MONEY MANAGEMENT TIPS

HERE ARE A FEW TIPS ON HOW TO MANAGE YOUR MONEY THIS YEAR

1. Have a savings goal
You cannot really do much without a goal in mind. Before you start saving, you need to sit down and figure out how much you want to save by what date or what you are saving for. Maybe a car, a house or whatever it is. Remember the goal should not be too high because then you will not be able to reach them. Keep your targets achievable and you can go increasing them as you achieve them.

2. Have a savings account
Take your time and do your research before settling on a bank to open the savings account. Keep in mind that different banks offer different services so you should find one that benefits you the most. Some accounts even have restrictions when it comes to withdrawal. Where you can only withdraw the money after a set period of time. Go for the plan that will help you save more.

3. Make saving automatic
You may not have the self-discipline required to set aside a certain amount every month after you receive your salary. So instead have the bank or employer automatically transfer the funds to your savings account, this will ensure that no matter what you are contributing to your savings account.

4. Have an emergency fund
Now this savings account may also be your source of emergency funds, but to ensure you truly reap the benefits of saving you can have an extra emergency fund account where you keep money to use on a rainy-day. For example to pay for your medical expenses or to sustain you in case you lose your source of income.

5. Monitor your expenses
Take a month and track how you are spending your money. This will help you determine where you are misusing your money and how to avoid the same. It will also help you know how to make a financial plan and how much money you should be saving every month. It will also help you realize where you are overspending and help you come up with a plan to curb this behavior.

6. Set a budget
After you evaluate your spending it is now time to come up with a budget. Having a budget will help you save because it helps you avoid spending more money than you should. In order to save, you need to make sure you are living within your means. Having a budget will help limit you to a lifestyle you can afford.

7. Take advantage of applications
In this digital error there are so many applications that will help you save more. There are apps that help you with budgeting and some that will help you find cheap deals on things you want to buy as well as apps that enable you to sell things you no longer need. Financial planning is the best way to ensure financial success. Therefore it is important that you make a plan and stick to it this year.

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