10 Easy Money Management Tips – Budgeting Tips
A healthy lifestyle can be easily maintained at any income level. All you need to do is proper planning and budgeting. Budgeting is an art. It develops with experience, proper decision making, and management. Here are 10 easy money management tips to simplify your life and save money every day.
10. Easy Money Management Tips – Simple Budgeting Tips
How is your lifestyle? Healthy or Lavish? How much do you spend to maintain your lifestyle? Are you sure you can maintain this lifestyle throughout your life with your monthly income? What will you do in case of an emergency when you’re left with no or a little money? Think!!
Day by day, we are upgrading our lifestyle and we spend too much to even maintain it. But, it’s not possible to have a healthy lifestyle without any backup. And the backup is Savings. How much you control your expenses is more important than savings.
Why money management or budgeting is important?
Money Management or Budgeting is important for the following reasons,
- To overcome unavoidable sudden incidents in life.
- To keep yourself debt-free and stress-free.
- For the fulfillment of the goals of your life.
- To live a healthy lifestyle.
- To secure your future.
- Also, you become a confident person with budgeting.
The right use of money and the habit of saving can fill your life with happiness. You can save money by learning some simple money management tips and spending wisely.
10. Easy Money Management Tips
1. Learn and Start from Today
To be honest, I learned to save money from my pocket money when I was in school. Many of us do that but, many don’t. Right from childhood, teach your children the importance of saving money. Also, educate them, when to draw a line between spending and saving. Educate them about wants and needs. Saving right from childhood itself teaches your Children how to manage an economy in the future. So the first step to budgeting or saving money is Learning to save money.
2. Know your Budget and Expenses
First of all, you should make a plan or budget based on your daily and monthly expenses. You know very well about your expenses and your family’s expenses. So you know it very well where your money is going. Prepare a complete budget for the month accordingly. When you get your salary, first, separate a part of it for your primary needs that cost you the most. This should include rationing, electricity bill, mobile bills, and children’s fees. Likewise, take care of your other small expenses too. And try to save money by controlling your secondary needs (desires or wants). By planning your budget focusing on your primary needs you can save a large part of your monthly income. You can also control your unnecessary expenses.
3. Create a Budget Worksheet
Keep track of your monthly expenditures by recording them into a proper worksheet or diary. Keeping notes of your expenses every day will help you identify unnecessary expenses. This will also help you plan your budget for the next month and you’ll get an idea of where you can save your money.
4. Save Money in Bank
A bank is safe to keep your money than keeping them in your house. Also, you will earn a good interest rate on your money and will be able to save your money for the future. Like this, you will avoid spending money on your savings. Open a recurring deposit account in a bank if you have to save money for the future. The biggest advantage of having a recurring account is that you’ll be more focused on your money-saving thought and will timely deposit your money in the bank. Likewise, all your unnecessary expenses will reduce.
5. Quit Bad Habits
Smoking, alcohol, and eating fast food or eating outside too often are bad habits here. Let’s say a smoker spends Rs.50 per day on his cigarettes, which is Rs.15,00 per month. So you are spending yearly approximately more than Rs.18,000 on a thing which is even not good for your health. Such bad habits increase your health risks and unnecessary expenses. So quit bad habits and try to save money.
6. Try to save on Electricity Bill
If you learn to save money on your electricity bill then you can contribute a lot to your savings. The more power you save, the more money you save. Use energy-saving electrical appliances to save power. Make use of CFL or LED lights instead of normal light bulbs. Do not leave the lights and electronic appliances turned on unnecessarily. You should cut down the amount of time you watch TV. Many people keep watching TV to spend their leisure time and replace their boredom. Instead, do something useful in your free time. You can also save a lot of money using the internet. If you buy a Newspaper, you can stop that and read E-News Paper on the internet instead. Start a home-based job, develop a hobby, or read books. Also, make some extra income by earning money from the internet.
7. Take care of your Home Appliances
You should take care of your home appliances and keep them clean like TV, Refrigerator, A.C, Microwave, etc. Such things cost a lot when buying the new one. Regular servicing will keep them maintained and increase their lifespan.
8. Cut down on your Shopping Expenses
These days the internet is loaded with a lot of online shopping websites. They offer a wide range of products with great discounts. Make use of such discounts and shopping website instead of making small purchases from the stores. Apart from this, your time is also saved which you can use somewhere else. Also, whenever you go out shopping, make a list of the goods you need to buy. By doing this, you will buy the things required and cut down unnecessary expenses.
9. Invest your Money
Saving is good, but savings in the right place is also very important. You should also learn to invest your savings. Investment means putting your money in a place that will help you earn profits. You can invest a part of your savings in buying gold or property/shop. Simultaneously, your investment will grow with its increasing market value.
10. Other simple money management tips
- Apart from this, you can also save money by reducing the use of your credit card. It will save you from credit card debts.
- Instead of taking a vehicle, walk when you have to go out to a short distance. Also, we know that walking is good for health. This will save the cost of the vehicle.
- Whenever you go out for a picnic or vacations, then you can take a meal or snacks from home as the outside food is too expensive.
- Decide your goals and priorities in life and plan your expenses accordingly.
- Always think about your post-retirement life and save money accordingly.
Benefits of Budgeting
- Budgeting gives you control over your expenses and saves your hard-earned money.
- It develops a sense of responsibility and promotes teamwork with your partner.
- Budgeting saves you from financial crises, stress, and keeps you tension free.
- It keeps you focused on your goals and priorities in life.
- It will keep you aware of what you’re doing with your money and where it is going.
- Budgeting saves you from wondering at the end of the month where your money has gone.
- It helps you organize your expenses.
- You learn the art of living with adjustments in life.
- Budgeting help clear your debts and make new opportunities for investments.
- It allows you to save for unexpected costs.