It’s 1st of the month and you get a message on your phone saying that some amount has been credited to your bank account. You already know that the message is speaking about your salary. So you have the salary but you also have a very long ‘things-to-do’ list. Although, the goal is to do everything mentioned in the list and still be able to save some amount. Nothing of this sort actually happens! There is always some issue, either we run out of cash before the month ends or the money is just not sufficient to do everything mentioned in the list. So, this calls for the management of finances.
Let us have a quick look at the tips that can make us manage our finances better:
- Save first and then begin spending: This is one of the best ways to ensure you have savings. Save some portion of your earnings and then wisely spend the balance.
- Prioritize your “Things-to-do list”: Your things-to-do list contains a lot of items. Prioritizing your list can help you save on money. This is because you would know the things that require immediate attention and would not spend on some other less important ones. So, this makes you spend wisely as well as in a more sensible way.
- Maintain an expenditure sheet: Sounds obsolete? But doing this will do wonders. You would actually get to know the things on which you have been spending unnecessarily and the things where you can cut down your expenses and still live the same way you were living; with being able to save some additional amount.
- Repay your debts: When you manage to save the additional amount, the best thing you could probably do is to repay some portion of your debt with it. Doing this does two things; lessens your debt and also you don’t have to worry about taking money from somewhere else to repay.
- Invest money in Recurring Deposits: Saving a portion initially is absolutely fine but you need to be smarter. Apart from this amount initially saved, invest money in recurring deposits. Doing this will ensure that you put in some amount in your RD account every month and earn interest on it.
- Pay by cards or digital wallets wherever possible: If you pay by cash, chances are less that you will earn any credit points. On the other hand, if you pay with cards and digital wallets, you earn the credit points from respective banks and also receive cashback on your digital wallets. With the credit points, you can do this like pay for your movie ticket etc. and receiving cashback ensures you are earning from your spending itself.
- Shop smart, shop online: No doubt the era is all tech savvy and actively online. Shop online. There are a large number of deals which are better online and help save you good amount. The probability of saving on money after shopping is high here than you would save elsewhere. Plus, if you shop often, you automatically avail yourself certain discounts and perks.
Also read: Know what the top 10 crucial financial moves are before hitting 30.
Earning money is not easy but spending the earnings is quite an easy task. Spending is equivalent to an art. I would personally say that, “you aren’t necessarily rich if you earn more. But if you spend wisely, you are richer than the ones earning more than you.” These 7 tips would surely help in managing your finances better and better is nothing but always one step close to the best.