It may be true that money can’t buy you happiness, but it can help you to feel more secure and enable you to do more of the things you want in life, which is why no matter how much, or little, money you have, you should be making an effort to manage money as effectively as possible.
5 simple strategies to manage money
Below, you will find some simple ways to help you manage money the right way, so you can build more security and stop worrying about the state of your finances so much…
Assess your financial situation
You can’t hope to effectively manage money if you don’t actually know what kind of situation you’re currently in. So, sit down, be brutally honest with yourself about how much you have coming in and going out, and how much debt you’re in, and then you can come up with an action plan to manage money for improving your finances in the future.
Set up three bank accounts
If you want to be able to manage money with as little stress as possible, you need three specific bank account:
- Checking
- Savings
- Investments
With these three separate bank accounts in place, you will find it far easier to separate your money, avoid overspending, and ensure that you are able to build up a nest egg of sorts.
There are many banks out there to choose from when it comes to deciding which one to use. They all come with their own pros and cons, some even offer certain benefits. These benefits do however all come at a cost, usually to you.
You could open a Citi Priority account, they have banks in all the major states so you will never be far away from a branch should you need assistance. The only issue is to open one of these accounts and take advantage of the benefits you will need a high deposit. In order to get the Citi Priority $700 bonus, you will need a minimum deposit of $50,000.
Plan and budget
In order to manage money the right way, you need to know what you actually want. Do you want to save for a house deposit? Invest for your retirement? Save enough so that you can think about finally starting that business? It is only by having a plan that you can ever hope to meet your money goals, and it is only by having a budget in place that you can make the right financial moves to bring it all together.
Use apps to help manage money
There were lots of excellent money management apps that, say use a stock API to help you manage your investments to which round up your purchases putting the spare change into savings so you don’t even have to think about it, which can help you to look after your money the right way without very much effort, By having them on your phone, you can keep an eye on your finances every day, which is something you really need to do, and make any changes as and when necessary.
Get to know your credit score
Your credit score is more important than you might think. If it is high, it will be easier for you to get a mortgage or access the best credit card deals, and if it is low it could affect everything from your ability to get a job to whether you can access credit when you really need it. By first checking your score, and then doing everything you can to improve it, you can improve your financial situation significantly.
Manage money better: 5 mistakes to avoid
Mistake 1: not dealing with financial issues
Financial topics are just boring for most of us. Then it’s more likely to clean your shoes or tidy up. But before the rude awakening comes and the debt trap snaps shut, you should occasionally allow yourself and your money a moment together and deal with your finances.
Mistake 2: not knowing your financial position
How much money do you currently have in your wallet? And how much in your account? And what did you spend this month? With a money diary you can keep track of your expenses – and at the end of the month you never have to ask yourself again: Where did my money go?
Mistake 3: spending more money than you have
It sounds kind of logical that you shouldn’t spend more than you take in to manage money. But you probably know that too: You actually don’t have any more money, but the trendy sneakers or the new smartphone have to bebought. So think carefully about whether you really need something or just want it – and whether it really makes you more satisfied …
Mistake 4: not paying attention to debt traps
For example, do you use your smartphone for games? Then you probably know that you have to pay for many aspects of games in order to advance faster or to be better. The problem with this is that it is not play money, but real money that you have to use for it. Many games can be purchased for up to one hundred euros. You can end up in the debt trap faster than you may be aware.
Mistake 5: don’t review contracts
Streaming services, mobile phone contracts, internet fees, and perhaps a subscription for one or more clouds: this can quickly generate a lot of money. Of course we need some of these contracts – but do you really need and use all of them? Aren’t there perhaps cheaper offers with a mobile phone contract? Checking your contracts regularly can save you a lot of money!
Conclusion
Money management can be difficult to do well, but if you start adding the above ideas into your life, you will find it a whole lot simpler to manage money!
