8 Money Management Tips Anyone Can Follow

money management tips

Many people find it difficult to manage their finances well. Actually, in some cases people hate it so much that they will find any reason not to do it. But here’s the thing – managing your money well is not that difficult. Actually, once you start doing it on a regular basis you will find that it is quite simple. Some may even say it is fun. And the more time and effort you put into managing your money well, the better you will feel, because you will be in control of your money. And once you are in control of your money any fears you had that were related to money, or lack of money, will disappear.  

8 Money Management Tips to Help You Gain Control

Here are eight useful money management tips that anyone can follow.

Be As Organized As Possible

Some people feel the best way to manage their money is by having multiple bank accounts with each one designated for different things.

I think it is best if you have as few bank accounts as possible because it makes everything easier to manage.

But if you have multiple bank accounts, getting organized can really help you manage your finances.

Use an official email for all your bank statements, bills and online banking receipts.

Also, check your bank accounts and credit card accounts frequently to make sure you know exactly where you stand.

You should always know how much you have in your accounts, even if you are too scared to look.

Know how much you spend on different items like rent, transportation, and meals, and write them down.

Keep a record of your financial documents. Also, remember to pull your credit score at least once a year and review it for any mistakes.

Create A Budget To Work With

When you know how much you have to work with, you can then allocate your money to different things. Set aside a percentage for daily expenses, rent and transportation.

Set aside some money for the future and allocate a small percentage for your personal expenses.

Stick to your budget and track your expenses as they happen.

Protect Yourself by Buying Insurance

Protect yourself by buying insurance—be it health insurance, life insurance, or property insurance.

Having the proper insurance coverage in place protects you from risk in the future and saves you money, too, in the long run. You can do a bit of research on the Internet or ask friends or family for a referral and find the best deal for you.

Keep An Emergency Fund

Set aside money each month as part of your emergency fund. Include it in your monthly budget. Make sure it’s only for real emergencies. You’ll never know when it might come in handy.

Start Saving For Your Retirement

You can consider individual retirement accounts or, if you’re employed, look into possible options with your company.  Starting your retirement fund early means you’ll have more money in your golden years.

Manage Your Expenses

Only buy things when you really need to. When going shopping or buying groceries, make a list and avoid buying things that are not on your list.

Impulse purchases can skew your budget.  Always be on the lookout for discounts and specials.

You can also look for coupons that you can use to save money.

Pay Bills On Time

Avoid interest or late charges by paying your bills as soon as you receive them. Late charges are an extra expense that can be easily avoided.

If you’re comfortable with automatic payments, you can check with your credit card company or bank and inquire about how to set it up with your account. Make sure to ask about any possible service fees.

Keep Yourself Educated

Keep yourself up-to-date on new ways that you can manage your finances. Maximize the benefits of the Internet. There are a lot of financial management tools that you can use to help you track your income and expenses.

Start Managing Your Money!

Do you lie awake at night worrying about money? Do you worry about how you will pay your rent next month or feed your children next week? Guess what? You are definitely not alone. Whether the economy is good or bad, there will always be people that are worried about money and the worry usually stems from the fact that they simply do not have a clue of how much money they have coming in and how much they are spending.

But once you choose to take control and learn how to manage your money well, you too will sleep well.

 


Comments

    • John S @ Frugal Rules

      John S @ Frugal Rules 03/08/2013 7:07 a.m. #

      Great points Sicorra! I think we do all of them. I love the first point, being organized is key. I think that goes well with having a plan in place. Without it you're much more likely to not know what your money is doing.

      • Sicorra

        Sicorra 03/08/2013 1:22 p.m. #

        Being organized is very important. Many people have opened bank accounts at some point in their life and then completely forgotten about them even though they have money in them. Most likely because they weren't keeping track of things.

    • AverageJoe

      AverageJoe 03/08/2013 7:38 a.m. #

      I'm one of those "multiple account" guys. I've preached that in the past because too many people stir all of their goals into a single account and spend money for unimportant stuff instead of the right things. BUT I totally agree. It can become a mess. There are some companies out there (one the comes to mind is MVelopes) that will allow you have one account but still separate your money into different goals so you don't go overboard in a single area of your budget.

      • Sicorra

        Sicorra 03/08/2013 1:23 p.m. #

        MVelopes sounds very interesting. I will have to look into that.

    • Justin @ The Family Finances

      Justin @ The Family Finances 03/08/2013 10:26 a.m. #

      Great tips! I agree with all of them. You have to make money management a priority and follow through with the little things in order to make it all work.

      • Sicorra

        Sicorra 03/08/2013 1:28 p.m. #

        I agree, unfortunately many people live for years without doing it, and for some that might work, but many get into trouble at some point.

    • Shannon @ The Heavy Purse

      Shannon @ The Heavy Purse 03/08/2013 11:25 a.m. #

      Great tips Sicorra! You know me - I find managing money fun! Budgeting is my dear friend. :) Okay, I'll stop now. I generally advocate for minimizing the number of accounts you have, if possible. At the very least, make sure you have all your accounts clearly documented, so if something happens to you, your spouse or next of kin knows where everything is at. As you said, it can be scary looking at your finances, but paying attention and getting organized is the best way to get over your fear and take back control.

