Money Management Tips

In this consumer driven society, we encounter diverse kinds of people. There are shopaholics and there are window shoppers. Both of which would be enormous hypocrites if they ever swore by the phrase -“Money is the root of all evil.” Nothing else would blow their joy bubble more than a fresh mountain stack of currency. However, let’s not rule out the pragmatists. They are clever, rational and insensitive to marketing gimmicks. They play their cards well and are gifted with the in-built notion that “Money does not grow on trees”. Of course, it is important to think ahead and tow in more 0’s to our bank accounts. Nevertheless, is it really necessary to discard precious notes over frivolous products? A citizen who budgets well makes remarkable savings every year and accumulates wealth for the future! Developing commendable money management strategies is not a very big challenge. All one needs is a little self-control and a level-headed thought-process. Money Management is an art that reaps countless benefits and will help you achieve financial harmony in life. Here are some valuable money management tips which you should practice!     

How To Manage Money

The Little Things That Make All The Difference
Do you forget to switch your fan and lights off before you march to work, leaving the fan to rotate aimlessly and the bulb to illuminate an ant’s lost path? The production of these wasted kilowatts not only contributes to power shortages and global warming but inflates your electricity bills. Train yourself to tap every button on your switchboard towards the “off” position before you exit your residence. This applies to the socket of your cell phone or laptop charger as well.

Appreciate A Coin’s Worth
As people shed thousands and thousands on expensive cars and clothes, it’s time you take a deep breath and contemplate the worth of a coin, the lowest denomination. Go back to your younger days, buy a piggy bank and drop in the change you acquire after grocery shopping. Break it open after a few months and be amazed with the full amount! A coin that you would cast aside without thinking twice is the base of your money tower. Never underestimate the worth of 50 cents. Dig into the pockets of your jeans and discover another 50 cent. Voila! You have a whole dollar now. Go buy a cookie and a soda pop!

Invest In The Best!
While others invest in game shows and lotteries that hold a zillion in one chance of winning, be the wise one as you invest your money with a given return and then reinvest your earnings as you receive them. Do not be too hasty and rush into an investment proposition that appears lucrative on the surface. Follow your instincts but think rationally at the same time. Remember that you have to assume a fair amount of risk in order to earn high rewards.

Let The Computer Take Charge
Computer programs and sophisticated technology greatly aids one’s endeavours in managing money properly. They provide you with unmatched information and guidance in organizing money matters. From balancing check books to paying taxes, computers can be a lifesaver and deter you away from making regrettable mistakes.

Save, Or Else Start Digging Your Own Grave
Keep an eye on where your income goes. Try building a good credit reputation by controlling bad spending habits and clearing all debts beforehand. Never go overboard with debts and don’t be enticed by every product in the market. Save to lead a beautiful life in the future. Moreover, it is crucial to save cash for unexpected events and emergencies. Sometimes we fall ill and need to pay off fat medical bills. Maintaining fixed deposits is the best solution to dealing with unexpected circumstances.

Track Your Income And Spending
Add the number of cheque stubs you have for a quarter year and divide by 13, the number of weeks in a quarter. This gives you a wider view of your earning power. Once you get this, perhaps you could find out where your money goes. Make your first purchase a small notebook and pen you can carry in purse or pocket. Record it all and make suitable alterations. Pay bills on time to avoid late fees or look around for and switch to credit cards with lower rates.