You may be surprised to know why I am writing this article. You might be thinking you already know so much about money management and there is not any need to learn further.
Well you might be right but you always learn more when you read a new article.
I have lived in cities like New York, London, Paris etc and I know how difficult is to live there.
I was able to survive in these cities because I learned to save money very early on.
I want to share some of the money management tips with you that I learned living in these cities so that you don’t make common money management mistakes.
Here are 20 of them-
1. Always Plan Your Budget on Daily, Monthly and Yearly Basis
Start with planning your budget ahead of the month. You should plan your monthly household budget every day.
Here you save a lot of money because you can always cut extra spending which is not needed.
If you already know what you need in future & if you plan for it in advance (e.g. booking holidays, buy cloths, electronics items at discount seasons) then I am sure, you will save a lot of money
2. Partner Up With Your Husband or Wife
Always work in tandem. Partner up with your spouse and share all the details about your daily and monthly spending.
You can always consult each other before you are buying something that is too expensive. By doing this you save a lot of money each month.
Sometime because of impulsiveness you may buy some unwanted junk but if you talk to your partner, he/she can give you the right guidance.
3. Have a Joint Account with Your Spouse
Adding on to my previous point you can have a joint bank account with your spouse if you like.
Having a joint account will allow either of you to track all your expenses. You work closely and manage your money much better.
4. Spend from One Account and Save the Other
You can also create two accounts. One is for spending needs and other one is for saving.
You need to use right account for right purpose. If you want to spend on something then use a particular account and for saving use another one.
You can also open a share account if you believe in philanthropy. This is also a great money management tip.
5. When it Comes to Debt Always Be on Top of it
Pay off all your debt. In fact this is 101 of managing your money. If you start accumulating debt then you are not going to manage your finances properly.
Pay all of your debt on time and save yourself from trouble.
6. Smartly Exploit all the Tax Loop Holes (legally)
I do not want to suggest anything that is illegal. Always find a way where you can get tax rebate or break.
You can consult your accountant and he will tell you simple ways to avail tax breaks.
7. Save on Insurance and Health Care Plans
There are dozens of insurance as well as health care plans in the market. You have to choose one that covers your entire family and you end up paying less.
Insurance and healthcare is where people tend to neglect and they end up paying more.
So be smart while choosing a plan.
8. Be Frugal While Using a Credit Card
Credit card is where everyone goes wrong. It is because you are always tempted to spend more.
Never do that because you will be accumulating a lot of debt. Spend according to your needs that you can pay back.
Specially do not give it to your children.
9. Be Smart While Buying Properties
You do not buy property every year. Usually people buy a house once in their life time. So before you buy a house enquire everything from property tax to brokering charges.
You save a lot of money every time you buy a property. So don’t ignore it.
10. Invest Your Money in Stocks and Securities
Money makes money. Stocks are perhaps the best way to invest your money.
However people do not know where to invest. If you are investing in mutual funds then the returns are great and you make most of it.
You can consult your bank or a financial advisor and ask more about trading and investing money.
11. Always Review Your Annual Credit Report
You can never manage your money unless you review your annual credit report.
This will give you an idea how you are doing when it comes to your finances. What is your credit score? Is it poor, average or excellent?
Credit report will help you to understand where you are going wrong.
12. Pay All Your Bills Electricity, Cable, Internet, Phone, Gas etc on Time
Now we move on to small things that you can do but you tend to neglect it. You can pall all your bills electricity, cable, internet, phone gas etc on time and avoid late fee.
Many of the companies give 1% to 5% rebate if you pay your bills well before due date. By doing this you save a lot of money every year.
13. Do Things as Much as in Home
There are things that you can be done in home instead of going outside. Take two examples of laundry and eating out.
You can do laundry in your home rather going for a service that charges you too much. You can always prepare a dish in home rather going in a fancy restaurant.
14. Rent Your Home if You Have One
This is very easy to do and you do not need any advice on this. If you have an extra house then rent your house because you get extra income without doing anything.
This is really good if you have a home in a city where rent is very high.
15. Develop a Blueprint for Daily Groceries and Food Stuffs
As we debated this point in the very first paragraph of this article but you can do more with it.
You can create a blueprint that you can follow each day taking for running your errands.
16. Explore the Internet & Look for all the Deals, Coupons & other Discounts
Internet has made things easier for you. You can save a lot of money on your groceries and other things that you wouldn’t otherwise.
Look out daily deals, coupons for restaurants every day. During festival seasons you get special rebates.
If you become a smart internet shopper then you save thousands of dollars every year.
17. Make Best Use of Modern Day Technology
To make things easy you can use apps and other software that will help you managing your money much better.
You can download these apps on your mobile phone and manage your money.
18. Manage Your Expenses for Annual Holidays and Travel
Believe me you can save a lot of money on your holidays & travelling if you are an avid traveller.
Usually people would like to go out once a year. You book flights, hotels etc and tend to pay more every time.
If you are smart then you can plan ahead and save money on flight tickets and hotels.
19. Whatever You Do, Do it Right Time
This is very generic. Whatever you do like you are buying a small thing for grocery or buying a house, how small or big your budget is, always buy it right time.
Wait for festive season or particular day like Black Friday where you save a lot of money.
20. You Can Work Hard and Always Earn More
Although this is not a money managing tip but you can always earn more because it will help you think and act smartly.
If you ever need some opportunity to earn extra income then MoneyConnexion online jobs are always there for you to earn in part time or full time.
So these were 20 powerful yet simple money management tips.