Connect with us

Success Advice

7 Ways to Make Yourself Better at Managing Your Money

Published

on

how to manage your money better
Image Credit: Unsplash

What you know about money management often comes from your experience, advice from your friends, parents, and your 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 are going to introduce to you 7 tips on how to manage your money and financial situation effectively and intelligently.

1. Changing the way you think about money

Some people often complicate monetary issues and become stressed about making money, alert to ambition, and feel hatred of material elements while highly appreciate spiritual ones. After all, they often avoid talking about money just because they cannot control it. Saying that they want to give up or they are unconcerned is just a way to hide their pressure and fear when they cannot gain 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 of 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. Changing the way you talk about money

People often think that talking about money to others is impolite, so they keep it inside and stress themselves out. Unfortunately, it causes frustration and may lead to many other contradictions. Professor Syble Solomon from the Financial Therapy Association claimed that most couples only talked about money when there was 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 key and 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

You may equate a budget with strict abstinence, in which you have to sacrifice your comforts and ignore your special pleasures. However, this is not a good way at all, it only makes you a time bomb and you may decide to spend all of your money at once. Instead, you are advised to have a balanced budget, like you are following a balanced diet because money management should be a lifestyle, not an intermediate solution.

5. Spending your money intelligently 

Determine whether one thing is important to you or not before spending a sum of money on it. Make sure you have a plan for it and it is one of your priorities. If you want to rent an apartment with a nice view and create a relaxing space at home, it means that you decide to invest your monthly income in living space. If you travel frequently, spend your money on traveling items instead of expensive furniture. Another smart way is to divide your account into two parts, one for your imperative needs and the other for your outbursts. By the way, you will find it easier to manage your finances after doing this.

6. Saving intelligently

Don’t save as much as possible but set your financial goals based on certain contexts to know how much you should save and how long it should take to achieve it. The clearer you define your goals, the more motivation you have to realize them.

“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 live well when retiring, you need to save from 15% to 20% of your income (even more than 20% if you can earn a lot of money). Unfortunately, not many people can do so. At first, it may be challenging to save up to 10% or 15% of your income but if this amount of money is subtracted automatically from your salary and transferred into a retirement account, it is much easier.

For instance, with earnings of $50,000/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.

Above, we have introduced to you 7 ways on how to make yourself better at money management. Have you ever tried any of these methods? If yes, please share with us your experience. If no, I hope these methods are useful to you. If you have any questions or comments, you can drop your words below this post. We will respond as soon as possible. 

I am Linh Pham – a blogger with many years of experience in searching for useful information related to self-development, work motivation, job-searching tips and advice, productivity improvement, life issues, and so on. I try to develop myself by reading articles on different career blogs and listening to experts’ talks. My purpose is to create a good working culture among employees and equip them with essential working skills.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Success Advice

Problem-Solving Secrets From World Class Athletes

Once mastered, it’s a game-changing skill for turning industries on their head.

Published

on

Image Credit: Midjourney

Top innovators are those mavericks who are exceptionally good at reframing problems. The world of outdoor sports, where practitioners are always pushing the edge of what’s possible, provides a case in point. (more…)

Continue Reading

Success Advice

How to Increase Productivity Through Flow States: A Recipe for Success

When harnessed effectively, flow states can drive individuals and businesses toward unparalleled outputs

Published

on

Image Credit: Midjourney

According to the U.S. Bureau of Labor Statistics, productivity in the U.S. has grown at a mere 1.4% since 2005, leaving companies with the perplexing question of how to drive growth. (more…)

Continue Reading

Success Advice

From $5 to $12 Million: Mignon Francois’ Proven 5 Step Recipe to PR Stardom

PR has many benefits including making you more visible so that you can attract your dream clients and get paid what you want

Published

on

Image Credit: Midjourney

In Mignon Francois’ book, “Made From Scratch: Finding Success Without A Recipe,” she shares her journey of turning $5 into $12 million through her cupcake business (The Cupcake Collective). (more…)

Continue Reading

Success Advice

Mastering Portfolio Management: Your Comprehensive Guide to Checking Investment Holdings

By cultivating the habit of checking your investment holdings, you are embracing a proactive approach to portfolio management

Published

on

Image Credit: Midjourney

As you embark on your journey to become a more adept investor and refine your portfolio management skills, one crucial aspect is consistently monitoring your investment holdings. (more…)

Continue Reading

Trending