These money managing tips are going to help you soar into wealth! These tried and true methods for managing your money are how you will become successful, one dollar at a time.
Saving money can seem like a monumental task, but there are some fool proof ways that you can save money without feeling like you’re sacrificing. Money management can have some fantastic results. I was able to get out of $67,000 of debt in 15 months because of these money managing tips!
The hardest part is getting started! Each of these tips is easy, and it’ll only get easier. Once you develop these as your own habits, you’ll be well on your way to managing money the way that you’ve been looking to. And these money saving tips are here to help you get started.
If you’re looking for the best money managing tips, look no further!
Your Money Managing Tips
1. See where your money is going.
It might sound weird to say this, but if you’re not tracking your spending, then you’re not managing your money. YOU decide where your money goes, don’t let money decide how you live.
A lot of people suggest switching straight to cash. It’s true that using cash really shows where your money is going. But the most important thing you can do is track every cent going out. This is where you’ll see the holes in your spending.
2. Make a budget
Now that you have your expenses list laid out, make groups of each expense. Things like rent/mortgage, utilities, groceries, internet, eating out, and fun money are a few categories that are popular.
It’s REALLY important that you create a budget that you’ll be able to stick to. If you see that your “fun money” category is a little out of control, then you can work to cut back. But make sure your cutting back in each category is realistic.
3. Cut Expenses
When you look at your expenses and make a budget, you’ll probably need to trim some of the fat. There are TONS of budgeting tips out there for how much you should be spending in the most popular categories, but depending on where you live, you might be faced with going outside of those suggestions. One example of this is rent/mortgage.
A good rule of thumb is for your rent/mortgage to not exceed 25% of your take home salary. If you’re stuck in a specific situation and your rent is over 25%, don’t worry! Just make adjustments in the rest of your budget, and form a plan to get it around that golden percentage. If you’re in a place that you LOVE and don’t want to give it up, then look at other expenses that are lower priority to you and cut there.
Another great example is subscriptions. A lot of people tend to stack up on Netflix, Hulu, Disney+, to name a few. Usually just one or two of these is fine. It might sound like a lot of sacrifice, but it’ll be completely worth it when you add up how much you’ll be saving in the end!
4. Never miss a payment
If you’ve ever missed a payment, then you’ll know that the repercussions are not worth it. It’s pretty brutal to owe something while you’re living paycheck to paycheck. The salt in the wound is when you owe more because you have to now make late payments. Ughhhh, it’s the worst!
By setting a budget, you’ll help mitigate this because you’re telling your money where it should go. Once you’ve given yourself the control to manage your money, you’ll be shocked to see how you happen to stretch more out of each dollar you’ve earned.
5. Save up and pay cash
No, not literal dollar bills. Unless that’s how you want to roll. The most important thing is to NOT take out loans to pay something. Paying interest on your debt is a good way to stay in debt and continue owing. In the long run, saving up and paying cash for whatever you’re trying to buy is cheaper.
Another reason saving up and paying cash is beneficial is because it’ll make you determine what is worth spending on. Spending your own money, in full, really makes you realize how much things cost. When you borrow money, it’s really easy to cushion the blow of how much things are because you’re paying over a span of months, or even years.
Instead, be save the money and let it accumulate in your savings or high yield savings with interest. When you go to buy your item too, it’ll be even sweeter knowing you earned it and own it outright.
6. Invest, Invest, Invest
Now, these are your money managing tips, but if you’re in a certain phase of your journey then you might want to wait on this one. If you’re curious about investing, you should definitely read up on it no matter where you are in your financial path.
First thing’s first, look at your 401(k) plan. If the company that you’re working for is doing company match, even better! Dave Ramsey states to invest 15% no matter what the match is, and the match is just the cherry on top.
The next thing you can look into is your HSA, which has incredible tax benefits and investing options. Another great investment is an IRA and a High Yield Savings Account. Because of inflation, the value of the dollar is going down, so a way to mitigate that is to find ways to have your money grow. These few strategies to look into will greatly help!
