7 Easy Ways to Make Yourself Better at Managing Your Money!

What you know about money management often comes from your experience, advice from your friends, parents, and wife, or a random search on the Internet.  These sources of information are sometimes unreliable and can lead to bad money management skills.

In this article, we’ll give you seven tips on how to handle your money and finances in a smart and effective way.

1. Changing the way you think about money:
Some people make money problems harder than they need to be, get stressed out about making money, are aware of their ambition, and hate material things while loving spiritual things.

After all, they often avoid talking about money just because they cannot control it. Saying that they want to give up or are unconcerned is just a way to hide their pressure and fear when they cannot get what they want.

To bring your financial situation under control, you have to understand your feelings first.  Tana Gildea, the author of “The Graduate’s Guide to Money,” tells you to ask yourself how you feel about money and whether you are good at earning, saving, and managing your money.

If you do not feel good, you cannot do it well. Don’t be dependent on money or feel guilty when thinking about it. Instead, believe that you can control your budget and be happy with it.

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” Robert Kiyosaki

2. Modifying how you talk about money: —
People often think that talking about money with others is impolite, so they keep it inside and stress themselves out. Unfortunately, it causes frustration and may lead to many other contradictions.

According to Professor Syble Solomon of the Financial Therapy Association, most couples only discuss money when there is a crisis.  Talking about money is challenging, but it is a must.  Financial clarity is a good way to manage personal finances and create good relationships.

3. Changing the way you spend your money:
To live well, try to spend a little below your ability and change your lifestyle to fit your income. This is the most important way to properly manage your money.

You should adjust your unreasonable spending to save more money for meaningful goals such as traveling or buying a house.  You can also manage your account with the help of a mobile app, a notebook, or a person who is good at money management.

4. Planning your budget:–
People may think that sticking to a budget means giving up all of your comforts and special pleasures. This, however, is not a good way; it only makes you a ticking time bomb, and you may decide to spend all of your money at once.

Instead, you are advised to keep a balanced budget, just as you would keep a balanced diet, because money management should be a lifestyle, not an afterthought.

5. Spending your money intelligently:

Determine whether or not one issue is crucial to you or not before spending a lot of money on it. Make sure you have a strategy in place and that it is one of your top priorities. If you need to rent an apartment with a nice view and set up a relaxing area at home, it means you’ve decided to invest your monthly earnings in living space.

If you tour frequently, spend your cash on visiting gadgets in preference to steeply priced furniture.  Another clever method is to divide your account into two sections, one for your vital desires and the other for your outbursts   By the way, if you do this, you might find it easier to manage your budget.

6. Saving intelligently:—
Set your financial goals based on specific circumstances to determine how much you need to save and how long it will take to achieve them.  The better you can describe your dreams, the more drive you’ll need to make them come true.

“Don’t tell me where your priorities are.” Show me where you spend your money, and I’ll tell you what they are.” – James W. Frick

7. Saving for retirement:
To stay well when retiring, you need to save from 15% to 20% of your earnings (even more than 20% if you can earn plenty of cash). Unfortunately, not many humans can do so.

At first, it can be hard to save as much as 10% or 15% of your earnings; however, if this amount of cash is subtracted automatically from your income and transferred right into a retirement account, it is much simpler.

For instance, with earnings of $50,000 per year, you set a goal of saving 10% of it, and at the end of each year, you will have $5,000 in your account.  But if you don’t perform this action, what will you do to earn $5,000?

Moreover, this amount of money will bring you profits. With the bank rate of 7%/year, for example, you will have up to $750,000 after 35 years and more than $1 million after 40 years. If you are at the peak of your career and can earn a lot of money, don’t forget to save a part of it for your retirement.

We’ve already discussed seven ways to improve your money management skills. Have you ever tried any of these methods? If yes, please share with us your experience. If not, I hope these methods are still useful to you. If you have any questions or comments, you can drop them below this post. We will respond as soon as possible.

Courtesy: Addicted to Success

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