How To Manage Your Money Better: Top 23 Tips And Strategies

If you’re looking for some strategies on how to manage your money better, then you’ll love this article. Now let’s begin!

How To Manage Your Money Better:

1. Pretend That You Earn Less Than You Do

Having a mindset that you are earning less than what you actually receive will help you to manage your money. Committing yourself to live less than what you earn is the first thing you have to do if you want to break the paycheck to paycheck cycle. Having money left in your bank account at the end of the pay cycle will make you feel a lot freer.

2. Create a Budget

Create a budget for where your money is going. Commit yourself and that amount for that budget. If you have bills to pay, separate them and create a budget for them first. This way, it will be transparent to you about where your money goes.

3. Build an Emergency Fund

Having an emergency fund is very important. This is the fund where you will get your payment in case you were hospitalized, you had an accident, or your house was burned to ashes. It is crucial to have an emergency fund when you are facing an emergency and you need to have money.

SEE ALSO: How To Prepare For a Job Interview: 20-Step Interview Prep Plan

4. Consider Downsizing

If you are living alone and paying a hefty amount of rent, maybe it is time to transfer to a smaller apartment where you can be comfortable at the same time save your money. Living in a much smaller apartment is depressing but being able to save money will give you a peace of mind and be able to manage your finances.

5. Pay Your Debt

If you have debts it’s better to start paying them off and start getting out of your debt immediately. You won’t be able to pay them instantly, but you will be able to have financial freedom knowing that you don’t have debt anywhere.

6. Track Your Expenses

One reason that you are still living paycheck to paycheck is that you did not track your expenses. Tracking your expenses and being able to determine which part you have the most expenses will help you to create a budget. You will have a basis on which part are the necessary expenses and which ones can be lessened or stopped spending on.

7. Look for Ways to Increase Your Income

If there is nothing you can do with your current paycheck no matter how much you budget everything, maybe it’s time you need to have another source of income to help you out with your finances. Look for income-generating idea that you can put to use and an increase your incoming cash. It can help you to save up even if you have to live with your current paycheck.

8. Change Your Outlook

Wasting money is what keeps you living paycheck to paycheck. Rather than wasting your money mindlessly, spend your money on something worth the spend. Instead of an expensive gym membership, why not run around the park to help you get fit.

9. Cultivate Income Diversity

Cultivating income diversity can aid you stop from living paycheck to paycheck because it provides you with alternative income. A small side business can be a great way to bring extra income into your home — extra income that doesn’t disappear if you are laid off or fired.

SEE ALSO: How To Be a Good Leader At Work: 20 Key Factors You Should Know

10. Make Saving Automatic

When you try to save of what’s left of your paycheck, most of the time you have nothing left to save. Try to save first before you get your hands on your paycheck. Set up an automatic transfer on paydays straight to your savings account.

11. Take A Hard Look At Your Fixed Expenses

If your expenses are more than what you are earning, try to reduce them. It is a rule of thumb that what you spend should not be more than what you earn. You need to check on what you are spending and plan out what you should be spending.

12. Save Your Raises

Having a salary increase does not mean you can have expenditure increase as well. Sticking to your current expenditure will have you save more money without spending more.

13. Choose Someone to Help You Stay on Track

If you have someone to remind you and hold yourself accountable is an important thing. Working with a financial advisor will help you to keep on track of your savings and expenses.

14. Find Out Your Why

Whether it is to stop yourself from living paycheck to paycheck, or saving for a new car, you should find the reason why you need to manage your finances. When you know your reasons it’s easier to save your money.

15. Be Patient With Yourself

Changing habits and reducing expenses will not happen in just a snap. Be patient with yourself. It’s hard to shift from your old habits and it will take a long time till you get used to how you will manage your finances.

16. Set Money Aside Each Month

One way to finish living from paycheck to paycheck is to put your money in the bank. Set aside money from your paycheck and deposit it in your bank. Later on, if you ever need money, you will have something to use especially in emergencies.

17. Stop Using Your Credit Card

Credit cards are one of the major causes why you have lots of expenses. Stop using credit cards and you will be able to manage your finances. When you use your credit card, you are blindly spending without knowing where the money went.

18. Stop Relying on Bonuses

Companies give bonuses but you should not rely on them to get by. If you receive a bonus, it should not be part of your daily expense. Make use of your business by saving it or paying off your debt.

19. Learn How to Say “No”

You often increase your expenses because you don’t know how to refuse and say no. When a friend asks you to go shopping or party you immediately say yes without thinking about your finances. Decide on what you can afford to have fun and stick to that budget.

20. Get Organized

Track your spending and organize all your expenditures. If you have a 401(k) make sure to deposit to it before you touch your money for anything else. Then set aside for your bills and debts such as credit cards. Make sure that you don’t add debt, instead find a way to pay all your debt. Set aside for your emergency fund and what’s left for you, you have to budget. Include expenses for the partying if it is left.

21. Learn To DIY

Instead of calling a plumber to fic your faucet, learn to do it yourself. The money you will pay to the plumber, you can add it to your savings. Plus, you get to fix your plumbing for free.

22. Cut Down on Expenses with Alternatives

If you are going to work and using a car when your office is just a block or two away maybe you can try walking. You can cut off on your fuel expenses and exercise by walking. You can breathe in fresh air as you walk to your office. If you are a member of an expensive gym, try to exercise at home or invest on exercise machines and follow training videos. You won’t be able to spend on expensive membership, plus save on your fuel.

23. Boost Your Income

To stop living from paycheck to paycheck boost your income by spending less and earning more. Cut out on your expenses and have an extra income through part-time jobs.

I want to thank you for taking the time to read my article about how to manage your money better. I sincerely hope its contents have been a good help to you.

Przemkas Mosky
Przemkas Mosky started Perfect 24 Hours in 2017. He is a Personal Productivity Specialist, blogger and entrepreneur. He also works as a coach assisting people to increase their motivation, social skills or leadership abilities. Read more here