Money management is a whole process that if done well, yields positive results. However, if you go wrong in it, then be ready for the harsh consequences. Several people fail to understand the art of managing their own money. Slowly and gradually they lose control of their money.
Therefore, it is significant to take useful steps right when you start earning a single penny. A habit of carefully allocating money to the necessities turns out to be a great step in taking control of your finances. Complete financial freedom lets you own your money in style.
Nonetheless, I believe that people face a lot of difficulty in smoothly managing their finances. So, like a sincere friend, I am going to tell you 5 simple ways of managing your finances like a boss!
Here we go!
1. Create a personal budget
Creating a personal budget needs to top the list. It is the foremost step to pay off the debts and save a few bucks for the future. A budget helps you stay aligned with your financial situation. It is a simple way of bringing peace in life while following a steady lane. It might seem a little tricky at the start. But, trust me, it is going to revamp your financial situation completely. My personal fave is “GoGirl Budget Planner” that you can checkout. If you don’t want to purchase a budget planner, use an excel spreadsheet or any free template online. So, what are you waiting for?
2. Settle any old debt
Debt? Oh No! Well, debt is something that sends shivers down the spine. It’s hard to give your hard-earned money to debt collectors but if you owe it, pay it. If you plan and manage the debts, you will surely overcome. Plus all you’re going to do is spend it, so put it to good use. You’re welcome. Start from scaling down your expenses and allot that portion of the money in paying a debt. Just make sure to create a small but regular payment cycle. One method used by Dave Ramsey (if you don’t know who that is look him up) is called the “Snowball Effect”, it is a process in which you start paying off the smallest debt first and continue making minimum payments towards the others.
3. Curtail unnecessary expenses
I am not asking you to completely stop buying materialistic things. Well actually, I am. Nevertheless, play safe and curtail unnecessary expenses. Hold off on that vacay (nobody wants to fly right now anyway). Start the gym right at your premises. Cook cheeseburger at home and save for your better tomorrow.
4. Utilize a financial app
Nowadays, technology solves 99% of our problems. So, download any useful financial app on your phone and manage your finances on the go! A comprehensive and well-built app would prompt you regularly to take thorough steps in terms of handling your finances. Here are some of the best apps that you download:
• Mint App
• Personal Capital
• Dollar Bird
5. Get a coach
Honestly, a piece of friendly advice is always needed while taking crucial financial decisions. So, someone whom you can trust blindly, help keep you accountable, and who has done the work themselves is so needed. If you need help finding a coach, here I’ll let you borrow mine, Alex Finance NYC. I get in touch with him whenever there is a financial query to solve. He is quick, smart, and gets the job done conveniently. Check him out and tell him I sent you.
Here are some Biblical truths about finances:
Proverbs 22:7 “The rich rules over the poor and the borrower is the slave of the lender”
Debt will oppress and enslave you. Thus, you need to bring balance into your life by avoiding debt as much as you can. The Bible teaches us how to maintain stability in life including in your finances.
Matthew 6:24 No one can serve two masters for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and money.
To be honest, if money comes in between you and God, you need to re-evaluate your lifestyle because NOTHING should get in the way of that relationship.
Again, a balance needs to be created over here which can only be done if you are financially literate. Learn from the Bible, and use the tips I have provided and implement it and start planning your day-to-day financial tasks.
Financial literacy is helpful and abruptly changes the way you think and act.
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