Proper money management does not have to be complicated or time-consuming. There are definitely some easy ways that you can tweak your financial picture to make the most of your money. Today, I will be sharing some of my best money management tips. Personally, I have been following just about every single one of these.
Smart Money Management Tips
1. Create a budget!
Create and stick to a budget that works for your family. Figure out what your non-negotiable expenses are (rent, transportation, utilities, etc.). Then figure out what extra amounts you spend each month. Find ways to cut those costs and put more money into savings. Keep track of your spending throughout the month and adjust accordingly to stick to your budget.
2. Cut back on unnecessary costs!
We all have our guilty pleasures. Maybe it’s that cup of mocha frapuccino you pick up every day that costs around $5. Maybe it’s that growing collection of pricey baseball cards. Whatever your interests & habits are, try to curb your expenses and stick to costs that make sense for you.
3. Consolidate any loans!
If you have a number of different loans, it’s a good idea to consolidate your loans. Make sure that the new loan’s interest rate is not higher than the ones you are currently paying. Of course, make sure to practice smart money management so you don’t find yourself in any additional debt. Always understand the terms and conditions of any new loan you acquire. Use a site like this one that will conveniently list out different lenders, along with their terms (interest rate, monthly payment, etc.)
4. Monitor your credit!
Did you know that your credit report (and credit score) are evaluated any time you’re trying to get a new loan, open a new credit card or even begin utility service? Make sure your credit report is accurate and up-to-date by signing up for a free service to monitor any new line items. It’s an important step of proper money management.
5. Automatically contribute to savings!
If you have a savings account and a checking account, you can set up automatic transfers between the two to effortlessly build up your savings. Simply create a recurring monthly transfer of $X from checking to savings and at the end of the year, you will see your savings account grow. Bonus points if your savings account has a high interest rate.
6. Shop wisely!
When picking up essentials from the store, be sure you are making the best choices possible. Download apps onto your smartphone to help stretch your dollar farther. There are some apps that will let you compare prices between different retailers to help you find the best price. There are also other apps that will let you earn cash back for groceries and other everyday expenses.
7. Work toward goals!
Sometimes it’s important to set specific, realistic goals to feel confident about your money. Do you want to have a certain dollar amount in your savings account by a certain date? Are you saving for your retirement? Need to send two kids to college? Regardless of your particular financial picture, write out and delineate what your individual financial goals are so you can work toward them.
I hope these tips have given you some insight into proper money management. Now I’d love to hear from you:
What are your financial goals? What is your best financial tip?
This post is sponsored by Debt Consolidation Loans. All opinions are mine alone.