Being good with money is more than making sure you pay your bills on time and having a little left over to do with what you please. Life is just so much easier when you have grasped the basics on how to manage your money effectively. Are you someone who holds on for the next payday month after month due to your finances dwindling rapidly as the month goes on? Are you hoping to achieve a certain financial goal this year but don’t have the means to do so?
Of course, it can be really tough managing your money, particularly if you have unpredictable young children. One month they need new school shoes, the next they need money for a school trip and the next it’s their birthday party. For parents it sometimes seems never ending but if you want to learn to be better with your finances, to save yourself in those manic months, take a look at these tips to help you on your way.
It goes without saying that the harder you save, the more money you will ultimately have in the long run and being smarter with your money will help it go further. Placing your savings in a separate account each month will ensure you are managing your finances correctly and also building up a nice rainy-day fund for times when you don’t want to dip into your earnings. A rainy-day fund refers to a reserved amount of money to be used when your regular income is disrupted or decreased in order for your everyday life to continue running the way it was. You may need to pay an unexpected parking fine or speeding ticket, your dishwasher may have broken down and needs replacing, or you get a flat tyre on the way to work, and these are all emergency situations when you may need a little financial help. Keeping some savings to one side is always a good idea.
Budgeting is a great way to manage your monthly income and ensure you don’t live beyond your means. However, many people don’t budget because they think it is a tedious process of listing out expenses, adding up numbers and making sure the outgoings do not exceed the income. Take some time to plan where your money is going each month. One of the most effective, and easiest methods is the 50/30/20 method whereby you split your income into these percentages each month. 50% for needs, 30% for wants and 20% for saves. This is a fantastic opportunity to help cut your spending right down and to make sure your money is going on the right things.
Investing may seem like a foreign concept for many, but it is actually a lot easier than you think, with some investments actually coming naturally to some. How many of you have bought a slightly run-down property in the hope of revamping or updating to sell for a profit? Flipping houses is a clever form of investment as it involves the purchase of a property with a goal of enhancing it, selling it or leasing it for a profit in the long run. One of the best ways to invest in property, however is with buy to let,
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