Knowing how to manage money is an essential thing in a society gifted in consumption. I share in this article five practical ways to manage your money. If you’ve already had difficult ends of the month, then you know how important it is to know how to manage your money. I gathered for you the best keys to financial management.
- Learn to say no!
It’s amazing how we all have many needs that we are unable to meet. We must therefore learn to say “no” to things that we are sure will hit our finances hard and prevent us from achieving our main goals.
- Have a budget!
The budget is important and essential for anyone trying to learn ‘how to manage money.” Indeed, it is the foundation for the efficient management of finances.
Your budget allows you to have a clear idea of what you earn and what you spend or have to spend. It allows you to have your feet on the ground and prevents you from embarking on costly adventures.
One important thing: it is one thing to set a budget. But the most important part is to respect it.
- Educate your family
Effective money management cannot be done without the involvement of everyone. Educate your children about your values regarding money. Teach them to save energy. Teach them how to manage finances. By sharing your values and priorities with members of your family, it will be easier to establish a reliable family budget – and to follow it.
- Save each month
You cannot find out how to manage your money, while ignoring the importance of savings. Your savings keeps you safe even when you face the unexpected (job loss, illness, accidents, etc.). Take the good habit of saving money every month.
- Pay cash – Avoid consumer credits
If you’re like most people, you probably make the mistake of getting consumer credits. These kinds of loans are pulling you down. When you want to pay for consumer goods, make the effort to always pay cash. If necessary, save money until you get the money for the purchase of your property. This saves you from paying interest and charges.
- Earn less to work less
Today, we must work more and more, just to pay the costs of our work. You have to pay the car that you use to go to work. You have to pay the ready-made meals. You have to pay professionals to tinker at your place. You have to pay the nurse who keeps the kids while you are at work, etc.
What I suggest is to look for alternatives to jointly reduce costs and work time, while living a more fulfilling life. Working less means taking time to live! But working less is also earning less. And yes! So we will try to reduce spending, to give us the power to reduce our working time, and without negatively impacting our quality of life.
Managing Money is essential to ensure financial security. Learn to say no! Set a budget! Share your values and priorities with your family. Save regularly and avoid debts and credits, and save with coupons especially for consumer goods. Do you have other tips on how to manage money? These are not exhaustive!