How To Manage Your Money – 5 Easy Tips

5 Easy Tips on How to Manage Your Money

How to manage your money

Young woman sitting in front of laptop beside a pile of thick textbooks while reading one with a frustrated stressed expression

Control is one of the most sought after aspects of life.  There is nothing worse than realizing you have some debt and do not know how to pay for what you need.  Money should be a source of achievement and not stress.  As you age, you begin to realize the reality & importance of how to manage your money.

1.  Debit cards are great money tracking tools.  I recommend only using a credit card when you have to and know that you can pay it off at the end of the month to avoid excess finance fees.  Using a debit card keeps your spending in check and at the end of the month, allows you to account for every dollar spent.  Debit cards over credit cards and cash is the first step in learning how to manage your money by seeing exactly how you spend your money.

2.  Start investing and accruing interest.  Don’t wait until you have a large amount of money to invest.  Taking action today and even starting small is one of the most important steps you can take for your future.  Look at mutual funds, direct stock purchase plans, brokers that allow small investments, and no-load fund investments.  These options are usually pretty straight forward and easy to invest in.  Lastly, you can purchase CDs from your local bank or brokerage firm.[bctt tweet=”5 easy ways to manage your money more effectively. Check it out…” username=”HBSMoneyTips”]

3.  Online savings accounts save for a rainy day.  It’s happened to us all; that unexpected emergency expense.  Putting 1/6th of your monthly income into an online savings account allows for those emergencies to be covered without stressing your financial situation.  This is a great way to learn how to manage your money when the unexpected happens.

4.  Multiple streams of income.  Sure, you have a 9 to 5 job but that doesn’t mean you can’t earn more money.  In the age of the internet, making additional supplemental income has never been easier.  If you love to write or are an expert in something, consider blogging, writing an eBook, or even creating tutorials.  Even if you aren’t a writer, it is easy and inexpensive to have someone ghostwrite your book for you.

If you have a hobby, consider giving lessons to people in your area of expertise.  Don’t limit your financial capacity with just one stream of income.  Profit off what you already love doing and put that money towards your retirement fund.  It’s fun to learn how to manage your money when you have more money to play with.

5.  Free money.  Along with the internet bringing knowledge right at your fingertips, it also brings money saving opportunities.  Online coupons or instant savings from apps offer instant and unadvertised savings at many of your favorite stores.

Most of the time, whatever you can find in your local store, can be found cheaper on the internet.  This ranges from food, to clothing to car buying.  This is the smartest way to buy.  Take that extra money that you are saving and invest it or put it in your savings account.

It’s never too late to learn how to manage your money, but the sooner you gain control the better off you will be. There are many ways to take control of your finances but the most important step is to do something and do it consistently.  Remember nothing happens without action, so take action today.

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