How to Manage Your Money:
Creating a budget for you is the best way to save money, and it does not have to be difficult! Here is how it works:
1) Keep a track of how much you spend each month.
Simply write down every purchase you make during the month, including card and cash payments
2) Divide your spending into different categories each month.
Examples could be rent, bills, entertainment, groceries, and so on. This way, you can see easily what your biggest expenditures are each month, and what may be the best way to save money.
3) Compare your monthly income with the amount that you spend.
This will clearly show if you are spending too much compared to your income. Keep in mind that some months might be more expensive than others, especially when you have children and their schools are starting!
4) Make a list of expected annual expenditures.
Usually, you can predict when large expenditures are coming up, like Diwali or wedding seasons. So, simply write down the months of the year, and enter the dates and amounts you want to allocate for these periods.
5) Calculate how much you should save each month.
Based on the previous step, it is easy to calculate the amount you should keep aside a month – just divide the total expenditure amount by 12! Make sure that every large expenditure is on your list.
Tips to Save Money – Sticking to Your Budget
We all have good intentions, but there is no point if your budget is not realistic or if you have no intention of keeping it in the first place. The following suggestions will show you how to manage your money in a better way by keeping family costs down.
1) Round up all your expenditures.
This is one of the easiest ways to save money. Every time you make your budget or expenditure, round up to the nearest hundred, or thousand for bigger expenses. This way, you will be saving money without even realising it! This will definitely help out when you need some extra cash.
2) Have more than one bank account.
Spending money is easy when you have direct access to it – when this is not the case, you are less tempted to spend it or even mistakenly spend it. That is why it is a good idea to set up an extra bank account in which you keep the money you want to save, and have another bank account that you use for everyday expenditure.
3) Use your credit card as little as possible.
When it comes to learning how to manage your money, one of the first things you should realise is to avoid credit cards as much as possible. Credit card statements have to be paid back eventually, usually with a hefty interest, making it very difficult to keep track of your actual spending pattern. We advise against it!
4) Organise your direct debit payments and carry cash.
Direct debit payments are best to use for electricity and phone bills, and other predictable monthly expenditures. This way, you will not be able to spend it again, since it has already been subtracted from your account! Cash should usually be used for daily expenditures since you will truly understand how much you are spending. You could also withdraw cash on a weekly basis, and keep that as a weekly spending limit.
5) Make a difference between your wants and needs.
Sure, it might be tempting to purchase something because it looks good, but do you really need it? If you are really committed to saving money, you will need to think about what really is important to you. Next time when you are about to make a purchase, simply ask yourself: “do I just want it, or do I really need it?” When you do not really need it, consider not buying it – it will save you a serious amount of money in the long run!
6) Shop wisely.
Buy things on discount, and fruits and vegetables from your local market or vegetable and fruit vendor. Also, plan your meals around seasonal vegetables and what is on discount. Also, dals are an excellent way to save money and include healthy protein in your diet, so consider buying that more often, or in bulk to save more! Be conscious of your meals and you won’t have to sacrifice nutrition to eat at lower costs.
7) Bargain wherever possible.
You might spend a few minutes more, but you will see the result at the end of the month. On top of that, you should check offers for things you plan to buy – the internet is your best friend here! While you are at it, shopping online is a great idea, since it will also save you the travel cost and usually give you a good deal. All these are great ways to save money, especially when combined!
Learning how to manage your money is not that difficult, especially with these tips to save money, it really does not have to be a struggle. Just plan properly, start today, and keep going at it!
- Keep an eye on your income and expenses – this is the first step to managing your money
- Good living does not need to be expensive! Cut back your expenses where you can, and you will still be able to enjoy the good things in life
- Sell off the clothes you no longer need, or simply donate them! However, you could also try selling them to other people if they are in good condition. Check social media pages for more ideas on selling your clothes
We understand that it is difficult to save money when you have a lot of people to provide for – that is exactly why we have some tips to save money to share with you. Just read on to learn different ways to save money quickly and easily!