Hello everyone! Today let’s talk about ‘Money Management’. We all agree that money is one of significant factors of life. Without money, life is crucial and thus everyone must understand why is managing money necessary. Let’s discuss on this topic in detail.
What is Money Management?
According to Wikipedia, Money management is the process of managing money which includes expense tracking, investment, budgeting, banking and taxes. In simple terms we can say that keeping an eye on financial condition and taking wise decisions in order to maintain both financial stability and growth is Money Management.
Why is Money Management important?
A year ago, did you know that exactly today on this time you will read this article about money management? No, you didn’t. It’s simple, no one can predict future but everyone can prepare for worst condition. Emergency can knock door at any hour and we cannot take risk of being unprepared. This is why you should consider managing money from beginning itself.
Money Management Tricks and Tips
Find out few tricks and tips for managing money. I will mention my personal favourite 5 tricks. These tricks will be helpful to you for sure.
1. Use Cash wherever possible
This technique is most helpful when talking about money management. Every time while paying, pay in cash. When you pay in cash, you feel getting money reduced because it gets reduced directly straight from your pocket. But when you use debit card or credit card, you tend to spend more as money is reduced from your bank account and not from your pocket.
2. Track Earnings and Expenses
Every night before you go to sleep, calculate your today’s expenses. When you track your expenses, it becomes easy to find where actually money goes. This makes you conservative and thus you invest money only in necessary things. When you don’t buy unnecessary things you actually save your money. Saving money is indirect form of earning money.
3. Divide Money into Small Amounts
Never stack money. Dividing it in smaller amounts is always beneficial. For example, you can divide it into categories like Savings, Bills, Food, Emergency etc. Dividing money and then keeping each amount in different places is safe too. If someone robs you, you definitely are not going to lose all your earned money! Stacking money is risky, I repeat ‘Risky’!
4. Invest Money in Valuable Things
Most people don’t invest which is obviously a bad idea. Imagine there’s a medical emergency and you have become bankrupt because of increasing expenses. Every minute is precious and now you are getting tensed after each passing minute. Suddenly you remember about Gold Coin you bought last year. Without wasting time you search for gold coin and sell it. Now you have enough money to bear hospital expenses. Buying such valuables whose prices are increasing can save you from a big disaster.
5. Shop at Right Time
Talking about online shopping, if you wait for right time, you will no doubt save some bucks. Use promo codes while shopping and wait for best deals. For big occasions like New Year, Diwali etc. one can find 60% off on expensive electronics. This is the best time for shopping. Also don’t be quick buyer when a new product is launched. Wait for at least a month and then buy it because price decreases as the product gets old. So next time be patient!
Please give these tips and tricks a try and let me know how they worked for you. Also don’t forget to share your tips and tricks on Money Management in comment section. Have a great day ahead!