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1
Question
Updated
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How can I become better at managing money?
I need different ways of managing money. I'm trying to start to save up for college but my money management is TERRIBLE.
24 answers
Updated
Doc’s Answer
Lesly it’s absolutely never too early to start saving. Once you decide you want to go to college, start a savings account and begin contributing. Figure out what you can save each paycheck, how much you need, and then establish a goal. Budgeting and savings apps can help by automatically contributing a set amount every month, or even sending digital “spare change” into savings. Figure out what works best for you and begin now.
MONEY MANAGEMENT SAVING TIPS
FOR COLLEGE
COMMUNITY COLLEGES SAVE NOW
The cost of community college credits is, on average, 60 percent cheaper than at four-year public college credits. This has the potential of bring a huge college savings by earning your their first 60 credits at a two-year public school before transferring to an in-state University
OPEN A 529 SAVING ACCOUNT NOW
A 529 savings plan is used to save for higher education. You want one because these accounts are not subject to income taxes, and when you use the funds to pay for qualified education expenses, the withdrawals are typically tax-free as well. When you open a 529, connect it to your checking account. Then set it up so that the amount you aim to save passes automatically from your bank to your 529 each month.
APPLY FOR SCHOLARSHIPS & GRANTS NOW
Scholarships and grants (aka the kind of funding that doesn't need to be repaid) aren't just for incoming first-year students. Your school and even private scholarship-granting organizations often reserve some of their cash for returning students. These may be need- or merit-based and may require an application, essays, and letters of recommendation. Start exploring scholarships and grants you may be eligible for now.
Hope this is helpful Lesly
MONEY MANAGEMENT SAVING TIPS
FOR COLLEGE
COMMUNITY COLLEGES SAVE NOW
The cost of community college credits is, on average, 60 percent cheaper than at four-year public college credits. This has the potential of bring a huge college savings by earning your their first 60 credits at a two-year public school before transferring to an in-state University
OPEN A 529 SAVING ACCOUNT NOW
A 529 savings plan is used to save for higher education. You want one because these accounts are not subject to income taxes, and when you use the funds to pay for qualified education expenses, the withdrawals are typically tax-free as well. When you open a 529, connect it to your checking account. Then set it up so that the amount you aim to save passes automatically from your bank to your 529 each month.
APPLY FOR SCHOLARSHIPS & GRANTS NOW
Scholarships and grants (aka the kind of funding that doesn't need to be repaid) aren't just for incoming first-year students. Your school and even private scholarship-granting organizations often reserve some of their cash for returning students. These may be need- or merit-based and may require an application, essays, and letters of recommendation. Start exploring scholarships and grants you may be eligible for now.
Hope this is helpful Lesly
Updated
Sakthivelan’s Answer
Spend wisely only for the things that you needed; you have to pause a lifestyle expenses.
each and every day you have to track your expenses by note down in any source which is convenience.
ensure create budget for everyday and do not spend more than that so you can manage and keep your money without worry.
each and every day you have to track your expenses by note down in any source which is convenience.
ensure create budget for everyday and do not spend more than that so you can manage and keep your money without worry.
I appreciate this, thank you for the advice.
Lesly
Updated
Jan’s Answer
start to track your incoming money and what your expenses are i.e. use a spread sheet; look where you can cut and what you can save for bigger goals to come during high school or college; only buy what you need
- written on behalf of a group of volunteers at HPE
- written on behalf of a group of volunteers at HPE
Thank you for the advice, Jan.
Lesly
Updated
Traci’s Answer
Hi Lesly! Great question!
I've tried using different money apps on my phone, a simple Excel spreadsheet and even physically writing things down but nothing seemed to be a good fit for me. Until I found GnuCash!
For the past decade now I've been using the free accounting software GnuCash. It's really easy to set up and gives you a lot of options to help you budget and keep track of your money.
When you look at the format of GnuCash it might look super outdated, but it's the simplicity that I appreciated. And the fact that it's free! :)
I hope this helps!
I've tried using different money apps on my phone, a simple Excel spreadsheet and even physically writing things down but nothing seemed to be a good fit for me. Until I found GnuCash!
For the past decade now I've been using the free accounting software GnuCash. It's really easy to set up and gives you a lot of options to help you budget and keep track of your money.
When you look at the format of GnuCash it might look super outdated, but it's the simplicity that I appreciated. And the fact that it's free! :)
I hope this helps!
