Managing money isn’t rocket science but rather a basic life skill that anyone needs to have. You don’t need finance and accounting degree, but rather basic addition and subtraction will get the job done. The hard part is in identifying your expenses, choosing or prioritizing the most important ones and then managing your income against it. This requires critical thinking and common sense so here are some easy steps to take.

  1. Have a budget

Having a budget will help you immensely in managing your expenses. Take time off the beginning of the month to sit down and list all your expected expenses for the month so that you can have a clear cut picture as to what you will earn and how much out of it should you spend. Make sure you prioritize the expenses so that you know meeting those expenses is compulsory. If you can’t afford the fancy stuff for the month, leave them out. Once you have the budget in place, it is your sole responsibility to stay within it. Pin it on the wall so that you can always see it and track your expenses. Tick off the bills you have paid and keep on updating the list.

  • Save up for big purchases

You may want that new Volvo you’ve been eyeing, but if you can’t afford it, don’t commit to it right now. Adding up to monthly payments will bring you into debt in no time so save up for it and purchase when you can afford it. Leave the Volvo for now and go for Peanut rent a car in Sydney. Long term renting can be much cheaper than you think so go for it. Likewise, if you have plans for big purchases, hold them off, go for cheaper solutions for the time being and save up. Remember that if you make these purchases on credit, you will be paying interest unnecessarily.

  • Limit unbudgeted spending

Your favourite band could pop up in your town and you’d really like to go; so leave some amount for unbudgeted expenses too. This does not mean you can go crazy with the spending. It should still be within the budget, especially if you don’t have much to spend. Fun and entertainment is also important so do not be too stingy, save everything up and never go out for drinks with your friends or take your girlfriend or boyfriend for a movie. Do have a social life too, but take care of your expenses.


 

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