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Money Management - How to Manage Your Money During These Trying Times

When it comes to money management, there will be hard times and there will be times when you can loosen up your tie a little bit. But because of the trend in markets across the globe today, it might be wiser to roll up your sleeves instead.

To get you started on money management and all of the things that goes along with saving up for a rainy day, here are some of the things that you have to know by heart and apply in your life if you want to keep your head above water in these trying times. These are the ways by which you can live and still be a master of your own finances.

Set a Budget

This is one of the things that people seem to ignore, but it is in fact an integral part of money management that needs to be sorted out before other financial issues are taken into account. Setting up a budget is easy, but it should not be disregarded entirely.

In setting up a budget, you must make sure that you are spending less than what you are earning. Your budget should constitute about 90 percent of your entire earning, and about 60 percent of your earning should be set to for your basic necessities such as bills for utilities like water, electricity and phone and rent, and your daily food allowance. The other 30 percent is then dedicated to your luxuries or the things you want such as leisure allowance, clothing, books, and other recreational items and costs.

Join a Credit Union

If you are serious about cutting down costs on your credit card and savings as part of your money management schemes, what you need to do is to join a credit union. A credit union is a bank that is being funded by people as a union. Because of this, the interest rates for deposits can be higher, while the interest rates for credit card bills and penalties will be significantly less.

When you consider switching from a regular bank to a credit union, what you need to do is to first join a credit union before letting go of your current bank or credit card provider. This way, your credit reputation will be kept intact and in the long run, you will have the right to loans and other financial assistance privileges offered by private and non-private entities.

Pay more with Cash

Even if this is the generation when there are a thousand ways to pay off for those purchases, cash is still an option that you would need to use more of. Unlike card payments, cash is a payment scheme where you wouldn’t expect more payments on top of what you bought. This is also the preferred payment schemes of merchants and stores, since it will be easier to manage cash than to manage credit or debit transactions.

Money management through cash payments is also great because you only get to spend on whatever covers your means. When you use your credit card or if you enroll yourself in a loan, you are using up money that was borrowed and you are just living through a life filled with debt. Cash works best because it is the immediate source of money that you have, and you can only use up whatever it is that you have at hand.

When applying money management through cash payments, make sure to use the scheme in order to pay less and not to pay more. There are some offers from stores where you can get premium discounts when you pay in cash. This is indeed the perfect time to dole out your cash for the things that you need, or even for some of those things that you want.

Adjust Your Retirement Plans

Retirement plans are a part of money management that is rather hard to deal with. First, because it can cost a lot of money to lay the groundwork for a retirement plan and secondly, you wouldn’t know what the future holds yet.

When adjusting your retirement plans like the 401k plan and the company assisted retirement plans, always make sure that you are paying for a good premium. These retirement plans should offer you competitive interest rates that you can surely benefit from in your retirement years. When considering all the things that you have to do to manage your money, you should always save up for a rainy day and for your years of retirement. After all, the money that you set aside for retirement can help in cases of emergency, even years before your retirement age.

Managing your money is a serious concern that you should consider from this point forward, until the years to come. These money management ideas can help you start now and be ahead of your financial potential so that you can enjoy a life free from financial disasters.

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