Are you making good money but never seem to know where it’s going? In this post, we’ll talk all about managing your money better!
You can have all the money in the world and lose it with the quickness if you don’t know how to manage your money effectively.
Learning the art of managing your money better helps you gain control over your finances and teaches you how to stop letting money control you.
I truly learned the importance of money management in 2019, I’ve always been really good at saving money, but not the best when it comes to telling it where to go and trying to make it work for me.
After I returned home from my 3 month trip to SE Asia last year, I started looking into the concept of how to achieve financial freedom, this is when I was able to learn everything I know now about proper money management.
This post will touch on 6 tips for managing your money better.
Whether you’re a beginner or starting to really get the hang of your finances this post will help you gain some insight into different ways you can start managing your money better!
- Have Financial Goals
This will give you something to work towards and keep up with every day, once you know what you want in your life, you can start putting in the work to get it.
Think about what you want your money to do for you and your long-term goals, these will give you the guidance you need in terms of how much money you want to save and what you’re going to do with the money you accumulate in the future.
Having a clear understanding of what you want out of your money and how you’re going to achieve it will make life a lot less stressful.
If you have tons of debt and you make the conscious effort to make a plan to tackle it, I’m sure you’ll feel a lot less anxious about it than just ignoring it.
- A Strong Realistic Budget
A budget can mean something different for everyone, no matter what that means for you it is 100% mandatory for whatever kind of lifestyle you want to live.
A budget keeps your mind clear about money and always on track with your financial goals.
Do your research and adopt a financial plan for YOUR lifestyle.
Not every financial tip works for me, so I do my research and apply what I think will benefit me depending on where I’m at in my life.
Keep in mind though, you can have the perfect budget and no motivation to make it work, so in the end, it’s up to you and your efforts to create the life you know you deserve.
- Multiple Savings Accounts
It’s really important to allocate different funds to different savings accounts.
This will allow you to have a variety when it comes to where your wealth sits, once you have your goals set you won’t want to add all your money to one place.
My most important savings accounts are; Emergency, Travel, Retirement and Investing.
Just like how you should adopt a plan and budget that works for you, depending on your goals your savings accounts should reflect that as well.
If you’re a low-income earner and want even more info on managing your money better, then I suggest you read my blog post “How To Save Money On A Low Income”.
- Envelopes Or A Jar You Can’t Access
Envelopes will always be my favourite way to save money, but for those who might not be as disciplined, the same approach might be helpful but instead putting the money into a jar or bottle that has to be broken to access.
Saving money in cash makes sure you don’t have easy access to it on an everyday basis, especially if it’s in a jar that has no exit.
- Apps For Your Banking & Finances
I think almost every bank has a mobile app at this point, so if you don’t have your bank account on your phone, now might be a good time to get it on there.
Having your bank account on your phone will keep you on top of what’s happening with your finances.
I try to look at my bank account at least 3 times a week to make sure that I’m staying within my budget and that nothing strange is happening in the background.
It’s easy to miss things on your account if you don’t check on it often, consistently keeping track of your budget will make sure you’re keeping on track with your goals.
- Bills & Savings FIRST
When you get paid the first thing you should handle is your bills and living expenses, these are the most important when it comes to basic survival.
Once your bills are paid you should be dividing the rest of that money into multiple savings accounts as mentioned above.
If you handle your priorities first you’ll rarely stress about money, it’s so easy to just pay your bills and save your money before using the rest.
If there’s not much money left over then that’s okay because your PRIORITIES are handled.
Since I got laid off I took a 35% pay cut, this means that a lot of my extra spending money has vanished and I now only have enough to pay my bills and put money into savings.
I’m not too upset about it though because I’m still reaching my goals and my money is growing.
Financial freedom is something a lot of young people are thinking about and working towards these days, I know I am.
If you are interested in this kind of lifestyle then it’s time to get serious about what you want and what you’re willing to do to get there.
Life is a lot about sacrifices, especially if you weren’t offered the golden ticket to life.
You can achieve anything you put your mind to, you just have to be willing to put in the work.
Managing your money better is one of the first steps to achieving the life of your dreams, so feel free to like and share this post with family and friends! Or save it for later and let me know your thoughts about these tips in the comments below.
I recently launched a super awesome Black Lives Matter Tote Bag Collection on my Etsy shop and I would love it if you checked it out!
$1 from every purchase will be donated to the Black Lives Matter movement itself and the Black Community.
100% of the rest of the proceeds will go directly to my travel fund to help me save up for one year of travel, (post-COVID-19) so that I can continue growing and expanding this blog as a Black creator.