Between the pressure of start saving early, student loans, and dividing expenditure from the paycheck to paycheck lifestyle, the thought of money management can seem a bit exhausting. However, it is not entirely impossible. Check out these money management tips.
Set Clear Goals
Not all spending goes in to baubles and shiny toys. Money can always be easily frittered on expensive packaging, restaurant meals, etc. The first thing that setting clear goals does for you is that you start thinking twice every time the impulse to buy something you don’t need comes up. If you need to save, you can always go frugal, but that does not mean living out of a cave. It is always the small things, the small expenditure that if avoided, can help you meet your money saving goals.
Always Track What You Spend
You need to save your receipts not just for taxes, but for reviewing your own spending patterns. If you started working and are only getting accustomed to your new paycheck spending habits, this is the best time to build a good habit of dividing your expenditure. You will be surprised how much of your hard earned money just disappears on fancy coffee, that pack of gum that goes stale in your bag because you bought it just in case, and the subscription you bought but don’t use anymore. Evaluate where your money is going, and eliminate any unnecessary expenditure.
Make a DIY Budget Plan
This is super handy. Make a plan where the necessities make the top of the list, like utility bills, food, rent, loan payments etc. Below this should come miscellaneous expenses. You can calculate how much you are likely going to be left with the salary that you get, then every time you are out shopping or in an extravagant restaurant you have a mental limit of how much you should spend.
Credit cards can be a great thing, but having too many of them just because you hit the limit on each can be a major way to see your finances flop. The only thing you will be left with would be feeling frustrated at the huge credit bill that you receive every month, and not being able to pay that will reflect badly on your credit report.
Not Enough Money
The best way to know that you are managing your money right is if you are left with some at the end of the month. If you find that your necessities leave you without a penny, it is time that you find another job or a roommate so that you save some cash on the rent. Some people do not realize that it may not be their money spending habits, but the money they get compared to the necessities they have to fulfill. Again, without reviewing your financial situation you can never know this.