Learn How to Manage Money with These 6 Quick Tips
Being good with money can be hard, and the majority of Americans would attest to it, considering they’re living paycheck to paycheck.
Keep in mind that these people are from all walks of life – their incomes differ from each other drastically. This means the amount of money you make has little to do with how good you are with money.
If you want to be financially stable and prosper, you need to learn how to manage money, no matter how much you’re making. Those who’ve taken control of their finances are usually living more mindful, less stressful lives than those who haven’t, even if they’re making less.
How do they do it? Here’re 6 quick tips that may seem simple but can make a world of change.
Here’s What Will Help You Learn How to Manage Money
If you want to learn how to manage money, then budgeting is something you should start with, even if you skip everything else. You need to take a good look at your bank statements, track your spending for different categories, identify the categories where you’re overspending and wrangle your money into submission.
Keep in mind that you might be under budget or over budget when you start. Don’t let budget fails to discourage you: practice makes perfect and you need time to figure out what kind of budget will work best for you.
2. Separate Needs from Wants
Needs are something you cannot do without rent, utilities, and groceries all going into the “needs” category.
Wants, on the other hand, are things that can be either cut or lessened.
This doesn’t mean going scorch earth on your budget and cutting everything other than beans and rice from your budget.
3. Include Wiggle Room in the Budget
The more rigid your budget is, the higher the chances that you won’t be able to stick to it. It might seem like you can do without certain things in this life, like takeout or Starbucks. So, how to learn to manage money when cravings are stronger than us?
If you outright forbid yourself to spend money on “fun stuff” you will fail. So, budget a separate category for fun – but keep the money in check: having $100 doesn’t mean you get to spend it all at once. Bonus tip: budgeting for this category weekly instead of monthly could help.
4. Cut What You Don’t Need
What are the things you could do without? Learning how to manage money can start with checking your subscriptions, memberships, and premium apps – how often do you use them? Unsubscribe and switch to free versions wherever you can.
As for the bills, you cannot cut – try renegotiating them (or switching to another provider). There are even apps to help you with this – try Truebill or Trim to find out which bills you could cut down on.
5. Switch to Cash
This might not work for everyone, but it’s worth a try: many people have said for a long time now that using cash over cards helps them spends less.
But if you want to learn how to manage money, consider this: eyes are a very powerful tool. When we actually see how much we’re paying and how little is left in our wallets, we tend to control ourselves better and spend less on average, sticking to things we cannot do without.
6. Pay Your Future Self First
Including savings in your budget is another important key in learning how to manage money properly. In fact, your savings for the emergency fund (which should be big enough to comfortably cover at least 3 months’ worth of your expenses) should take precedence over every other line of expense, other than rent and utilities.
Many recommend using the 50/30/20 system, where 20% of your income should be going to savings – but if that’s too extreme for you, cut it down to 10%, or even 5% at first. You can start increasing the amount later, what you need to do first is make sure saving money turns into a habit.
Why Is an Emergency Fund So Important?
Because financial emergency is the #1 likely culprit to bust your budget. What’s even worse is that if you postpone dealing with it, there’s a large chance the problem becomes harder to deal with and cost you more down the line.
You shouldn’t postpone dealing with an emergency even if your fund isn’t ready yet. Try an alternative method to get cash: get a short-term fast loan, like title loans online with At Home Title Loans.
Why a Title Loan?
Title loans are quick and easy to acquire. They’re a secured type of loan, which makes the approval process easier for us to handle. We will accommodate any type of income and won’t be paying much attention to credit scores – which makes it a perfect option for you, even if your credit score is bad or outright nonexistent.
How to Get a Title Loan?
You can easily apply for title loans online without leaving the comfort of your house.
All you need to do is go to our home page and fill out the online form. You’ll be contacted by our loan representative who’ll determine the details of the prospective loan and set up a meeting with the verification agent at a convenient location.
You’ll need to bring your car, your government-issued ID (you must be at least 18), and the car’s title (it must be in your name completely lien-free) to the meeting. Our verification agent will verify the VIN number and have you complete the rest of the paperwork.
If you’re approved, the cash will get deposited into your account the next bank business day.
Learning how to manage money isn’t an easy task, and neither can it be done in a day or two. However, the tips outlined above will help you avoid common financial mistakes and become a happier individual.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.