Are you aware that 87% of Americans listed inflation as a source of stress? Couple this with their spending and budgeting habits, and you have a recipe for disaster.
But does it have to be this way? If you suffer from poor money skills, where did that come from? Much of it comes from how you were raised and the money mindset you were born into.
If you find yourself in a scarcity mindset, managing money is of utmost importance. If you’re unsure of how to get started on your budgeting journey, dive into our informative guide below.
1. Have a Budget
When thinking about managing money, it can seem like it’ll be a dull and daunting process. Listing your expenses and making sure your numbers are correct, doesn’t exactly exude fun.
It’s time to cut the excuses, though, especially if your money management skills are lacking. It’s important to take the time necessary to get it back on track. We recommend focusing on what budgeting will give you rather than the process itself.
2. Use the Budget
Money management apps for your budgeting needs won’t help you if you don’t take the time to use them, right? The same holds true if you prefer the old-fashioned way.
Ideally, you ought to check your budget every day. Throughout each month, you want to refer to your budget and spending habits. As you pay bills and spend your money, update it accordingly.
You want to get to a point where you know how much you can spend while considering the expenses you have to pay.
3. Give Yourself a Limit for Unbudgeted Spending
You’ll want to pay attention to your net income too. This is the money left over after you subtract your expenses.
Feel free to use this money however you please, but make sure you put a cap on it. You don’t want to go wild when learning how to manage your money. Remember, it must last the entire month.
If you’ve got your eye on a big purchase, you want to make sure it won’t directly affect your budget in a negative way.
4. Track Your Spending
One of the best money management tips we at King Cash can provide is to track your spending. You’ll be surprised at how quickly things can add up. You may be overspending in certain categories.
Without a birds-eye-view of where your money is going, it’ll be that much more difficult to reach your financial goals.
It’s a good idea to start saving receipts if you prefer the old-school approach. These days most money management apps for budgeting will do this for you.
Your job is to categorize them as soon as they come in. Identify your spending habits and do what you need to do to curb any poor habits you’ve learned along the way.
5. Don’t Commit to Any New Recurring Monthly Bills
Does your income or credit qualify you for any online loans? Use caution before you proceed forward. A bank may approve you for credit cards or online loans even if you cannot afford them.
Your reported income and your dent obligations from your credit report are what the bank is aware of. What the bank isn’t aware of is if you can make your payments on time or not.
When managing money, you need to make diligent decisions on what is affordable and what isn’t.
6. Make Sure You’re Paying the Best Prices
Take a glance at your subscriptions, products, and services. It’s wise to do some comparison shopping. Are there any discounts, coupons, or cheaper alternatives for you?
When spending and saving, every dollar counts, so it’s wise to take the time to see if a more cost-effective solution is out there.
7. Save Up for Big Purchases
To get better with your money, we at King Cash encourage you to delay gratification for as long as possible. By putting off bigger purchases, you won’t be sacrificing your daily needs.
This will give you more time to evaluate and perhaps find a better deal. Instead of using credit, you’ll avoid having to pay interest too. You’ll have more money left over to pay your bills on time and won’t have to deal with the consequences either.
8. Limit Your Credit Card Purchases
Managing money is learning how to become a good spender. If you classify yourself as a bad spender, shy away from using your credit cards for purchases until you learn better habits.
If you run out of cash, don’t just turn to credit cards right away. This can cause more financial harm in the long run. Think twice before spending money on something you really cannot afford or do not need right away.
9. Split Your Direct Deposit
Do you get direct deposit through your employer? If so, you may want to consider setting it up, so a percentage goes into your savings account. This way, you can set it and forget, and before you know it you’ll have a decent amount in there.
There are certain services that will you let you allot a certain percentage to cryptocurrencies like Bitcoin or Ethereum.
10. Practice Budgeting to Zero
Here at King Cash, we recommend practicing budgeting to zero so that you don’t have a dollar left to spare. By giving every dollar a home, you give every dollar a purpose.
For example, if you earn $5,000 per month, then your fixed expenses, investments, and saving contributions should be budgeted accordingly.
Managing Money Starts and Ends With You
Your managing money journey starts and ends with you. It’s important to remember to focus on what developing a positive relationship with money will do for you. What do you want that to look like?
When you have all your ducks in a row, you can have peace of mind. Let King Cash guide you with all your financial needs. Check out our blog to stay in the loop.