It doesn’t take one to be a genius at math to be a good financial planner. It is an added bonus if you are, but it doesn’t really require to be a wiz at it. However, you do need to know addition and subtraction.
Life is easier when you are in control of your money rather than your money controlling you and your life. Here are ways to help you control your life and your money.
How To Manage Your Money Better?
1. Prepare A Budget -
● Most people find it tedious to plan a budget because well, who wants to go through the trouble of listing and predicting out all the expenses. It takes only a few hours to plan out an entire months’ worth of expenses. It is completely worth the cost, think of the help and value that preparing a budget will add to your life rather than the process of creating one.
2. Use The Budget -
● Most people complete the hardest part, which is creating a budget, but forget to stick to it and the budget ends up gathering dust at the bottom of the drawer. Look at it as much as possible, stick it up in a place you will always see, even if that means putting it as your wallpaper. The point is, at any given moment of the day, you must know how much money you have in your account and on your person. Making it much easier to spend.
3. Throw Away Your Credit Cards -
● Credit is the mortal enemy of savings. Credit = debt, and it is of utmost importance that you stray away from any sort of debt or transaction that adds on to your liabilities on the balance sheet of life. A lack of cash in the wallet/purse urges on to use their credit cards and quite often the temptation of purchase something clouds the ability to think whether or not you can actually pay it back in the future. Use StellarAccountViewer
4. Save Up For Big Purchases -
● The ability to control temptation goes a long way in the world of both investment and savings. We all have the urge to buy the latest iPhone or MacBook whenever it launches, don’t let temptation run your bank balance dry. Rather than sacrificing essentials for temporary materialistic gratification; save up, cut expenditure, contemplate whether the product is worth splurging on and maybe the price will even reduce in the coming time. In fact, by saving up you are actually saving money even while you buy it, because saving up, gets rid of the interest you pay when using credit cards
5. Don’t Commit To Monthly Recurring Payments -
● No, this doesn’t include your Spotify premium payments, it could, if your income isn’t that high, but such things are often miscellaneous, monthly payments include loans of all sorts. Just because you earn enough and qualify to get loans don’t mean you have to take the loans. As mentioned earlier, credit is the enemy of savings. Most people think that if a bank says you’re eligible for a loan it means that they can afford to pay it back. However, the bank only knows your income, and only you know your monthly expenditure. So technically your ability to pay off a loan reduces drastically when you factor in your monthly payments.
6. Invest Effectively -
● It is important to know that, to make more money, you must invest it rather than saving it. Stashing money in your bank account will not help increase it. Remember don’t work for your money. Let your money work for you. Obviously, you must invest it smartly, however, even if you are opting for low risk – low reward options, it’s still better than letting your money stagnate, even if the profit it just a mere 2 or 3 Rupees, it’s still more than nothing.
7. Have A Daily Saving Budget -
● Try saving 10-20 Rs every day. It helps build a strong savings ethic and down the line, it will amount to something larger, think of it this way, 10 Rs every day equals to about 300 Rs a month which is a year equals to 3600 Rs doing this for say 10 years gives you 36,000, which when invested ca easily be doubled so even saving 10 Rs every day can get you about a lakh in a decades time easily. This is apart from your monthly savings and there can be a different daily limit for everyone.
Following these steps will for even just 6 months help you see a change in how your life has changed for the better and help you control your life and money and not the other way around. Financial planning doesn’t always necessarily require tons of time and efforts if you genuinely have the money to spare you can also hire financial advisors and consultants who have made it their jobs to make money by helping you save money.