Handling finances have always been a challenge to all of us. The high cost of living, bills, food, transportation and gas, as well as night outs, are among the list of expenditure that eats up our monthly budget. Fortunately, there are better ways to manage your finances, and results can be readily achieved by developing your money making habits.
1. Ditch your Budget and Adopt a spending plan
Budget is one of the words I have eliminated from my vocabulary. It does not feel good to budget and when you resent doing something you will find an internal struggle when you began trying to accomplish that task. Instead of budgeting I now create a plan for my money, and give every dollar a job. I have created a free Ebook called “The No Budget Spending Plan” that explains the system I use. You can access it by visiting nobudget.mymoneymogul.com.
2. Establish your spending rules
Establishing your spending rules is one way of efficiently managing your finances. For instance, you may opt to list down all the things that you wants, and stick to the list that you’ve made. If you can’t decide what purchases to make, try sleeping on it. Wait at least 24hrs before making any major purchases to make sure that you are not being impulsive.
3. Enjoy home dinner
Aside from the fact that making your dinner will help you manage your money, this also comes with health benefits. Plan your meals for the week at home and use the additional money you save to invest.
4. Use your bonus money to pay your debt
Living in debt can sometimes fell like your suffocating. Snap yourself out of that shackle by putting your extra money (e.g., cash gift, bonuses, gift cards) towards your debt reduction. It is very simple. Instead of blowing your bonus, do yourself a favor and free yourself from the shackles of debt.
5. Consider your self-investment
Every time you are tempted to buy something, ask yourself if it is in line with your objectives, priorities, and dreams. Instead of spending too much on unnecessary items, manage your expenditures by making it a habit of spending only on things that could help you attain your personal goals in life.
Spending money is one of the easiest activities in life; managing it, however, does not come as easily to people. It requires proper mindset but does not have to be difficult. These top 5 habits of money management can make your managing your money easier.