If you are someone who has been constantly asking- how to manage money wisely, you’re at the right place. Mo’ money, Mo’ problems, is better than no money mo’ problems, right? Well, how would you feel if we interest you in mo’ money, no problems? Sounds intriguing, doesn’t it? So fellas, wear a seatbelt cause we’re here to give you a ride on the most exciting roller coaster of all time for managing money wisely. Managing money isn’t really that easy, especially when you’re in the prime of your life where everything excites you. We could’ve written a book about “how to spend money wisely” but trust us, that’d just be a contradiction to the title cause we all know you would’ve never read it. so without any further ado, let’s get, set and go.
How to manage money wisely in 5 simple steps
1. Set up a budget
setting up a budget is the most important thing you gotta do. not only would you easily be able to avoid the embarrassment of asking for money from your friends but you’d also be able to treat yourself with a lil’ extra if you do the budgeting right. now, how exactly do we set up a budget? hmm, let’s see. bring a pen & a paper and start writing…….nah, we’re just kidding. It’s not the 1920s anymore. you can create a budget in your mobile phone itself. first off, we want you to throw the major emphasis on the money that’s coming in. now write down all your expenses, living, food, and miscellaneous costs, pretty much everything so that you know where you are spending your money and how to manage your money wisely make sure to track your expenses and create a balance. tracking your expenditure would help you stay within the budget line. it would also give you a fair idea of what your monthly budget looks like in the near future, eventually creating a wider scope of savings.
2. Save some bucks
Geez, these are the days you’re gonna live and we’re asking to compromise on that & save some penny. How dare we? Well, you’ll thank us when one fine day you’re walking down a street, you see a dress that you really want and you can get it. Or for any emergency moment, honestly.
Wondering how to manage money wisely for your future needs? Well, it’s really simple. You can start saving some money by something as small as cutting down the things you don’t require. Go open your fridge right now. We can bet that you’d find at least 5 things that haven’t been used for a long time. Stock up on only what you really require and that of course goes for everything, not just your groceries. Secondly, you can start a savings account and deposit a small amount of money every month. Use it in emergency cases like when you have a really important date with bae and you wanna dine out in the best restaurant possible. Savings is just like dieting, you find it impossible at first but then the end results are nothing less than a big fat treat. :p
suggested read: learn how to save money as a student with 7 great tips
3. Invest, Invest & INVEST
This is rather a later part of the entire money management chapter. When you feel that you’ve finally saved enough it’s time for you to let that money grow. Not many of us are aware, but the money that sits idly in your bank can give surprising gains when invested correctly. But of course, for this, one must have proper knowledge of how to manage your investments and take care of your money. The first rule of investing is to make sure that it’s safe. Although the investment world is a vast area to explore you can invest in cryptocurrency, stocks or mutual funds, we recommend you try out something as simple as Mutual Funds. But before you do that, make sure to give a proper read to the project you’re investing in. If possible, take an expert’s advice before you think to spend your savings on it.
suggested read: Advantages and Disadvantages of Cryptocurrency in 2022
4. Go easy on your credit limit
Credit cards have many benefits, we agree. But when you start exploiting the treat, you will have to go on a strict diet. Last month we did an experiment and found out that spending is doubled or well, dare we say, tripled when you do not have the mental tension to pay for it right away. However, at the end of the month, the bill seems to be more than your account balance. Set a goal, don’t use more than 20 or 30 per cent of your credit score. Avoid having too many credit cards, you’ll end up exhausting the limit of every card for things you don’t really need. Setting up a credit budget will help you answer how to manage money wisely.
suggested read: Top Reasons for Your Child to have Credit Card
5. Treat yourself occasionally
No, we’re absolutely not contradicting ourselves. If you go too hard on yourself, you’ll just have burnout and you will eventually spend even more. Let’s take dieting for example. If you’re just focussing on eating roughage, you’ll eventually want to eat the entire brownie box suddenly one day.
So is the case with savings, don’t forget to include a cheat day in your expense list. Go out, eat whatever you like, shop a little and watch your favourite movie. Set a day in a month, or week where you can pamper yourself a little. How to manage money wisely goes well together with treating yourself every once in a while.
Honestly, managing your money is not really as tricky as you might take it to be. You have to start with small steps to take a huge leap. The mystery of how to spend money wisely is revealed. Summing it up in the shortest way possible- you don’t have to cut down on your necessities, you just have to cut down on the unused items.
So, folks, this was all you needed to know on how to manage money in the best way possible. So if your New Year’s resolution is saving some bucks, we’re certain you’ll be able to have rocking results.
If this helped, we’ll be waiting for our treat. ;)