Check out the four things that you can do to better manage your money. Your expenses and even your personal savings can be prioritised.There is more than one way to track your money. Get your money management tips and advice in the following article.
Pay the fixed monthly expenses first
Whether you are studying or working, you must have a source of income every month to pay for your monthly expenses. This income typically comes in at the beginning of the month. Regardless, use the money to pay for the fixed expenses first. These are usually the 'big' amounts like: 1. Rental or housing loan installment 2. Car loan installment 3. Tuition fees 4. Insurance These expenses are related to your present standard of living and whether your payments are timely or not, they have to be made. So, you may as well do it systematically, as soon as you receive your monthly income. Defaulting in this area can result in a loss of lodging, means of transportation amongst others, affecting your livelihood.
Pay yourself too
Do you have a habit of saving a certain amount of money every month? If so, you should make this a part of your fixed monthly expenses. In other words, not unlike paying for your lodging or car installment, you pay for yourself too. How it works Just as you would bank in or transfer money to the landlord or bank, deposit a fixed amount of money into an account that is under your name, every month. Open a fixed deposit account just for this purpose. Why should you pay yourself last or worst, do you pay yourself only if you have money that is left over? With this mindset, you almost guarantee that you never get paid. You deserve priority. The amount is negotiable, but it should be a fixed amount.
Use a budgeting software program
You can use an online service or create a spreadsheet for this purpose.
The purpose is two-fold: 1. Plan or budget your expenses 2. Track your expenses You already know about your fixed monthly expenses, so these are definitely budgeted for. Plan for your other expenses. How do you know if you are following your plan? Track them.
Avoid interests, fees and other charges
Payments like interests, fees and 'other charges' are avoidable if you make timely payments. For emergency cases, write to the company beforehand (if possible) with the supporting documentation to have these waived.