My money management used to be appalling, I’ll be the first to admit it. I just enjoyed treating myself after payday and before I knew it, I was skint and I’d still have like two weeks until next pay day. But since actually putting some ‘rules’ into place to save for a mortgage, I have to say it has gotten better. Don’t get me wrong, I still enjoy the odd treat, but its all about knowing how much money you have to treat yourself and limiting yourself to not going overboard.
Here are a few things that have helped me along the way.
Money Management Tip 1 – Budget planning
Okay, so I know it may be a pretty boring thing to do but its the first step. When you get paid sit down and work out how much you have to spend on bills and must-haves. This will help you figure out how much you have left over for ‘treats’ or to put aside.
Money Management Tip 2 – Save, save, save
The thing with saving is not to completely restrict yourself from doing everything. If you do this, it’s going to get very boring, very quickly. Before you know it you’ll be taking money out of savings rather than putting it in. I always at least half my left over money, half for savings, half for me. If I’m lucky, I’ll get to the day before payday and still have money in the bank. What I do then is transfer this over to savings too, which makes me feel like an organised adult.
Money Management Tip 3 – Track your spending
So now you’ve got your money aside for bills and other necessities, keep an eye on what your spending. I find this easier by instead of paying on card for little things like coffee, draw the money out so it comes out of your bank there and then. So when you check your online banking later that night, or the next day you know that money’s gone, where as if you pay on card it may take 2-3 days to actually take the money out of your account.
These are just the basics which I used to get myself in order. I’m sure there are 100’s of tips around. If you have any money management tips I’ve not mentioned, be sure to let me know in the comments!
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