Wednesday, September 20, 2017

Money Management: How To Do A Lot With A Little

You may have a low salary but that doesn’t mean that financial problems are a foregone conclusion for you. Managing money is about keeping tabs on your earnings and understanding what your limits are in terms of the earnings you have available. Even people with incredibly high salaries can fall into debt through poor money management.

It’s not about the quantity of money you have in your bank account but what you do with it; that’s what determines how stable your financial situation ends up being. If you’re struggling to look after your bank account sensibly then here are some tips on how to do a lot with a little money.

Curb expenditures.

This first step is the most important. If you want to make your money go a long way then you need to work on keeping your spending at a bare minimum. As we’ve said in the past, you need to create barriers for yourself, first of all. You need to resist the urge to make impulse purchases at every possible opportunity and that all starts with a sensible spending plan. You need to make a budget to help get an idea of just how much money you have available. Set aside enough earnings to cover all your monthly necessities before you do anything else; it’s important that you’re not falling short on rent or electricity payments and that you have enough food in your fridge. Focus on the bare necessities. Once you’ve done that, the money you have left over is yours to spend as you wish.

Of course, just because you have money to burn this doesn’t mean you should burn it. If you want some advice as to how you can resist impulse purchases then give yourself the 30-day challenge. If you see something in a store or online that you really want to buy then leave it for 30 days. If you still want it a month later then you can buy it but if you don’t then you probably never really wanted it. It’s a good way to curb bad spending habits.

Dealing with tricky situations.

Of course, you might already have financial problems which make it difficult for you to start being sensible with your spending straight away. You want to get your house in order before you start making drastic changes to your financial lifestyle. Nevertheless, drastic changes might be exactly what you need in order to get your house in order. Start thinking about ways in which you can increase your available money.

If you’re struggling to pay off the money you already owe then you might want to look into sites such as to give you some options in terms of relief and manageable repayments. On top of that, you might want to think about smarter ways in which you can save your money in the first place (so as to pay off your debts more quickly). Creating a more energy efficient household (insulated walls, double-glazed windows, energy-efficient appliances) could reduce your energy bills drastically, for example.

Sell old things.

We’re all guilty of hoarding things over the years but don’t be so quick to throw everything in the trash simply because you’re so desperate to declutter. Next time you clear out the garage, take some advice from; sell on your old and unwanted items for money. eBay, Amazon, and even Facebook Marketplace are all great ways to sell on your old (and sometimes even broken) possessions to a hungry new owner.

Maximizing what you have is a key way to make the most out of every dollar you earn. What are your tips to lessen expenditures? Comment down below.


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