In whatever context, whether family, personal or corporate, money management should always be given utmost priority. Taken for granted, all plans and vision are likely to amount to nothing. Because truth be told, your financial situation, while it may not be the end all be all for some, its impact on one’s future is inevitable.
One day millionaires are nothing but that. It’s a waste of God-given resources to be given an opportunity to earn and make money and spend it all in a day or two. Financial stability is the key to living life free of anxiety. We all have this moral obligation to ourselves and the people around our sphere of influence that we mature in this department. Living a life where you have control over your finances and not letting your bank account (or lack of it) control you.
1. First thing you might want to consider is the ENVELOPE METHOD. Appointing a number of envelopes for each category of expense does not only give you an idea what eats up most of your budget but will also allow for you to know your limits. While the old school way would do this using a number of actual envelopes for each expense, you may also consider opening different accounts specific to the category or even a worksheet with a list for each category. You may look into what best suits your lifestyle that would prove to be sustainable for you to work on for the long haul. The key is consistency.
When income that comes in every month do not get its proper allocation, the default is to spend every single penny. This is why most people do not have savings and would almost always have something to spend on “for as long as there is money left.”
2. SPENDING LESS THAN YOU EARN. Is a good rule of thumb that is worthy to incorporate, if you haven’t yet. The prerequisite here is to have the previous tip of having an envelope method in place where you can of course only allocate from your earning. When there is no income, there is nothing to allocate. Plain and simple. Identify the figures that come in and making sure there is no deficit.
3. USE FINANCIAL APPLICATIONS. Everyone these days are using some kind of technological device. We might as well make good use of it by making it work for us by using applications that have potential to make life easier for us. Financial applications like Mint, Good Budget, Prism, Every Dollar, are just a few that you may want to check out and looking into which best would fit your lifestyle. This may also replace the previously mentioned “envelope method.”
This is also a good rule of thumb to consider if ever you plan to get a personal loan online. Since this is also a short-term option for those who may be struggling with bad credit. Taking note along the way that becoming responsible for obligations, whether that’s finances, paying off a debt or otherwise is always a good thing to prioritize. Making sure rules and discipline are established will pave the way to your goal towards financial independence and good budgeting.
These handy hints and tips are just a few things to consider towards better financial management.