Thanks for the advice.
Lesly
Updated
Sandra’s Answer
Written by a team of volunteers at HPE
Lesly, it is so exciting that you are thinking of going to college and smart that you recognized that money management is an important first step!
First, you need to create a plan -- write it down to make it "real" and easy to track. Document where you are now and how much you need to save, then set aggressive, timebound goals. Check your progress regularly and refine your plan. You'll be able to see the results of your efforts!
You can educate yourself with a free, quick course in personal financial planning (for example - visit: https://www.edx.org/course/introduction-to-personal-financial-planning for a great, no cost option)
Understand where you are spending your money now and where you can be more efficient. Begin by looking at categories that are discretionary/optional (like your "Fun" category); evaluate if those are right-sized (or too much). Next, understand your expected expenses for college (tuition, room/board, books/supplies, social). You may want to consider lots of different options (universities, community college, on-line studying, living away/living at home). What experience do you want? What can you afford?
Investigate and apply for as many scholarships as you can! There are hundreds to consider: academic, based on affiliations, hobbies, family connections
As you begin to track where you are spending your money each month, use a free app like mint.com to track your personal finances and manage your budget wisely.
Check in weekly on how you are doing against your plan. Be especially careful if you are planning a big weekend to not overspend (service fees and overdrafts are wasted money). Watch your money grow and your college plans come together - good luck!
Lesly, it is so exciting that you are thinking of going to college and smart that you recognized that money management is an important first step!
First, you need to create a plan -- write it down to make it "real" and easy to track. Document where you are now and how much you need to save, then set aggressive, timebound goals. Check your progress regularly and refine your plan. You'll be able to see the results of your efforts!
You can educate yourself with a free, quick course in personal financial planning (for example - visit: https://www.edx.org/course/introduction-to-personal-financial-planning for a great, no cost option)
Understand where you are spending your money now and where you can be more efficient. Begin by looking at categories that are discretionary/optional (like your "Fun" category); evaluate if those are right-sized (or too much). Next, understand your expected expenses for college (tuition, room/board, books/supplies, social). You may want to consider lots of different options (universities, community college, on-line studying, living away/living at home). What experience do you want? What can you afford?
Investigate and apply for as many scholarships as you can! There are hundreds to consider: academic, based on affiliations, hobbies, family connections
As you begin to track where you are spending your money each month, use a free app like mint.com to track your personal finances and manage your budget wisely.
Check in weekly on how you are doing against your plan. Be especially careful if you are planning a big weekend to not overspend (service fees and overdrafts are wasted money). Watch your money grow and your college plans come together - good luck!
Thank you, this is really helpful.
Lesly
Updated
Jazmin’s Answer
Hey Lesly!
Some tips I used to manage my money when I was in school / university were:
1. Document your spending / saving habits over a month or so. Once you figure out what your habits are you'll have a better understanding of what to change and what you're sinking money into.
2. I have separate bank accounts for my long-term savings and my everyday living funds. Keeping things separate meant that I can always check how much my savings had grown. I only have a card for my everyday account, so it also makes it tricker for me to access the long-term savings. (Tip: when you set up a long-term savings account I recommend you shop around at different banks and get a good interest rate. Some banks offer bonuses if you don't take money out of your account!).
3. Set up an automatic transfer of funds to your long-term savings account. I'd forget to do this when I did it manually so having it automatic works well for me.
4. Side hustles or part-time jobs. They might not pay a lot, but even something is better than nothing! You can't save unless you have income.
Hope this helps!
Some tips I used to manage my money when I was in school / university were:
1. Document your spending / saving habits over a month or so. Once you figure out what your habits are you'll have a better understanding of what to change and what you're sinking money into.
2. I have separate bank accounts for my long-term savings and my everyday living funds. Keeping things separate meant that I can always check how much my savings had grown. I only have a card for my everyday account, so it also makes it tricker for me to access the long-term savings. (Tip: when you set up a long-term savings account I recommend you shop around at different banks and get a good interest rate. Some banks offer bonuses if you don't take money out of your account!).
3. Set up an automatic transfer of funds to your long-term savings account. I'd forget to do this when I did it manually so having it automatic works well for me.
4. Side hustles or part-time jobs. They might not pay a lot, but even something is better than nothing! You can't save unless you have income.
Hope this helps!
Thanks for the advice.