7. Save Your Money
It’s incredibly important to save up money. You’ve probably heard time and time again to have money in savings, but how much?! There are a few ways to determine how much of a savings you should have, but generally, you just need a good gut check.
If your income were to be gone tomorrow, how many months could you survive with the expenses and savings you currently have? A good rule of thumb is having 3-6 months worth of savings for your “scorched earth” finances.
8. Open some bank accounts
This might get some raised eyebrows, but trust me! It works!
Having different bank accounts and savings accounts for different things helps manage money better. Yes, you’ll have your income going into one account, but where you delegate your money after that is really important.
Financial success can be had by opening up a checking account, savings account, investment account, and a high yield savings account AT LEAST. I take it a step further and have different accounts for my various categories that are budgeted.
Why?
Because my travel budget can grow with interest while it’s sitting in the bank, whereas my checking account doesn’t gain any interest. Another example of this is the high yield savings account that is a pinch harder to access. So that savings account can be for those expenses that you don’t plan to need immediate access to.
9. Get out of debt
We’ve already touched on this a little bit, but paying cash for things instead of going into debt to buy them is such a smarter route for your finances. The biggest mistake you can make is using your income to pay interest on debt. That’s a great way for your finances to get out of hand.
Getting out of debt also gives you a different mindset. By not being in debt, you actually own everything that you have. It’s a whole different feeling!
Related Article: Top 5 Get Out of Debt Tips
10. Set goals
Making a budget isn’t enough. You also need to figure out where you want to go. If you’re in debt, add up all of your debt to see how far you are out from being out of debt. Also, make a goal for how big you want your savings account to be.
The BIGGEST piece of advice I can offer here is to be realistic with your goals. Don’t do something that is unobtainable because that’s where failure happens. Make goals that might be challenging, but they’re in reach.
Once you’ve set these goals – and be VERY specific about what you want – you’ll start to see your money playing out for you. The caveat is, your money will play out for you IF you work with it.
11. Check in with your money
Just like any relationship, your relationship with your money takes time, and it needs your attention. When you first start out, it’s important to check in on your finances daily. Dare I say, obsess over your finances.
When you’re learning about money management, you need to form a strict habit. You need to see if you’re on track with your budget and give yourself a gut check. Are you spending too much or are you under budget? Neither of these options is great because the best answer is to be the goldilocks of budgeting and for you to be right on budget.
12. Manage your income
It’s not only important to look at your outgoing expenses, it’s also imperative that you look at your incoming finances as well. Sometimes when you’re forming your budget, you’ll see how much you’re making after your expenses are taking out (and obviously after taxes).
If you don’t want to cut any expenses, or you just want to make more money, then you should consider a side job or side hustle. There are tons of ways you can make more money. One of my favorites is selling items online. Things like selling clothes online or selling items on Facebook Marketplace are two ways I like to bring in income on my own hours.
You can also negotiate your income at your current place of work or look for another job. Yeesh! I know that’s a lot to say, but just consider it. At least look at what your job title makes at other places to see if you’re being fairly compensated. If you are being fairly compensated, then maybe consider taking on more responsibility where you work so you can get paid more.
As you can see there are tons of options here!
Related Article: How to Sell on Facebook Marketplace Like a Boss
13. Shop Around
Making any type of purchase, whether it’s big or small, can add up on your bottom line. Make sure that you’re getting the best deal by shopping around. I think it’s safe to say that we’ve all made a purchase that we spent too much money on it and possibly regretted it. Don’t do that anymore! Spend time shopping around.
14. Don’t Give Up
It can be very discouraging to start, but once you do start managing your money, it will come second hand to you. Don’t give up on your goals. Be sure to stick true to what you want, and don’t settle!
Conclusion
These money managing tips are here to help you make the most of your income! Never forget the power of controlling your money. It’s truly life changing! I hope these money management tips give you ideas to soar. In the name of wealth, health, and savings.