Many people struggle to manage their money and as a result end up with huge amounts of debt or even worse become bankrupt. It is therefore extremely important to manage your money properly to avoid such disasters. Below are a number of ways to help you manage your money sensibly.
How To Manage Your Money?
- The first and most obvious thing to do is save your money, this way you will have money put aside for the things you want or for cash emergencies. The best way to save money is to open up a savings account where you can subtract a certain amount of money from your pay packet each month and put it straight into the savings account. Over time you will find that you have a fair amount of money in the account.
- It is important to work out all of your outgoing costs and prioritise them in order of importance. This way you can decide which outgoing costs cannot be changed and which ones you can alter or remove completely. For example: your mortgage would be at the top of your list and non negotiable, your shopping costs however could be decreased by buying only what you need and things like your cleaner could be cancelled altogether as you could do this yourself.
- There are always things that we want in life that we don’t necessarily need. For example: we all enjoy listening to music and watching films so will often buy a new CD or DVD. There are cheaper ways of doing this though by borrowing them or renting them out. It can however sometimes be cheaper to buy a DVD or CD second hand from the likes of charity shops or rental shops.
- It is important to take out home insurance and goods insurance to protect your belongings. Insuring your valuable items means that if they are stolen, accidently broken or faulty etc the insurance will replace the items or cover the cost. Without insurance you will lose your items and lose out on the cost of your items.
Nobody likes a purse or a pocket full of pennies as it can weigh us down and make a lot of noise. Don’t however resort to throwing them on the floor, wasting them in the arcade or giving them away. Pennies make pounds so keep your pennies and put them into a jar when you get home. Over time your jar will fill up and you can then have the money changed into cash at a bank.