Lesly
Updated
JOHN’s Answer
Hello:
Any money management, personally or professionally, foundationally comes to the focus and desire to do so. Plans can be amazing, and proactive thoughts as the other commenters gifted, but you have to find the money spend/money saved balance that welcomes you to do things within the current times while saving for the tomorrow.
Save a percentage of the week/month and tell yourself - this will never be used outside urgent situations.
Sacrifices are a part of saving, as that will guide your future, though always remember to live within the nows; obviously, based on how much sacrificing you want to do within the current and times coming up.
The want to do what you are, showcases a tremendous steppingstone towards a wondrous life.
Thankful to your path.
God Bless,
John German
Any money management, personally or professionally, foundationally comes to the focus and desire to do so. Plans can be amazing, and proactive thoughts as the other commenters gifted, but you have to find the money spend/money saved balance that welcomes you to do things within the current times while saving for the tomorrow.
Save a percentage of the week/month and tell yourself - this will never be used outside urgent situations.
Sacrifices are a part of saving, as that will guide your future, though always remember to live within the nows; obviously, based on how much sacrificing you want to do within the current and times coming up.
The want to do what you are, showcases a tremendous steppingstone towards a wondrous life.
Thankful to your path.
God Bless,
John German
Updated
Scott’s Answer
Hi, Lesly! As someone who's passionate about personal finance and money management, I'm excited to offer some friendly and encouraging advice to help you get better at managing your money.
Managing your finances can be a challenge, especially when you're just starting out. But don't worry, there are plenty of simple steps you can take to get on track. One of the best things you can do is to create a budget that helps you keep track of your income and expenses. Start by making a list of all your income sources, like your job or any other income you may receive. Then, list your expenses, including rent, bills, groceries, and other necessities. This will help you get a better understanding of where your money is going and where you can cut back on spending.
Another important step is to set financial goals for yourself. Whether you're saving up for college or a down payment on a house, having a specific goal in mind can help you stay motivated and focused. And don't forget to celebrate the small milestones along the way, like saving a certain amount each month or reducing your expenses by a certain amount.
In addition to these tips, there are also some great books on personal finance and money management that can help you improve your skills. One book I recommend is "The Total Money Makeover" by Dave Ramsey. It offers practical advice on budgeting, saving, investing, and building wealth, as well as tips for getting out of debt and staying motivated. Another great book is "I Will Teach You to Be Rich" by Ramit Sethi, which provides a no-nonsense approach to managing your money and building financial security.
Remember, managing your money is a journey, and it's important to be patient with yourself as you learn and grow. Keep working towards your goals, and don't let setbacks or negative comments from others discourage you. You've got this, Lesly!
Managing your finances can be a challenge, especially when you're just starting out. But don't worry, there are plenty of simple steps you can take to get on track. One of the best things you can do is to create a budget that helps you keep track of your income and expenses. Start by making a list of all your income sources, like your job or any other income you may receive. Then, list your expenses, including rent, bills, groceries, and other necessities. This will help you get a better understanding of where your money is going and where you can cut back on spending.
Another important step is to set financial goals for yourself. Whether you're saving up for college or a down payment on a house, having a specific goal in mind can help you stay motivated and focused. And don't forget to celebrate the small milestones along the way, like saving a certain amount each month or reducing your expenses by a certain amount.
In addition to these tips, there are also some great books on personal finance and money management that can help you improve your skills. One book I recommend is "The Total Money Makeover" by Dave Ramsey. It offers practical advice on budgeting, saving, investing, and building wealth, as well as tips for getting out of debt and staying motivated. Another great book is "I Will Teach You to Be Rich" by Ramit Sethi, which provides a no-nonsense approach to managing your money and building financial security.
Remember, managing your money is a journey, and it's important to be patient with yourself as you learn and grow. Keep working towards your goals, and don't let setbacks or negative comments from others discourage you. You've got this, Lesly!
Updated
Greg’s Answer
Dear Lesly,
Create a budget and stick to it! If you need assistance with this, consider searching for a budget template on Google. Various "Finance gurus" publish not only templates but also conservative guidance on financial spending and saving that might be beneficial to you.
Make sure your income is more than your expenses.
Regarding saving for college in particular, look for alternative sources to fund your expenses, such as scholarships and aid. Depending on where you are in your education and how far away you from attending college, you might be able to apply for one or more scholarships that could significantly offset your own costs. Get to know their metrics for awarding scholarships and do you best to meet or exceed them.
