Barinaalice
New Member
Every person who has a steady income should have a plan so as to manage his or her expenses effectively and save money for a rainy day.
Money management tips that have been proved to be helpful:
A. This is the most basic and simple rule to follow. Pay all the bills on time in order to avoid any late payment fees and interest charges. These could be loans, utility bills, credit card bills, etc. When it comes to credit cards, it is always advisable to pay the outstanding balance in full so as to avoid the high interest rates.
B. Make a list of the all the expenses that are necessary and cannot be avoided. Compare the total with the income and check the difference. Keeping aside a small amount for emergency expenses. There may be many situations which cannot be predicted and one needs to have some cash in hand to deal with these.
C. The remaining money after the above has been kept aside should be saved or invested for the future. This should be a fixed amount that one should always stick to every month.
D. Always avoid expenses that are not necessary such as costly watches, mobile phones, etc. Eating out frequently is another important factor that affects the expenses a lot. Home cooked food is much cheaper and healthier, too.
E. Though a credit card seems very easy to use when one goes for shopping, there is always a chance of someone spending more than what has been planned. Using cash instead of cards on such occasions is a very good alternative.
F. Whilst applying for a loan, make sure to compare all the alternatives and settle for one that has the lowest interest rate. There may be a small difference in the same; however, in times of need, this could be very helpful.
G. Whilst investing, identify the short term and long term goals. This way one will know how much to allocate to each of these goals. Short term ones may include marriage, children, their education, etc. and long term goals are income after retirement, medical aid in the ripe years, children’s marriage, etc.
Money management tips that have been proved to be helpful:
A. This is the most basic and simple rule to follow. Pay all the bills on time in order to avoid any late payment fees and interest charges. These could be loans, utility bills, credit card bills, etc. When it comes to credit cards, it is always advisable to pay the outstanding balance in full so as to avoid the high interest rates.
B. Make a list of the all the expenses that are necessary and cannot be avoided. Compare the total with the income and check the difference. Keeping aside a small amount for emergency expenses. There may be many situations which cannot be predicted and one needs to have some cash in hand to deal with these.
C. The remaining money after the above has been kept aside should be saved or invested for the future. This should be a fixed amount that one should always stick to every month.
D. Always avoid expenses that are not necessary such as costly watches, mobile phones, etc. Eating out frequently is another important factor that affects the expenses a lot. Home cooked food is much cheaper and healthier, too.
E. Though a credit card seems very easy to use when one goes for shopping, there is always a chance of someone spending more than what has been planned. Using cash instead of cards on such occasions is a very good alternative.
F. Whilst applying for a loan, make sure to compare all the alternatives and settle for one that has the lowest interest rate. There may be a small difference in the same; however, in times of need, this could be very helpful.
G. Whilst investing, identify the short term and long term goals. This way one will know how much to allocate to each of these goals. Short term ones may include marriage, children, their education, etc. and long term goals are income after retirement, medical aid in the ripe years, children’s marriage, etc.
