Managing your money can be a very private affair; after all, your finances are your own, and you can do what you want with them! However, when it comes to managing money well, it can be a task that’s hard to take on alone, and there’s a lot of advice out there for you to take note of.
And that’s why this post is here; we’ve collected together the money management tips everyone should know about below for your convenience. If you’re someone who struggles to keep track of your finances, whether they’re incoming or outgoing, here are the top three things you need to know.
Spending Needs to Be Tracked!
Spending is something that always needs to be kept an eye on, and not just in the saving-your-receipts kind of way – you need to use these constructively whenever you get one, to ensure you know what’s going out of your account.
Because when you track your spending properly, you’ll be able to correctly and quickly assess how much you’re spending month by month, and where that money tends to go. This will help you to cut back if need be, or scrape the pennies into a better place, such as your savings account. It’s just another way to stay in touch with yourself!
Savings are the Most Important
When you’ve got savings in the bank, you have a literal safety net to rely on. And because of this, it’s always important to be putting a bit of money away each and every month, if you have the chance to.
Spending on bills and regular expenses comes first, but savings should be second before you decide what disposable income you’ve got left. Try to put away as near to a fifth of your paycheck as often as possible, and try to keep about 3 months worth of income in savings at all times, just as a general rule. When you follow these, you’ll have a very healthy emergency fund to work off of.
Investment Takes Time
And finally, when it comes to making smart investment decisions, you need to take your time and invest here and there, over and over again. Because, as the financial manager Wayne Blazejczyk would say, the more fingers in the more pies you have, the better! So, if you have only about $500 for investments right now, don’t put it all in the same place.
Because investing in the right way can take many forms for many different people, but most agree that you need to be diverse in your efforts. You need to have a lengthy portfolio that has a lot of different stocks on it, even in low amounts, to ensure a dip or crash won’t mean you lose everything at once.
Money management can be a difficult thing, but it’s something you’re perfectly capable of! Just use tips like those above to guide you, and always keep an eye on your finances, no matter what they look like.