Consider doing general coursework at a community college where tuition and overall expenses might be less than the institution you want to get your degree from.
All the best!
written on behalf of a group of volunteers at HPE
Create a budget and stick to it! If you need assistance with this, consider searching for a budget template on Google. Various "Finance gurus" publish not only templates but also conservative guidance on financial spending and saving that might be beneficial to you.
Make sure your income is more than your expenses.
Regarding saving for college in particular, look for alternative sources to fund your expenses, such as scholarships and aid. Depending on where you are in your education and how far away you from attending college, you might be able to apply for one or more scholarships that could significantly offset your own costs. Get to know their metrics for awarding scholarships and do you best to meet or exceed them.
Consider doing general coursework at a community college where tuition and overall expenses might be less than the institution you want to get your degree from.
All the best!
written on behalf of a group of volunteers at HPE
Updated
Yogesh’s Answer
7 S For Healthy Finance
1) Self Disciplined - Make Savings habit - “Do not save what is left after spending, but spend what is left after savings”.
2) Systematic - Save periodically (Weekly, Monthly or Quarterly), no matter if its small. It’s always better to save periodically rather than planning
to save later and in a lump sum. It will give less burden and also help to maintain the discipline
3) Start Early - Early birds get the worms. Early you start, you reach to your goal early. Power of Compounding helps to generate bigger corpus
4) Save For Emergency - Emergencies like Job loss, no earnings during accidents / illness or illness in family can cause huge financial losses.
Most debts traps happens due to emergencies, which force to liquidate your savings or Sell your assets or even end up
in taking some expensive loans. Its always recommended to have 6 To 8 months of expenses as Emergency fund.
5) Stay Away From Debts - One should always avoid expensive debts like Personal loan or Credit card over dues, these are most expensive loans
and can eat all of your earnings. Such loans can temps one to buy things like expensive gadgets or going for tours.
Such things (expensive gadgets or going for tours) should be planned by saving more rather than taking a loan.
6) Secured from unplanned Events - By having adequate Insurance one can ensure to secure current life style for their loved once . There are
insurance products which can help to take care of unexpected events such as Critical illness, Disability and
many other unplanned events.
7) Save & Spend Wisely - One should control the emotions like greed, being impatient and fear while saving, these can causes huge losses to the
savings. “Do not buy the things which you don’t need, else you have to sell the things which you need”.
1) Self Disciplined - Make Savings habit - “Do not save what is left after spending, but spend what is left after savings”.
2) Systematic - Save periodically (Weekly, Monthly or Quarterly), no matter if its small. It’s always better to save periodically rather than planning
to save later and in a lump sum. It will give less burden and also help to maintain the discipline
3) Start Early - Early birds get the worms. Early you start, you reach to your goal early. Power of Compounding helps to generate bigger corpus
4) Save For Emergency - Emergencies like Job loss, no earnings during accidents / illness or illness in family can cause huge financial losses.
Most debts traps happens due to emergencies, which force to liquidate your savings or Sell your assets or even end up
in taking some expensive loans. Its always recommended to have 6 To 8 months of expenses as Emergency fund.
5) Stay Away From Debts - One should always avoid expensive debts like Personal loan or Credit card over dues, these are most expensive loans
and can eat all of your earnings. Such loans can temps one to buy things like expensive gadgets or going for tours.
Such things (expensive gadgets or going for tours) should be planned by saving more rather than taking a loan.
6) Secured from unplanned Events - By having adequate Insurance one can ensure to secure current life style for their loved once . There are
insurance products which can help to take care of unexpected events such as Critical illness, Disability and
many other unplanned events.
7) Save & Spend Wisely - One should control the emotions like greed, being impatient and fear while saving, these can causes huge losses to the
savings. “Do not buy the things which you don’t need, else you have to sell the things which you need”.
Thank you, Yogesh!
Lesly
Updated
Sundar’s Answer
Create a budget: Making a budget is the first and the most important step of money management.
Save first, spend later.
Set financial goals.
Start investing early.
Avoid debt.
Ensure protection against emergencies.
Save first, spend later.
Set financial goals.
Start investing early.
Avoid debt.
Ensure protection against emergencies.
Updated
Atul’s Answer
It is very simple.
Define need vs want.
Avoid want until you have a balance to pay for the tuition.
Define need vs want.
Avoid want until you have a balance to pay for the tuition.
