6 Ways to Improve Money Management


woman stressed about money

If you are not a budgeter, managing money and a budget can seem intimidating. While looking at the big picture of budgeting may be daunting, there are several simple steps anyone can take to improve their money management skills.

 

Benefits of Money Management Skills

Improving money management skills is extremely beneficial long term. Proper money management skills help with achieving goals, reducing stress, and preparing for retirement.

 

Money Management Improvement Steps:

  1. Determine Priorities. The first thing to do is determine priorities. After determining what is needed to pay for necessities; housing, food, hygiene products, car payments, etc. decide what else matters most. No matter the priority, the principle is the same: determine how important or necessary it is, then decide how much money it is worth to put toward it each month.

  2. Set Goals. Setting  a budgeting or money goal gives purpose to budgeting. Set a goal that is attainable and perhaps even set a reward for yourself for when you obtain that goal. If managing money with another person, make sure both people are on the same page with these goals.

  3. Know Your Income. Knowing the details of an income including taxes, 401K percentages, etc., helps us better plan each dollar. It also eliminates stress and helps reduce paycheck confusion or unwanted surprises.

  4. Plan to Save. Interested in saving long term? Make saving a priority. Plan to save a percentage out of each paycheck, no excuses.  Consider saving with the mindset of paying yourself each time you get a paycheck.

  5. Keep Track. Track purchases with a paper and pen, or use a money management app. Set aside some time each week to look over transactions made in the past week, and be aware of what is being spent.

  6. Reevaluate and Personalize. After tracking for a while, take a look at spending trends. What type of purchases are being made the most, and which are being made the least. Evaluate where you could save a little more, and what areas the budget is thriving. Adjust plans, goals, and/or budgets accordingly.

 

By Learn Accounting Free | 2016-07-07 20:41:22  | Uncategorized  | 0 Comments



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