Smart money management and use isn’t about having high-risk high-return investments, it’s not about having a long line of zeros in your bank account. Whatever the circumstances, you can spend and use the money you earn more rationally.
Have you ever wondered why you spend so much money on this outfit, on this meal, on these entertainments? Reading the following article will help you understand the basic steps to financial stability.
Steps To Manage And Use Money
1. Set a financial goal
Understanding your current situation will help you build a budget that fits your needs. Are you saving to buy a pair of shoes, a new car, or using them to pay off your mortgage? Make a full list of the priority tasks that need to use your money on a piece of paper, from which you will set an appropriate financial goal.
2. Monthly income statistics from all sources.
Let’s start calculating your total income for a month to balance income and expenses. You need to make sure that all your expenses will not exceed your personal income to prevent emergencies that need to use bac money.
List your monthly fixed expenses. Those expenses can be house, phone, car, daily meals, spending money with your lover and other expenses.
After calculating, you will probably be a little startled.
4. Look for possible savings.
Then review all the expenses that you have to spend by day, by month. Don’t ignore the small things like car fare, iced tea, coffee .. because compounded monthly is also a big number.
You may discover wasted money that can be saved without your knowledge.
5. Track your spending.
You can list your expenses on paper, in excel or in personal financial management software on your phone. Tracking your daily spending will help you avoid overspending, having to eat instant noodles 3 meals a day at the end of the month.
6. Set savings goals .
Saving is easier if you know exactly what you’re saving for. Set specific goals such as, emergency risk, home purchase, home repair, retirement, travel, etc. Obviously setting savings goals will help you have more motivation. more force.
7. Invest in yourself.
Of course, don’t forget that investing in yourself is the number one priority. Spending money and time buying a few good books, attending expert courses will help you gain more knowledge, increase your income in the future.