Tips to Best Manage Your Money – Dealsofloan

Financial Management is a subject taught in the higher studies, where as it is something which needs to be practiced from the early stage. It has been observed in a considerable part of the cases, that there is no retirement plan as such and thus managing finances during the time of retirement becomes cumbersome. In some cases, the estimates to support themselves after retirement get mismatched due to several reasons. One prime reason tends to the miscalculation of the entire finance needed to support lifestyle. Even for those, who are not old, have to think on this aspect of the finance, as savings, investment and better management of money is highly needed in this unstable and fast changing economy. Who knows when the next long prolonging recession will knock at the door?

Tips to Manage Your Money, Savings and Investment

Here are several tips which can help you out in the better management of your money, savings and Investment.

Make a Budget

Budget making is one of the most important aspect for the better management of your money. For this, you can keep track of your expenses and earning for a month or two. Tracking is all about getting an idea on what you are spending on, and what part of the earning goes as expenses. Don’t limit your expenses, while making a budget, live free as you like to as it allows you in better calculation of your expenses. At the end of the month, just have a glimpse of what you spent on, what is the money you’re left with. You can also make a list of all expenses during the time concerned and make a detailed report on what you spent on.

You need to work out on details like:

  • Household bills

  • Living costs

  • Transportation costs (Fuel)

  • Leisure expenses (Dining Out, Movies)

  • Financial products (Monthly EMI)

  • Other small expenses

You can use paper and pen to write down all money spent on, or can even adopt a method to collect all bills and transactions done and calculate at the end of each month. The choice is surely yours!

Regarding savings, you need not to limit yourself in an effort to save more. Just take a look at the money you’re left with and get an idea, of where you wasted your money. Regarding savings, there are reports suggesting that one should save at least 25% of their income. However, it varies as per total income, the more you earn, the better you have the chances to save more.

Pay off Loans and Credit Card Dues

If you have loan or credit cards dues, the sooner you pay it, the better it is. It makes sense to clear all your dues and get rid off all unwanted interests being charged on those loans. Always remember that the interest rates on credit cards are on a very higher side. Thus, paying dues well on time will be a better idea.

Set a SMART Saving Goal

Setting up a SMART (Smart, Measurable, Achievable, Realistic, Timely) savings goal is the first step towards a better life and also a secure future. All you need is to go into a habit of saving a certain percentage of your income towards the good investment schemes. The savings can be around 25% of the total incomes. Create a habit of saving your hard earned money in some good schemes, where you and your family get a good return in the upcoming future.

When we talk about the savings, there are different kinds of savings; one which is an emergency savings, which can be used during the times of emergency and keep in note that such kinds of savings must always be accessible even during the wee hours. Second type of savings can be in the form of short term investment thus giving you an immediate return in very near future. The third can be a long term investment, proving to be a life changer in the long course of time, which has the capability to assist you during your retirements etc.

Investment Scenario

While investing your savings, always try to diversify your savings in various investment plans. Keep a track of those investments and try to evaluate, which kind of investment is returning with the most profit. Diversifying your savings towards different investment schemes allows you to control your losses (as there may be some investment schemes, which does not come good for you). Familiarize yourself with the smart investment and learn different investment options available to you or you can explore. There are varieties of options available at your disposal, varying from riskier ones to the less risky ones and some sophisticated ones. The more you try to gain information on financial instruments and different possibilities, the better you can be in terms of investment.

Daily Money Minute

A proven technique adopted by LearnVest founder and CEO Alexa Von Tobel, set aside each minute of 24 hours available, in keeping a track of financial transactions, which in a way helps her in better evaluating the root cause of her financial troubles, keeping a track record of goal process and help you straight in spending tone for the entire day.

Set a Financial Goal

Setting a financial goals on a quarterly basis or annually, lets you in keeping a track of where you are heading towards. Financial goals in a way help you in deciding on how much you want to save and by what date? An accomplishment towards your money in a better way, isn’t it?

Just get yourself motivated towards the savings and don’t worry in saving straight away. It can be a little worrisome if you are not earning much, but managing things in a better way allows you to prosper in long terms. Income very rarely tends to decrease and thus you always have a chance to grow your savings and use it in a better way!

Please follow and like us:
Facebook
Twitter
LinkedIn
Google+
http://www.dealsofloan.com/manage-money-savings-investment/
Follow by Email
0
Connecting
Please wait...
Send a message

Sorry, we aren't online at the moment. Leave a message.

Your name
* Email
* Describe your issue
    Login now

    Need more help? Save time by starting your support request online.

    Your name
    * Email
    * Describe your issue
    We're online!
    Feedback

    Help us help you better! Feel free to leave us any additional feedback.

    How do you rate our support?