When you manage your money, you would have a better look at your financial situation now. It allows you to monitor your income and your expenses; thus, you would know when you’re overspending allowing you to avoid it. Doing this would also allow you to save money, which is crucial, especially during these times. If you haven’t done anything related to budgeting and saving, it’s time for you to consider it.
The Advantages Of Budgeting And Saving Money
Besides staying afloat, you would also live comfortably when you start to manage your finances more efficiently. You also have to remember that this is essential so you can save in case any emergencies happen. You would want to have some savings in your bank when the rainy days come.
Additionally, budgeting would allow you to save for your future. Then, you can also think about other ways to earn more money, like becoming an entrepreneur or pursuing your dream career. You might afford to spend on these life goals without any second thought.
You can invest in good camera equipment to become a travel blogger or take a wood chipper training course to become an arborist. Whatever your plans are, they wouldn’t seem that impossible to achieve with some budgeting skills and some savings.
Money Management 101
Although not many people consider money management as a life skill, you need it to get further in life. If you think about it, it’s a proper skill that people need to reconsider and give more attention to as it can make or break your future.
To properly manage your money, you need some determination and discipline. Here are some things you can give a try that will surely help you to spend and save your money more wisely:
Practice the 50-30-20 rule
The 50-30-20 rule is a budgeting technique that allows you to allot your income into three essential parts. The 50% of your income will be for house rent, utility costs, food, gas, and other things you need to spend for. The 30% should be for what you want, like a new pair of shoes, a shirt, or maybe even a book, while the 20% should be for your savings.
In doing this kind of rule, you can make sure that you have money to pay for things you need and want while still saving money. It is essential to have some money for the expenses and the rainy days, but you shouldn’t deprive yourself of some simple pleasures, of course.
Practice the 30 Wears Test
The 30 Wears Test is a technique that Livia Firth devised. It is a way for you to stop buying things that you don’t need by asking yourself if you will use or wear an item you’re thinking of buying for a minimum of 30 times. If it’s a no, then it means you should reconsider buying it.
Although the 30 Wears Test is a technique conceived to address the overproduction of clothes to meet people’s demands and the clothes that end up in landfills, it is also a helpful way to prevent yourself from any impulsive purchases. So, the next time you see a new shirt or shoes you are tempted to buy, do the 30 Wears Test first to see if you really need it.
Practice using a budgeting app
Using budgeting apps allows you to manage your finances better. It gives you a better insight into the money you earn and spend to adjust your lifestyle accordingly. Budgeting apps can be connected to your bank accounts and credit cards so you can keep track of your money in real-time without having to wait for your statement or log in to your online banking.
Depending on what you’re looking for when you use a budgeting app, one would suit your needs. Some budgeting apps can be used if you want to avoid overspending, and some when you want to have more savings by the end of each month. There are also budgeting apps for couples, and some apps give you insights into your overall financial situation.
Save For The Future
Money management is an overlooked skill by many people, but once you learn its importance, you would want to make sure you manage your finances as much as you want. Additionally, like most life skills, you need money management to succeed. Spending on things you don’t need and not having any backup plans might hurt your future. So, while you still have the chance, start looking into managing your money today.