Updated
Peter’s Answer
Start saving for retirement early, with time on your side. Budget is key., Live within your mean To increase money either spend less or save more. Record your expenses and compare to your income: divide into categories, meals, necessary, health insurance or medical needs, luxury, needs and wants. Educate yourself on different investments. Don't forget to pay yourself, you have earned it. Automatic savings deposit, Search for budgeting method 50/20/30. Compound interest can work for you with savings and against you with debt. Look at multiple banks for the best interest rates or bonuses, and incentives.
Written on behalf of a group of volunteers at HPE.
Written on behalf of a group of volunteers at HPE.
Updated
Trevor’s Answer
Lots of great advice on here! I'd also add that there are a ton of great resources online for free you can leverage as well!
Here is one I found from Capital One: https://www.capitalone.com/learn-grow/money-management/money-management-tips/
Here is one I found from Capital One: https://www.capitalone.com/learn-grow/money-management/money-management-tips/
Updated
Ezekiel’s Answer
Go over your monthly spending and prioritize items for short and long term. Good to have items can be avoided and the money can be used otherwise for investment or other more worthwhile objectives, such as housing etc.
Take note of your incoming versus expenses to visualize how you are doing. Most of the time, especially when using Credit cards you do not even realize the amount you are really spending until you receive the monthly statements. Split and prioritize big expenses into different periods.
Managing money is always a challenge, because we should have training in managing money since we were little when we received the allowance. The important thing that we would recommend first is to analyze your relationship with money, analyze how much your weekly expenses are, if your income is sufficient, if you are spending more on something. And something that we also recommend is to have short-term goals to make your savings easier.
Open a bank account, preferably a credit union, that enables you to see your transactions on the bank app. Be consistent about putting money into your bank account (if you are working) from every paycheck. Consider a savings account, as well, that allows you to put money aside for “fun” things like gifts for friends/family, going our with friends, hobbies, etc.
--- Written on behalf of a group of volunteers at HPE
Take note of your incoming versus expenses to visualize how you are doing. Most of the time, especially when using Credit cards you do not even realize the amount you are really spending until you receive the monthly statements. Split and prioritize big expenses into different periods.
Managing money is always a challenge, because we should have training in managing money since we were little when we received the allowance. The important thing that we would recommend first is to analyze your relationship with money, analyze how much your weekly expenses are, if your income is sufficient, if you are spending more on something. And something that we also recommend is to have short-term goals to make your savings easier.
Open a bank account, preferably a credit union, that enables you to see your transactions on the bank app. Be consistent about putting money into your bank account (if you are working) from every paycheck. Consider a savings account, as well, that allows you to put money aside for “fun” things like gifts for friends/family, going our with friends, hobbies, etc.
--- Written on behalf of a group of volunteers at HPE
Updated
shantell’s Answer
write out a list on what you have or need to be paid , then calculate what you spend it would make it easier because you would be able to manage the things you spend.
Updated
Keizo’s Answer
Hey Lesly,
Everyone is different but alot of the same variables seem to be introduced through life in categories such as wants, needs, and should. One of the best things I think you can do is to begin organizing all of your spending in a way thats easy for you to understand. Sometimes, people allow for a bad habit to take place which is to not keep track of spending, and even transactions in general. I would keep note of all your financial obligations and literally write it out so you develop a sense of financial literacy. Ask around, see how many people in your personal or professional life have advice, see what is out there at libraries or book stores to learn about financial plans, long term and short term and see how it can ultimately benefit you and your life. Keeping spending in categories or beginning to think in percentages might help as well! For example, keeping necessities to 50% of spending might help alot, this might include rent, food, and transportation. Ultimately, see what works best for you in order to achieve your goals.
Everyone is different but alot of the same variables seem to be introduced through life in categories such as wants, needs, and should. One of the best things I think you can do is to begin organizing all of your spending in a way thats easy for you to understand. Sometimes, people allow for a bad habit to take place which is to not keep track of spending, and even transactions in general. I would keep note of all your financial obligations and literally write it out so you develop a sense of financial literacy. Ask around, see how many people in your personal or professional life have advice, see what is out there at libraries or book stores to learn about financial plans, long term and short term and see how it can ultimately benefit you and your life. Keeping spending in categories or beginning to think in percentages might help as well! For example, keeping necessities to 50% of spending might help alot, this might include rent, food, and transportation. Ultimately, see what works best for you in order to achieve your goals.
Updated
Harshitha’s Answer
Use cash as much as possible and track expenses. What cannot be measured cannot be managed.
