There is an art to money management and managing finances. Sometimes, it can be tricky figuring out how to manage your finances, especially when those finances are limited. Understanding how to manage finances is more critical now, more than ever, primarily because of the economic effects of Covid-19. Due to the coronavirus pandemic, sadly, some companies have had to cut back on staff salaries. In some cases, due to the lockdown, some businesses have been closed for the last few months. As you might imagine, this has put a lot of workers on edge financially. So, in this post, we will explore seven money management tips that could help with managing finances. We hope you find them useful in these troubled times.
A lot of people are going through difficult times all around the world today. The lock-downs effected around the world to stop the spread of the coronavirus also affected national economies. Thankfully, with the worst of the COVID-19 pandemic behind us, most lock-downs are gradually being lifted and work should resume shortly. Regardless of where you are, we encourage you to keep hope alive. Things will get better. This is a Message of Hope for Troubled times we posted some weeks ago. We hope it encourages and helps reignite your hope.
Also, here are some related posts we’ve written in the past. We believe you’ll find them equally inspiring:
- Seven Things to Do if you Lose your Job
- How to Discover your Purpose
- Seven Steps to Starting a Freelance Business
- How to get through Tough Times in Business
- How to Build an Online Presence for your Company
- Five Job Skills needed to Succeed in a Post-Coronavirus World
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With that said, we will review seven money management tips to manage finances in the next section.
Seven Money Management Tips to manage Finances
Regardless of how much money you have, managing finances requires discipline and commitment. There is a funny saying that rich people did not become rich by giving their money away. While this is not completely true, the principle behind it is true. Most rich and wealthy people are disciplined and frugal with their finances.
Here are seven money management tips to manage finances:
- Understand your current Financial Situation: Before considering how to manage your finances, first review your current financial status. By this, we mean you should put together a list of steady sources of income and regular expenses. Doing this helps identify how you make money and what you spend it on.
- Create a Budget: As you’ve probably heard several times, having a budget is a great way to manage your finances. That’s because it identifies your goals and priorities and helps with allocation of funds to meet them. Besides this, budgeting also helps with making plans for the future by allowing you to save towards such goals.
- Manage your Expenses: Another excellent money management tip is to manage your expenses and cut down on unnecessary spending. For example, a considerable amount of money could be saved by cooking at home, as opposed to eating out daily. By identifying such expenses and reducing their frequency, you can save a considerable amount of money.
- Have a Savings Plan: Managing finances also means redirecting resources. This means putting money no longer used into some sort of savings account. Most professionals recommend that you save 10 -15% of your regular income. We recommend that you decide how much to save and do so consistently. Such savings can be geared towards a nest egg, emergency fund or some sort of savings for a major project.
- Start Investing: Saving money is good. However, making your money work for you and produce more money is even better. In general, this is called Investing. Investing is a great way of generating income that can be used in the future.
- Be Accountable: Having someone you are accountable to is a great way to keep yourself on track financially. Being financially accountable means having someone that checks your income, expenses and investments and gives financial advice. Generally, this should be someone with the right expertise and a background in finance.
- Establish an Emergency Fund: Last of our money management tips is to setup an emergency fund. An emergency fund is exactly that; for emergencies. Unexpected things happen. In such cases, it’s always a good idea to have funds that can meet those unexpected needs. Along with your regular savings, setting up an emergency fund is financially responsible.
What money management tips do you used to manage your finances? Are there additional tips you use that are not included in our list? Feel free to leave us a comment with those tips. As always, we would love to hear from you.
Today’s Funny Quote
Our funny quote for today is by Wendell Johnson, the American Psychologist, Actor and Author. He said
Always and never are two words you should always remember never to use.
Do you always remember never to use the words always and never? Let us know if you get this joke by leaving a comment at the end of this post.
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Have a great week ahead and we will see you again later this week with more inspiring, motivational, and funny posts.
Remember to stay safe out there.
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