While money can’t buy us happiness, it certainly does make us happy to have some of it saved up when times aren’t so good. Saving, managing, and basically taking care of our money needs a lot of work and patience! But while it may seem tough, it’s not impossible. But, how can we make managing our money something easy and even fun to do? Here are 5 ways you can do it!
- Know Where You Are At Financially. This might seem obvious to some but, knowing how much cash goes into your wallet (or bank account) is key for managing our money. So take a minute to determine your net income after taxes, not just your gross income. This way we know how much money we really do have. After this, write down all the expenses your make throughout the month. And no, this does not include Taco Tuesday or Monday Margs. Have in mind your most important expenses, like electricity, water, food, phone bill, internet, etc. In the end, you will have some of your income money left. Here is where the fun begins.
- Set Your Financial Goals. Remember, they have to be realistic goals and this depends solely on the money you have left after paying all of your most important expenses. So, what goals can we have in mind? Let’s start small, baby steps first. Don’t you just love eating out on weekends? Going to a different restaurant every Friday with your besties, or finding a new pub every weekend with the guys? Let’s cut down on those outings and start buying more veggies and fruits at the supermarket and preparing meals at home! Managing our money can even help us live healthier!
- Plan, Plan, Plan! Now, what do we mean by planning? Splurging “leftover” money on a new makeup palette, videogame, or even restaurant “just because”, is not the best option. Instead, plan your outings, meal prep in advance, and even save your money in a bank account. It will be easier to follow a written budget with your priorities and goals. And always have this in mind; as long as it doesn’t dramatically change your quality of life, making significant changes to your finances (like unnecessary splurging) will have the most profound impact on your life.
- Check In With Your Financial Plan. Every now and then, we tend to get carried away with spending and having some extra cash that we forget our original “managing our money” plan. Ask yourself and be honest when answering: Am I overspending? Am I on track with my monthly expenses? Use an app or spreadsheet to quickly determine how you are doing financially and get back to your life.
- Manage Your Savings! Many people think that managing our money is basically living on the means-end and making everybody feel sorry for us. But, that doesn’t even come close to what it really is! Try to save with this mindset: Save, Invest, Pay Off Debt, Repeat. You can even use it as your personal mantra if you wish. Start saving every extra penny you have in order to build an emergency fund (start with $200-$500). Next, invest some extra money for your future. Set yourself up for retirement by contributing to a 401(k). And lastly, pay off your debt! Whether it’s a loan or a credit card you’ve been dreading to pay, do it now! When you’re done with this last step, repeat everything each month. Save that extra cash, invest it, and knock out your existing debts.
Manage Your Money With These 5 Easy Steps Review
So, as you can see, managing our money doesn’t have to be a hassle or something only our parents do for us (seriously, it’s time you start saving your money pal). And when life gets too hard and our financial life is on the verge of a breakdown, contact Mediator Law Group. Our dedicated lawyers can guide you through every step of the way until you gain financial freedom. Contact us today for more information.
