6 Money Management Tips to Improve Your Finances with Questions
With unemployment at all-time high amid the coronavirus outbreak we spent money on things we really don’t want at the moment.
You don’t need a higher-paying job or a windfall from a relative to improve your personal finances. For many people, better money management is all it takes to reduce their spending, improve their ability to invest and save, and achieve financial goals that once seemed impossible.
Even if you feel like your finances are stuck in a bad place with no way out, there are a number of things you can do to create a better situation for yourself. Here are seven to get you started.
You all know life is much easier when we have control over our finances and with a good financial skill you will be able to control and manage your spending. We all know that our money impacts our credit score and the amount of debt we can end up carrying may reduce if we plan properly.
Now is a good time to make sure our finances are in order. Implement these tips one at a time to manage your money the right way and also learn to separate savings account so that you can easily separate your spending cash from long term savings. Make sure to take five minutes every day to check in with your budget.
Make a budget: This is one way to save yourself from spending excessively and unknowingly. Spend time reading books about budgeting. I never used to believe in budget until I started doing it and it so helpful, it let you know how much money you earned and how much money you are spending. It also allow you to see where you’re making waste like when you are wasting money buying unnecessary stuffs. In order to combat this, take time to make a budget. Plan out where you want to use your money. In addition to your everyday expenses, think about your savings goals for the future. You also want to find a budgeting method that works for you.
Eat out less: We are all guilty of eating out every now and then or more it’s not a bad idea though to eat outside but when it become really excessive that is when you should look into it and possibly change your habit of eating out. You can reduce the amount of time that you eat out; you can save some money doing a meal preamp.
Save lose chain: If you have like lose money $50, $70, $100 or even $200 find somewhere you can just toast the money in instead of lose all of them to unnecessary shopping and you will be amazed at the end of the months or year how much money you saved for yourself.
Make a plan: Without a plan, it is extremely easy to find yourself short on money. After all, the treat yourself logic is easy to embrace. If you say yes to too many unnecessary expenses, then you might be disappointed with your savings. You end up having nothing left on your saving. Sometimes we spend so much money without considering the impact it will have on our saving.
Invest in something: Find something that you can invest your money on and get percentage of your income. You can invest in Mutual Funds, Stock and Shares. You can get someone to advice you accordingly, you can just put your money in while you sit back and relax and see your money work for you. You can also get into partnership something that can help multiply your earning. Percentage of your income should be put into growing your money, don’t stress yourself just live your life like a minimum-less. Try to declutter like take away things that you don’t need, buy things that are only important for you.
Set money goals: If you are getting serious about your money, then setting goals is a good idea. It helps you focus. Think about where you want to be financially. There is no wrong answer but you’ll need to take a minute to think about your plans and how money would factor into them. Once you have an idea of how money will play into your life, make clear and specific goals for your money. What do you think about the post? Leave a comment below and share your thought with us.
Today we are going to ask questions that will help determine our financial strength and how you can improve yourself for better future. You can check my first article on cash flow management here before you can continue so you will have slight idea about this questions. Now if you can answer Yes or No to the following questions, your chances of living a better life of your dreams is sure. Remember your answer should be Yes, No or I don’t Know.
1. Do you know your present financial condition or networth?
2. Are you satisfied with your present financial condition?
3. Are you aware of the simple ways to increase your networth?
4. Do you have enough saving to see you through six months of normal living expense if you lose your job right now?
5. Do you save money on a regular basic?
5. Do you save money on a regular basic?
6. Have you form the habit of saving?
7. Do you have a well define documented financial goal?
8. Do you have a Bank Account?
9. Do you reconcile your bank statement every month?
10. Do you keep records of your income and expenditure?
11. Do you know how much you spend each month?
12. Do you spent less than you earn?
13. Do you have a household budget and are you successful at managing it?
14. Do you avoid major credit purchase?
15. Do you take advantage of all saving and investment opportunities that come your way?
16. Do you have any investment that’ll help to reduce your taxable income?
17. Do you diversify your investment?
18. Are you satisfied with the contribution from your investment to your total income?
19. Do you feel you have a brilliant financial adviser or team of financial adviser?
20. Do you feel you have sufficient life insurance cover?
21. Do you have a plan for your children college and university education?
22. Do you own a house?
23. Do you have a plan to retire in comfort?
24. Have you prepared your WILL?
25. Are you in control of your financial future?
26. Are you satisfied with the contribution you have made to the world?
Now here is the score guide:
If No or I don’t Know is between 0 and 4: You are in good shape.
If No or I don’t Know is between 5 and 10: You are on the right path but you need to improve.
If No or I don’t Know is between 11 and 12: You are on a weak point, something have to be done.
If No or I don’t Know is between 13 and above: You need help because poverty is knocking on your door.
That’s all for now, let us known what is your take on this by using the comment button below. If you have any question I promise to do my best to answer you.
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