Why do you think people who have accountants and financial consultants live a more stress free, easy life? It’s because they are safe in the knowledge that their money is being effectively managed. Money is an important part of happiness today, if you know that your money is safe, you are financially independent and debt free you are bound to lead an easy, stress free life. But how do you manage your money effectively?
Money management is all about exercising control. This article takes at look at some of these money management tricks that you can use.
· Diversify Your Earning Avenues
You may be making hundreds and thousands of dollars from your job but that does not mean you should stick to one source of income. Sticking to one stream of income is dangerous. What will happen if the business decides it no longer needs you? How would you react to that? Do you have a backup plan? Money management is about having a backup plan. Diversifying your income will help you be less dependent on one source of income.
· Plan for the Festivals
Festivals are for fun, they aren’t meant to be a burden on your finances but that is exactly what they can be if you don’t plan ahead. One aspect of financial management is about making sure that you plan ahead. Preempting the expenses that may be incurred in the future and making sure that money is saved up and allocated for it will help you keep a lid on issues of money management.
· If you buy something Use It As long as it lasts
Understanding the worth of your money is important for matters of money management. Money spent should last, that should be your motto when you go out to spend. Don’t spend money just for the sake of it. It needs to fulfill a purpose. For example, if you go out to shop for furniture, make sure you buy something that lasts.
· Use Cards Instead of Cash in Hand when you shop
Debits and credit cards are a better way to spend money than using cash in hand. With the later you are always at a risk of spending money that cannot be tracked. All the money that you spend should be recorded. Unless you are willing to write down your expenses each day, it is best if you use credit and debit cards for future expenses because they come with a list of expenses and withdrawals at the end of the month that help you keep track.
· Use Money Management Applications
Managing money on your own can be a bit of a challenge. If you are looking to manage your money effectively you can make use of a number of different money management applications available on the internet. Some of the common applications that you can use include Mint, Spendee, etc.
These are some of the many money management tricks that you should make use of if you want to save yourself from a financial rut.