When it comes to “money management”, it has different meanings for different individuals. Some people may think that managing money means generating monthly income, budgeting expenses, and savings to meet monthly needs. On the other hand, some may believe that managing money just means keeping a few bucks in wallets and carrying cash while shopping.

What is money management – what does it mean?

In this article, we’ll learn what it is, how it works, and some of the best practices. There are some people who hire money management services. But if you want to learn how to manage your money in some easy ways, this article is for you!

money management
money management photo: from Aekotography/Shutterstock

Money management can help you improve your financial

Your financial well-being starts with you and no matter what your financial situation is, you need to be aware of your spending habits. The key is to think before you start to spend your money, sometimes we spend too much on unnecessary things and when you realized again, Uh-oh you have an empty pocket…

Money management tips that work well

If you can not manage your daily expenses by yourself or have no money management skills, don’t worry! here are 7 great tips for money management:

1. Make a budget to manage money

You can not master your finances unless you know how much money you have and where you spend it. So the first thing you wanna do is to create a budget. It’s pretty simple: list down expenses and income, and see where you can cut back. But you have to remember that making a budget is easy, but sticking to it is not.

2. Spend less than what you make

If you spend more than your income, that would lead to bankruptcy or even debts. So make a list of things that you spend money on and start removing those items that are unnecessary like a daily Starbucks coffee or new clothes for your wardrobe. You’ll be surprised to see much money you can save simply just by living a little below your means.

3. Use money management apps

Another way to control how you spend your money is to track them! There are so many applications out there that can help you track what you paid for. whether is cash or credit cards. This can make you know how much you spend and be more careful about spending money. Check out 5 Best Apps For Budgeting For Control Your Spending here.

4. Create an emergency fund

Emergencies like a sudden debt or a medical expense can show up at any point in our lives and we have to be prepared for it. That’s why you have to create an effective emergency fund to cover your unforeseen expenses. And let’s say, an emergency doesn’t show up, it’s still your money! You can do whatever you want with it, invest it, go on vacation or buy a car!

5. Set financial goals

Financial goals include saving for children’s education, buying a home, retirement, and even your next vacation. This is where you can set both long-term and short-term savings for your future self. When you start saving, you are managing your money for your future needs.

5. Keep tweaking your budget

After you list down your expenses and income, see how can you improve them. You can change your budget based on your future lifestyle and spending habits. Let’s say, you are getting married or having a child, so you need to add more money for additional expenses. Make sure to keep tweaking your budget until you find the sweet spot so you can maximize its use!

6. Pay off your debts ASAP!

Debts are the biggest hurdle when it comes to managing your money. If you are in debt, don’t leave it hanging. It should be paid off as soon as possible because some types of debt have very high interest. Which will increase the debt if you left it for too long.

You can tweak your budget to cut off a few things like subscriptions so you can save more. You can also sell a few items that you don’t use to raise cash for your debt repayments. The faster you repay your debts, the more time you will have to save and enjoy your money.

In the worst-case scenario, you should negotiate with creditors to request a reduction in interest. especially credit card debt, such as debt restructuring.

money management
Photo: TBIT/Pixabay

Conclusion:

  • Money management is very important for anyone who has some kind of responsibility. It will help you avoid making financial mistakes and going bankrupt or falling into a debt trap. With the good money management practices that we mentioned above, you can plan and know what to expect and whatnot. You can sleep better at night without worrying too much about money problems.

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These are some of my favorite blogging tools

Thank you for reading this article. Anyway, for those who are looking to build a blog and wonder which tools you can use to build a blog or a website, I highly recommend these tools below.

Web Hosting: if you just start blogging I recommend you to get a Bluehost since they are easy to set up and quite cheap. The price started at US$2.95* but if you plan to scale up your website in the future, I prefer Cloudways more because Couldways works better once you get high traffic to your website. you can switch plans easily as well and they also offer a free trial with no credit card required

Domain Name: Most of my websites bought domain names from Namecheap, I did some research before I bought them and most domain names from Namecheap are cheaper than other websites.

WordPress Speed Plugin: I currently using this plugin and I’m really happy with the result. WP Rocket speeds up my website to rank a good score. Highly recommend!

WordPress Theme & plugin: For some of you who prefer to use a theme for your website, personally I like ThemeForest (my website uses a theme from here) but in case you are looking for other options such as themes, landing pages, funnels, including creating your own online courses please check out ThriveThemes

Email Marketing Service: Currently I’m using GetRespond which is easy to use and you can sign up for a 30-day free trial. The cheapest plan stat at only US$19. No credit card require so if you don’t want to use the service after the free trial period ends, you are good to go.

Graphic Design: If you don’t have graphic design skills I recommend using Canva Pro. They have so many templates which are easy to use and it only costs you US$9.95 a month.

Stock Photography: I recommend using 123RF or Depositphotos. Both sites offer good-quality photos. For Depositphotos, their plan starts at US$9.99 per month for a 1-year subscription.