yourself and your family financially.
To work on how to manage money, make a list of your monthly income.
Calculate all your actual monthly income now, and don't add the income you get from an increased or future job you hope to receive or incentives and rewards, just add your real income that you guarantee every month.
This gives you a clear picture of how much money you have to spend each month, to create an accurate budget.
Over Time can put additional funds from bonuses or overtime under an additional item in your budget.
This makes you organize your life solely on the basis of your basic income, and the extra money or the "extra" is a good reward and surprise for you.
Track your expenses every month to learn how to manage your money
Keep all purchase receipts within one month to be able to know the actual expenses and expenses each month.
Fortunately, modern technology helps us with these things, go online to find out about your credit card activity.
Some banks classify such expenses as "foods," "bills" or "cosmetics."
If you don't have a credit card, save the receipts and write down what you buy.
Sort your expenses to know how to manage your money
After tracking your expenses for a month, you can now categorize them into a basic, non-essential and non-essential proof.
That's how you can save money and start spending wisely.
Fixed expenses: Things that do not change from month to month, but must be paid compulsorily, such as rent, car petrol, premiums, etc.
Basic expenses: Include food, transportation, facilities, and anything you need to live, but its cost varies relatively from month to month.
Non-core expenses: This is anything that does not fall under fixed or basic expenses, such as non-core expenses such as cinema, games and hobbies, and this is the biggest area from which you can save money if you spend.
Keep your records to know how to manage money
After you have recorded your expenses and revenues and in a month and set your budget, keep what you have recorded.
One month behind a month will try to improve your plan, and a constant follow-up will help you develop, your income will almost remain constant, or increase at unaccelerated rates, but your expenses are variable, so you need to follow them.
You can organize what you write in a table or use your smartphone to write down.
Count the money you have left after expenses
After knowing only fixed and basic expenses, how much income is left?
Subtract fixed and basic expenses from your monthly income to see how much money you have left and can be saved as a "plus income" instead of spending evenings and picnics.
Read also: Reasons to Be Unhappy at Work and How to Deal With It
Proposed plans to take advantage of excess income
You can use the remaining "excess income" money to save and invest, you can allocate a minimum of 10% of the income.
This will benefit in the long run, and you can also use it to pay off large debt or other payments.
It is preferable to save 20% of your income as savings, because in 5 to 6 months you will receive a saving amount for your insurance and protection for a whole month in an emergency.
This method saves you money without having a significant impact on life.
Saving 30% of your income, this plan allows you to save money for large activities such as vacations and purchases such as buying a car or traveling. And so on.
But it is difficult to implement this plan.
Spend smartly until you get to how to manage money intelligently
Useful tips to spend smartly and reduce your expenses if you follow them this month will save a lot.
1. Commitment to the personal budget for money management
Ask yourself what's most to spend your money without feeling, know if you really need this thing, if you're passionate about fashion and buying international brands where you can spend a lot for a new shoe or shirt, look for places to sell clothes at the lowest price.
Know your priorities in life, this point can tell you a lot about what you care about buying and spending, and avoiding expensive purchases.
What things can you give up, such as morning coffee in a café you can eat at home, bottles of mineral water, and a lot of things you can give up to save.
2. Using the best credit cards
The use of different credit cards gives a sense within the subconscious that they are not actual money.
The benefits added to credit cards are great, so be careful when dealing with credit cards.
Here are some tips to help you use the best credit cards.
Read the agreement form before signing up and extracting the card, learn more about the monthly interest rate, how the minimum payment is calculated, and are there an extra annual account fee?
Try to pay more than the minimum monthly premium, as it reduces the percentage of interest that the bank places on the card.
Don't extract more than a credit card, many of them give you the impression that you are not in debt and you can buy more. Use one card to determine and handle your budget.
3- Know your purpose when buying
Purchases are a curse for anyone who wants to set their expenses and manage their money.
So you have to ask yourself before you buy anything:
Is this important and necessary thing to live?
Does it benefit you and enjoy you for a long time, or is it fleeting fun?
Away from shopping as entertainment, there are many activities you can do as entertainment rather than shopping.
Create a shopping list when you go to the store, it helps you save money.
Don't buy anything for sale, or have some discounts, just buy what you want and need, and ask yourself before buying why.
4- Before buying for a large amount look a lot
If you're going to buy something for a big deal like buying a car, smartphone or otherwise.
It is preferable to look a lot on websites to see which models suit your needs.
If you don't like photography, you don't have to buy a high-camera phone, and save the price difference for your benefit.
5. Go to bulk buying
It's not hard to reduce your home expenses, when you buy food or vegetables, you can buy from wholesalers in large quantities that are enough for you throughout the week instead of buying on a daily basis.
Plan your future and your future security for the next three months.
Who knows the future, anyone may have emergency circumstances of lack of income or otherwise, so you should focus on saving your expenses for at least three months to save yourself and your family from any instability.
You can extend this to 6 months, one year, three months, at least.
To determine this, refer to your list of fixed and basic expenses that you have created, and multiply that number at 3 to get emergency savings.
Here we have provided you with the most important tips on how to manage the funds properly to secure yourself financially according to your current income.