Are you having trouble managing your money?

managing your money

It’s normal, and it’s far from easy! So how do you manage your monthly budget or your money?

The secret to getting there? Simplify your finances.

The more you simplify them, the easier they are to manage and, therefore, good health.  Simplification is the keyword to manage your budget or the family budget better.

But before we begin, I have to warn you of something. Once you start simplifying your money management, you won’t be able to stop!

Yes, by simplifying your money management, you also simplify your life.

As a result, we save more, we spend less daily, and life is getting easier little by little because money is running out less and less.

Here are six simple and practical tips to better manage your money and never run out of it again. Look :

  1. Focus on one goal at a time:

Typically, people often have more than one financial plan at the same time.

They try to pay off their debts, put money aside, save for retirement, save for their children’s education, and save for a wedding.

Suffice to say that it is mission impossible and very discouraging!

Instead, try to put all of your strength into just one goal at a time. If the goal is to reduce your debt, focus on reducing your debt.

If you are saving for a real estate purchase, then put all your energy into keeping as much as possible for that purchase. Simplify, focus your efforts, and prioritize one goal at a time.

With this technique, you will gain confidence in yourself because you will see that you are moving towards the only goal that you have set for yourself.

Once you have achieved this 1st objective, continue your momentum and move on to the next one.

READ: Money Management Tips 

  1. Keep one bank account:

Do you need two checking accounts, four savings accounts, and three retirement savings plans? I seriously doubt it! No wonder many people have trouble keeping track of their finances!

How do you want to navigate quickly when you have many accounts to manage? It’s hard enough with just one, so with several in different banks. The best is to have one single current account, one single savings account, and one single retirement savings plan, and that’s it!

  1. Cancel all your credit cards:

Yes, you read that right. I said cancel all your credit cards.

Why?

First of all, there is less risk of identity theft and scams of all kinds. But that’s far from the only advantage.

You also have fewer accounts to manage at banks with questionable practices, more periodic bank fees to pay, and less paperwork to handle.

Not to mention the price of credit cards that are not given! Your best bet is to have just one debit card and pay as much cash as possible.

  1. Pay all your bills on the same day:

When we look at our debits, we realize that the bills are debited throughout the month. The telephone on the 5th of the month, the Internet subscription on the 20th, etc.

The concern is that this does not allow you to anticipate expenses. So the idea of ​​this trick is to pay all your bills on the same day. Choose, when possible, the same debit date for all your invoices.

I also use it to pay the monthly mortgage payments. Some invoices are a bit more complicated to pay in advance but trust me, it is with great pleasure that most companies accept payment in advance.

This method can drastically simplify your daily life and save a lot of time. And it is even easier to implement if your budget is established from the previous month’s income.

READ: Sony Wireless Headphones

  1. Always think about the overall cost of an expense:

When making big purchases, never think about the expense’s monthly fee, but rather the total cost.

Why?

Because talking in terms of monthly payments is a marketing technique to make you believe that a service or a product is cheaper.

Therefore, it is smarter to think, negotiate and buy in terms of the total cost or the lifespan of the product in question. This allows you to understand the full price of the product in question.

This tip also applies to contracts and various subscriptions. Always ask yourself the question: what is the total price I will pay? Again, this tip will help you make fewer impulse purchases, not burden yourself with unnecessary things, and most of all, spend more periodic monthly payments.

  1. Make your budget using pen and paper:

This is a method of managing a budget that I adopted recently, and I must admit that it is super useful.

Here’s the logic behind this trick: If you can’t get your budget down on paper, it just means your budget is too much to manage. This method will force you to establish much broader expense categories.

As a result, this will encourage you to reduce your monthly expenses, as they will appear more important than if you had many types. Besides, unlike a computer screen, writing the details of your budget by hand allows you to better “integrate” it mentally and better understand it.

One Bonus Tip:

  1. Clean up your “press” subscriptions:

Press subscriptions are disingenuous (especially the cheapest) because they can quickly add up and represent a considerable cost.

Therefore, beware of press subscription offers that give you a few months free. Indeed, once you are in the magazine’s customer files, they will never let you go so that you subscribe at full price!

Final Verdict:

I hope these six tips + a bonus tip will help you manage your money. Besides, there are other money managing tips that I could share in this article. Instead of making things complicated, I thought to share these easy and understandable tips that you can implement into your personal life to improve your finance. These tips are based on my personal experience and which I use to manage my money.

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