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14 Tips for Managing Your Money Better

tips for Managing Your Money Better Anyone wanting to better their finances must start by putting together a plan and actively managing what’s in front of them. Knowing your financial situation, how much money you’re making, and what money is coming out makes it easier to hit your financial goals. Basically, managing money takes the right tools and discipline.

For some, gaining control of their finances takes years because they lack fundamental management skills or have yet to enact a plan.

No worries – I’m here to help! I’m writing about this topic because I’m a leading behavioral change expert and bestselling author – and a columnist for both Oprah and Psychology.

I’m also the founder of the therapist recommended program The Tweak a Week Online Course –  which helps people to make small, positive changes in their habits that lead to big results.

Basically, I’m a research geek on understanding human behavior – so I put together this article with tips for managing your money better.

14 Money Management Tips for Managing Your Money Better

Here are tips for money management.

1. Make a Balance Sheet

List your income, expenses, debts, and assets. To start, create a balance sheet for your financial situation so you know what you’re working with.

2. Track Spending

There are budgeting apps that track your spending and transactions. This can be extremely helpful in understanding how money is spent and whether that spending is worth it. As you’ll discover, small purchases add up.

3. Review Your Credit Report

Your credit score has everything to do with money management. Get a free report and ensure there aren’t any unknown debts or issues that must be resolved.

Work on improving your credit by paying bills on time, clearing away debt, and not submitting too many credit applications. This will help your current and future ability to qualify for loans and receive money when you need it most.

4. Plan for Short-Term, Medium-Term, and Long-Term

Outline some goals. Short-term goals are for six months. Medium-term goals are for 2-5 years. Long-term goals are for ten years and beyond, such as retirement. After setting your goals, determine what it will take money-wise to get you there.

5. Start Savings Accounts for Financial Goals

You are buying your first home, saving for a car, and buying a special item. Start a savings account for each savings goal. Set up your budget so that a part of what you make monthly is put into each. This will keep things moving in your favour.

6. Have a Realistic Budget

When planning a budget, make it realistic. If it’s not, you won’t stick with it, and failure doesn’t feel right. Pay extra attention to realistic numbers for your income/expense split to stay motivated.

7. Save and Pay Off Debt Simultaneously

Don’t just cover your monthly expenses and pay down debt with your budget. Save as well. A strong budget will help you save money and pay down debt at the same time. This puts your future in the best possible position.

8. Use Payday Loans When You Need

If you’re in an emergency or experiencing a financial setback, you may need immediate cash to get you to your next paycheque. Payday loans come in here. They can provide a cash advance on your next paycheque under fair terms. Have a payday lender in your back pocket if you ever need emergency cash not readily available.

9. Have a Reward Waiting For You

tips for Managing Your Money BetterFor many people, budgeting means having little to spend. Set aside some money for a reward bi-weekly or at the end of the month. If you hit your goals, enjoy a delicious meal or something special but affordable. It allows you to spend some money and have some fun.

10. Prioritize Debt Repayment

The faster you pay off your debt, the less interest you pay. If you can spare any extra money, put it towards your debts. In the long run, you can keep more of your money and be closer to financial independence after your debts are paid.

11. Increase Your Income

Money management includes income. If you are still looking for a better income, look for ways to increase your income. Ask if there is overtime available. Consider a second job if your schedule allows it. Consider investing in education to get a higher-paying position.

12. Look at Ways to Grow the Money You Have

With money, you can make more money. There are many ways to do this, including investing in stocks, purchasing real estate, or even finding a savings account or bank with a higher-than-average interest rate.

13. Reduce Living Expenses with a Roommate

Accepting a roommate into your living space or home lowers your rent or mortgage payment. This is an excellent example of creating more available money by reducing your expenses as much as possible.

14. Start an Emergency Fund

Set aside a percentage of every paycheque to be automatically deposited into an emergency fund savings account. Cap off your emergency fund at six months’ living expenses. This way, you’re financially protected in an emergency and have the financial support to keep going.

Recap: Money Management Tips

If you want greater financial security, follow these money management tips and you’ll be managing your money better quickly! Want further support to better handle your money? Learn more about my private one-on-one Mindset Mastery Sessions here.

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