Simple and effective money management practices that can change your life

Strategies to Manage Your Finances Better

13:29 28 May 2014

We can all learn to manage our personal finances better by employing a few practical methods. Nothing feels as good as being in control of your finances.

 

In an ideal world managing one’s personal finance would be a subject that is taught at schools but since it is not, it is something that we have to learn on our own. 

 

Here are some strategies that you can employ to start getting a handle on managing your personal finances better:

 

1.Draw a budget

 

A budget is like a blueprint of how you want to build your personal finance. It should take into account all the expenses you have in relation to your monthly earnings. Some people need something to help them keep track of their finances and for these people personalised checks can be very useful. 

 

2.Be Smart with what you spend your money on

 

There are a lot of items in your home that you don’t use frequently or things you might only use once. Rent or borrow things that you will only need to use once.

 

3.Do not use credit cards unless it’s an emergency

 

Keep in mind that when it comes to money, credit card is not your own money, using it accrues debt that attracts a lot of interest. You should only use a credit card for emergencies and make sure that you will be able to pay the balance off at the end of the month, otherwise you may find yourself in serious debt.

 

4.Start Saving

 

Everybody should have a savings account that they can put a bit away for emergencies. You can start small so that you get into the habit of saving a percentage of your income. 

 

Try to follow these steps and you will improve your finances. Once you have a handle on your personal finance you can look at other avenues to make your money grow, like investing etc.