3 Tips for Managing Your Money
Unless you're one of those rare lucky players to hit a jackpot, many people make New Year's Resolutions to spend less and save more. Easier said than done, right? Not necessarily. Saving money is easy when you diligently follow good money management practices.
But you don't need to hire a financial adviser or an accountant to help you get started. Use these common sense tips in order to manage your money like a pro.
But you don't need to hire a financial adviser or an accountant to help you get started. Use these common sense tips in order to manage your money like a pro.
Save Your Holiday Cash
With the holidays around the corner, you may be gifted with a lot of Christmas cash. While it may be tempting to spend all of it at once on gifts for yourself, think about the things you could pay for in the future. Do you really need a new television or this season's latest fashions? There is always something shiny and new, but saving your gift money now can be something bigger later. Think about investing a little in some stocks down the road or save for your kids' college funds.
Always Put Something in Savings
The age-old practice of dividing your paycheck is a fantastic technique for saving money. If your workplace does direct deposit into your bank, have a portion go directly into your savings account. That way you are not tempted to keep more in your checking account to spend on frivolous purchases. A good breakdown could be along the lines of 40% in savings and 60% in checking. If that isn't feasible, put the absolute maximum percentage in savings that you can while leaving enough to pay off bills and other expenses. If you have it automatically set up through direct deposit, then you won't even need to do the math!
Cut Unnecessary Purchases
A lot of your money could be going to monthly purchases that you do not need. Keep a record of what non-bill purchases you are making. If you are subscribed to a monthly subscription box, evaluate how often you use its contents. If things are piling up in a corner unused, chances are you do not need to keep dedicating your hard earned money to it. Some banks also offer yearly recaps of what your purchases mostly went towards. You may be shocked by the amount of money you are wasting!
What are some other tips you have tried? Leave your best strategies in the comments to share.
With the holidays around the corner, you may be gifted with a lot of Christmas cash. While it may be tempting to spend all of it at once on gifts for yourself, think about the things you could pay for in the future. Do you really need a new television or this season's latest fashions? There is always something shiny and new, but saving your gift money now can be something bigger later. Think about investing a little in some stocks down the road or save for your kids' college funds.
Always Put Something in Savings
The age-old practice of dividing your paycheck is a fantastic technique for saving money. If your workplace does direct deposit into your bank, have a portion go directly into your savings account. That way you are not tempted to keep more in your checking account to spend on frivolous purchases. A good breakdown could be along the lines of 40% in savings and 60% in checking. If that isn't feasible, put the absolute maximum percentage in savings that you can while leaving enough to pay off bills and other expenses. If you have it automatically set up through direct deposit, then you won't even need to do the math!
Cut Unnecessary Purchases
A lot of your money could be going to monthly purchases that you do not need. Keep a record of what non-bill purchases you are making. If you are subscribed to a monthly subscription box, evaluate how often you use its contents. If things are piling up in a corner unused, chances are you do not need to keep dedicating your hard earned money to it. Some banks also offer yearly recaps of what your purchases mostly went towards. You may be shocked by the amount of money you are wasting!
What are some other tips you have tried? Leave your best strategies in the comments to share.