How to Manage Money
A lot of people know how to earn money but they don’t know how to spend their money wisely or how to manage money effectively.
As a result, they end up spending all their money and have nothing left in there hand when they really need it. For this, Money Management is really important.
Quick View – Money Management Tips
- What is Money Management?
- Importance of Money Management in Students Life
- How to Manage Money As a Teenager?
- Money Management Tips for College Students
What is Money Management?
Money Management refers to how you handle all aspects of your finance from making a budget for your expenses to picking investments that will help you to reach your financial goals.
Any amount of money can prove to be too little if you don’t have good money management skills. Therefore, Money Management is really important.
Best Tips for Money Management
Many people experience a lot of anxiety when they think about their financial lives, both as they are today and how they may look in the future.
By following the simple Money Management Tips, you may not save for your retirement but can surely save some money for the times of emergency.
Here are some simple & best Tips for Money Management-
- Make a Budget
Planning & Budgeting is very important before making any expenses so why not in your day to day life. Creating a monthly budget for your expenses will help you to decide where to pay and where to save.
- Track your Expenses
Track your expenses, know where most of your income goes will help you to manage your money in a better way.
You can write down the number of expenses you have made in a month and avoid making unnecessary expenses.
Also, Instead of this old copy pen method, you can have a personal expense tracker app to track your expenses with day-to-day data entry and graphical charts presentation of your all expenses
- Set Priorities
It gets difficult for every one of us sometimes to decide what is more important for us at the moment and we make impulsive purchase decisions.
This is the major issue we end up having no savings with us. Setting priorities for purchases is a major part of Money Management.
- Make Investments
Money lying idle in your bank account is an opportunity lost. You should invest that money smartly to get good returns out of it.
There are lots of investment options to choose from like mutual funds, Fixed Deposits, Recurring Deposits, etc. You can choose your investment plan wisely after comparing the pros & cons.
- Expect Emergencies
Life is always unpredictable and we can never think about what can happen next. You can lose your job or can have a medical emergency. So we should always save some amount of money for emergencies.
- Pay the Best Price
Always try to pay the best price for whatever you are purchasing. You can compare prices from different places and brands before making a purchase. You can also look for discounts, coupons, etc to make the best out of your money.
Importance of Money Management in Students Life
College life is all about studying, having fun with your friends, exploring new things and managing everything on your own. For all these things, you need money.
Often it’s the first time many leave the warmth and safety of their parents’ home and have to live and manage on their own.
It gets difficult to make choices between the needs and wants. But Money Management is a skill which is as good as early you develop it.
So, Let’s discuss
How to Spend Money Wisely As a Student?
As a student, you need to deal with a lot of things and stress. In this, sticking to a budget and saving money can be a difficult task, but developing good skills at this stage will not just help you today but for your lifetime.
When talking about Money Management, Students can be categorized as:
- College Students
How to Manage Money As a Teenager?
As a teenager, you have to manage your finance with your parent’s money or pocket money which is not much.
But if you’ll start saving some money from your pocket money, then you can definitely buy stuff later which you really wanted to buy & you’ll develop a wise spending habit at the early stage of your life.
- Separate Spending Money From Savings:
You can simply start your money management by separating a particular amount every month from your expenses. You’ll end up saving a good amount.
- Keep Track of Your Purchases:
Unnecessary purchases can make you left with no money at the end of the month. So you can write down your purchases and think do you really need it.
In this way, you can have control over your purchases.
- Spend Smartly:
Before making a purchase, always think do you really need it. Avoid making impulsive purchases. Always try to find ways to save money from your purchases.
For Example, comparing prices before making a purchase, look for discounts, offers, coupons, etc.
- Get a Summer Job:
Summer jobs are really helpful for teenagers to keep them occupied, learn something new and earn at the same time. This is a very good option for teenagers and students.
For Example, working in a call center to improve your communication skills, managing accounts, doing paid internship courses, etc.
Money Management Tips for College Students
Learning to save in college can lead to a future of good financial decisions, so now is a great time to start.
- Plan a Budget
Making a budget at the beginning of the month and making purchases accordingly is the best way of money management.
You can make a list of your necessary expenses to be made at the beginning of the month and set a limit for the money invested in it. In this way, the remaining amount can be saved.
- Understand Your Needs and Wants
We often find it difficult to understand how to control the purchases. For this, understanding our needs and wants is very important in order to make better purchasing decisions.
For Example, having food in the college mess or going out to eat frequently are some of the choices which help you to understand your needs & wants.
- Pass on Going Out to Eat:
Avoiding going out to eat on weekends can be really helpful in money management. Instead, you can start developing simple cooking habits which will be helpful for you in the long run.
- Keep the Change:
Collecting change in a piggy bank is a small and effective tip to save money.
- Stay in Every Once in a While:
Partying and going out to movies with friends is always fun. But you can stay home once in a while and read some books, spend some quality time with yourself.
You will develop some good reading habits by this and will also save money.
These simple money management tips can help you feel more confident in your financial standing and can help you to save for your future.