When you enter adulthood, you understand the struggle behind earning money. Despite putting significant efforts, when it comes to spending money, it seems that it just slips away from your hand like sand. There are several factors behind this tendency of spending more, especially in young adults. Here are some money management hacks for you, so that you make the optimum use of your hard earned money.
Plan your Budget
This is the most initial step in managing your finances. You should always plan how much you will spend and what are your saving targets. If in case you spend more in a particular month you should meet up with the savings, the following month. This would ensure that you have sufficient money at any time, especially in the case of an emergency.
Maintaining and following a spending plan keeps you from falling into debts, or if you are already under debt, it helps you come out of it easily. Making a budget ‘realistic’ is the most important part. Efficient budget making and financial planning leads to proper savings with which you can make long term financial goals like buying a new home, a four wheeler, planning a world tour or starting a new business.
Go with the Flow- Become Tech Savvy!
Using a pen and paper for budget making has become conventional and outdated. You tend to miss out things while financial planning. Thanks to the technological advancements, there are several applications for android and ios, which you can easily access on your smart phones. These applications are useful tracking your expenses and they also keep a check if you are sticking to your financial plan. Some applications worth trying are, Mint, BudgetSimple, Yodlee , Spendlee, Level and Expensify.
Prioritize Needs over Wants
Wants can always wait. Since most of you are just beginners in earning money, you get tempted to buy more and more without getting satisfaction. You feel like fulfilling all your wishes at once. But this isn’t practical. Whether investing into something you should first confirm that how much you need it. Wants can be met later when you have become more financially secure. It is likely to wish for expensive vehicles and dine in fancy restaurants. If you feel that fulfilling your wishes is important than what you actually need, you would definitely drain your pocket.
Maintain a Saving Bank Account
Once you plan on saving you should always maintain a saving bank account. They act as a source of fund in the time of emergency. They are not affected by market volatilities. You tend to spend less when you save into a bank account. Moreover you can easily pay your bills online, without worrying about standing in long ques.
Follow the age old ‘List’ system
Making a list of your day to day needs is a great measure to avoid unnecessary spending, moreover you don’t tend to miss important things or buy things in double. You are also aware of how much you are spending weekly or monthly. Doing so, you immediately realize when you go out of your budget plan.
Set Financial Goals
Setting long term goals will encourage you to save more. It serves two purposes, which are avoiding unnecessary expenses and also enables you to save more to fulfill your long wished dreams. Buying a new home, a four wheeler, starting a new business, planning a world tour are a dream for many. Trust me, this hack would definitely prove useful in the long run.
When you target to manage money more efficiently, you tend to make smart moves. These can be using a calculator while shopping, making a list for the needed item, setting aside a budget for less required items and most importantly looking for discounts. You can buy really cool branded items during festive sales, saving good amount of money without compromising with the quality of the product.
Prefer Homemade Meals
Dining out with friends and family is a good way to relax and detoxify of all the stress and negativity. But, this should not be a routine affair. Most people end up spending more, without even realizing as they develop a taste for readymade meals and have less time to cook for themselves. Try cooking at home, as you will not only save a handsome amount of money but also intake good quality of food meeting the health standards.
Stay Fit, Exercise More!
This is a fun way to save more. Imagine having two options paying a medical bill for body pain or gifting self a luxurious spa. You will never opt for the former. By exercising you will keep your body and soul happy, boosting immunity and keeping diseases at bay. You would end up spending very less on medical bills, thereby saving more for other better options.
It is not easy to earn in this competitive world. Nor is it easy to live without unfulfilled dreams. Managing money is the wisest step you can make in your lifetime. These are not the only hacks you have to follow for efficient saving and wise spending, instead you can invent hacks of your own suiting your job or business.