Contributed by Martha Davis
Quality of our life is dependent on our financial stability and the way we carry ourselves with it. Life is unpredictable, where it can bring splendid joy, it can also confront us with tremendous sorrows. Things happen in a blink, and before you know it, you find yourself getting sucked in this whirlpool. It’s these blends of light and dark that make every moment of life lively. Most of us live an average life, sometimes hectic and sometimes joyful. We have to put up ourselves against the ups and downs of it without losing the enthusiasm of living it. Improper management of your money can lead to instability of your life but thorough money management can increase the quality of your life. You can afford things, plan for your future and know how much of your money is going out and coming in. It’s always wise to understand and have a picture of your expenses and income. Managing your money is beneficial in terms of long term savings. That’s the ultimate key to managing a healthy and stable life.
Before you do anything, consider understanding your position. Just like the income differs from person to person, expenses are also diverse. You must have a proper calculation of what you require or how much you spend on an average in comparison to your earning. It shall give you a draft in measuring your priorities to get a clear perception of your financial needs. Most people don’t know how much exactly is their need and how much are they spending.
Money management is no Maths. All you require is a little bit of time to plan your expenses for the whole month. Create a budget that caters to your needs. Budgeting is instrumental in managing your money as it allows you the liberty to meet your ends and puts you at ease. You don’t have to worry about overspending if you follow the budget. It gives you a final picture of how much you are supposed to spend on a particular thing.
Make use of your job
Employers have had an upper hand in terms of employment. Don’t be afraid to ask for a raise. You don’t have to settle for low, and the world is full of requirements for talented people. Understand how much you’re getting paid and how much you should be. Make use of your skills in the office and don’t be a status quo type.
Working a second job can be a milestone for you. If your job isn’t meeting your expectations, find a side job and depending upon the time requirement, you can work. Working as a driver with Uber is one example of a side job. And on top of that, if it’s a job that you like, it would spare you of the hard work and boredom.
Spending habits and debt
Keep track of your habits and follow your spending activities. Sometimes we can’t buy what we want, but we can always look for alternatives. Extravagance can end up in debt. See if you have any debts and work towards repayment. Contact ivas if you find yourself unable to navigate the debt situation. Start by paying off the loan with the highest interest and the smallest loan and eventually move towards others, if you have. You can ask your bank to reduce your credit card interest.
Life is unpredictable, and emergencies don’t come with an invitation. A proper money management plan stabilizes our lives. If you live in a house or your car breaks down, the repairs can take 100’s or 1000’s, and without a backup plan, it can put you in debt or leave with a hole in your pocket. Above all, medical emergencies are important, and bills can reach up to skies. You need to maintain an emergency plan that not only caters to your house or car repairs but is also prepared to cover your medical bills in an emergency or cover your living expenses in case you are struggling between jobs.
Spendthrift is not the trait of money management. Try to reduce your regular costs such as phone bills, memberships, and restaurant expenses. You can always manage with what can be prepared at home. Negotiate in prices and prefer cash instead of credit.
Keep following the budget. Identify the unnecessary habits, see what is working and find new ways to pay off debts. You can start by asking a reduction in interest rates from the bank and plan to accelerate your monthly income. Buy stocks if you can and lessen your vast expenses.
Money management is no rocket science. With a few hours every month, it can help to save money and spend it more responsibly. From credit card expense to our daily expenses, if applied can prove to be a boon.
Contributed by Martha Davis. The ever-evolving world has ever-evolving needs, and these needs can only be met when we know how to manage our finances. Teaching students Economics for 10 years now, I have witnessed how young people struggle to handle the intricacies of their finances. Therefore, when I am not too busy imparting knowledge about the world economy, I spend some time writing articles on effective money-management skills. It has been a joyous ride so far.
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