      • Sicorra

        Sicorra 03/08/2013 1:32 p.m. #

        Yes, you definitely chose the right career path based on your love of managing money. Like anything, it takes time to get organized if you have always avoided it in the past, but once you do things are much easier to deal with. So often our fear is based on the unknown, whether it is money or anything in life.

    • Brian @ Luke1428

      Brian @ Luke1428 03/08/2013 2:41 p.m. #

      This is a great list Sicorra. I agree 100% in that the more time and effort you put into managing your money the better off you will be. I find it very interesting that so many people complain about their money issues, yet refuse to do the basic, simple things you've outlined.

      • Sicorra

        Sicorra 03/08/2013 3:37 p.m. #

        Thanks very much Brian!

        Some people do find dealing with money to be a huge challenge for them and perhaps they feel that things will just sort themselves out on their own. Who knows. I was surprised the other night when I watched a TV show called Till Debt Do Us Part. The couple owned a business and personally owed a lot of money and they were so confused by it all, even in their 40's. It reminded me that many people struggle with this.

    • Maggie@SquarePennies

      Maggie@SquarePennies 03/08/2013 2:58 p.m. #

      Very good points! Keeping your budget in mind every day is so important. I ease up on expenses when possible and skip some activities if they are going to throw my budget out of whack. I don't mind it too much because I try to prioritize spending. So I still get to have fun even though I watch where the money goes.

      • Sicorra

        Sicorra 03/08/2013 3:39 p.m. #

        Hey Maggie, Thanks for stopping by!
        It sounds like you have your finances under control which is great. It certainly makes life easier, doesn't it.

    • Corina Ramos

      Corina Ramos 03/08/2013 3:04 p.m. #

      I used to lie awake at night worrying but not anymore. We've made a lot of adjustments and cut backs and because of all that we have managed to put back what we lost and I feel so much more secure.

      We have a retirement plan but aren't saving anything extra which I'd love to because our retirement plans include traveling.

      Now that I've learned how to be frugal it's kind of fun and little by little I'm getting better at managing our money.

      You've shared some great advice Sicorra!

      • Sicorra

        Sicorra 03/08/2013 3:45 p.m. #

        Thanks very much Corina! Good to hear that you guys have it all sorted out. I really like your point about it being fun. We try to do that as well by challenging ourselves each month to see how much less we can spend on groceries and such. Even today we are already talking about starting to set money aside each month for next year's taxes (esp after what we just went through), but in the past we wouldn't have had this conversation until much later in the year.

    • Mackenzie

      Mackenzie 03/08/2013 4:08 p.m. #

      "Do you lie awake at night worrying about money?" No, but we used to! Ugh, it was awful...I never, ever want to be in that kind of position again :(

      Great post, everyone should read it!

      • Sicorra

        Sicorra 03/08/2013 4:54 p.m. #

        Thanks Mackenzie! It is a pretty draining experience to worry about money all the time. Good to hear you have moved past that.

    • CarolB

      CarolB 03/08/2013 5:39 p.m. #

      Hi Sicorra, thanks for the great tips. We follow each and every one of them. Though, I have to admit, I fall down on the "be organized" one from time to time. The thought of carrying debt really sends chills down my back, so we try to avoid it as much as possible. Especially with cars! Hate car loans. My car is now ten years old, and no plans to replace it any time soon. My husband's car went to 200,000 miles before it "moved on."

      And that emergency fund is so very important. One never knows when a crisis can hit! Thanks for inspiring everyone to get their financials under better control.

    • krantcents

      krantcents 03/08/2013 7:17 p.m. #

      Great points! I have been managing my money since I was 7 years old! It is a love affair and it drives me to learn everything I can to do it better.

    • Laurie @thefrugalfarmer

      Laurie @thefrugalfarmer 03/10/2013 6:19 a.m. #

      Great tips as always, Sicorra! Having an emergency fund is my favorite - now that we've got one in place, our "peace level" has skyrocketed!

    • KK @ Student Debt Survivor

      KK @ Student Debt Survivor 03/11/2013 7:22 p.m. #

      I recently closed one of my bank accounts and moved all the money to my online savings account. Like you mentioned, it's easier to keep up with one account vs. two or three. Plus my bricks and mortar bank's interest rate was considerably lower than my online bank's rate.

    • Alan@escapingmydebt

      Alan@escapingmydebt 03/13/2013 2:10 p.m. #

      Hi Sicorra,

      It was time I got to your site as well. I think the one point you brought up that caught me by surprised was the protect yourself with insurance. Never thought about that and think it is a great point. The other seven are perfect for someone having discipline issues with their finances.

    • Francieidy

      Francieidy 04/02/2013 9:29 a.m. #

      Being organized is one of the most important steps when it comes to finances. If you're not organized, you can't keep up with your bills or your debts.

Comments are closed.