Use public library and used books - read good books on personal finance and follow the advice(Psychology of money, Rich dad Poor dad etc.,)
Save first spend later
Use public transport
Look for better use of time, value of time >>> value of money
Cut down on needless expenses - explore minimalism, less is more - less clothes, less bags, less shoes, less social media time => less choices to make = more time for self improvement
Set limits for each category of spend - use an app if needed
Track if limits are breached - reward yourself if you expenses are within limit, review expenses where limits are breached, make the limits realistic
Have a target to save small amount every month - look for ways to make money, content creation, part time jobs that help in skill building
Start investing in yourself
Use public library and used books - read good books on personal finance and follow the advice(Psychology of money, Rich dad Poor dad etc.,)
Save first spend later
Use public transport
Look for better use of time, value of time >>> value of money
Cut down on needless expenses - explore minimalism, less is more - less clothes, less bags, less shoes, less social media time => less choices to make = more time for self improvement
Harshitha recommends the following next steps:
Updated
Gus’s Answer
Great question - it is an important skill that will not only help you save for college, but it will also be useful in your career. The tip that I suggest is tracking expenses. There are banking apps or other providers that do this for you, or you can do a bit more manual approach in excel. Tracking expenses will allow you to see what you are spending, categorize it (eg. food, entertainment, rent, etc.) to help you make better decisions.
Once you start tracking your expenses, you can then set goals for yourself. Example: I want to save $200 per month. If you know what your spending trends are each month, take action to make room for that saved $200 - skip going out to dinner for a few meals, try taking public transportation, etc. Hopefully these brief steps will help you get on the right track for money management.
Once you start tracking your expenses, you can then set goals for yourself. Example: I want to save $200 per month. If you know what your spending trends are each month, take action to make room for that saved $200 - skip going out to dinner for a few meals, try taking public transportation, etc. Hopefully these brief steps will help you get on the right track for money management.
Thank you for the advice.
Lesly
Updated
anahi’s Answer
Becoming better at managing money is a valuable skill that can lead to financial stability and long-term success. Here are some practical tips to help you improve your money management skills:
### **1. Create a Budget:**
- Develop a detailed budget that outlines your income, fixed expenses (rent, utilities), variable expenses (groceries, entertainment), savings, and debt payments. This provides a clear picture of your financial situation.
### **2. Track Your Spending:**
- Monitor your spending regularly. Keep track of every expense to identify areas where you can cut back and save more.
### **3. Build an Emergency Fund:**
- Establish an emergency fund to cover unexpected expenses. Aim for at least three to six months' worth of living expenses in savings.
### **4. Prioritize Saving:**
- Make saving a priority. Set specific savings goals for short-term needs (e.g., vacations) and long-term goals (e.g., retirement).
### **5. Pay Yourself First:**
- Allocate a portion of your income to savings as soon as you get paid. This ensures that saving becomes a non-negotiable part of your financial routine.
### **6. Avoid High-Interest Debt:**
- Minimize the use of high-interest debt, such as credit cards. If you have outstanding debt, focus on paying it off to reduce interest payments.
### **7. Live Below Your Means:**
- Avoid lifestyle inflation. As your income increases, resist the urge to immediately increase your spending. Instead, prioritize saving and debt repayment.
### **8. Negotiate Bills and Expenses:**
- Negotiate bills and expenses where possible. This can include negotiating utility bills, exploring discounts, or refinancing loans to lower interest rates.
### **9. Use Financial Apps:**
- Consider using budgeting apps to track your spending, set financial goals, and receive alerts for upcoming bills.
### **10. Invest Wisely:**
- Learn about different investment options and consider investing for long-term goals. Diversify your investments to manage risk.
### **11. Review and Adjust:**
- Regularly review your budget and financial goals. Adjust as needed based on changes in your income, expenses, or financial priorities.
### **12. Educate Yourself:**
- Continuously educate yourself about personal finance. There are plenty of resources, books, and online courses that can enhance your financial literacy.
### **13. Plan for Retirement:**
- Start saving for retirement early. Contribute to employer-sponsored retirement plans like 401(k)s, especially if your employer offers a matching contribution.
### **14. Avoid Impulse Purchases:**
- Practice mindful spending. Avoid impulse purchases and give yourself time to consider whether a purchase is a need or a want.
**15. Seek Professional Advice:**
- Consider consulting with a financial advisor to get personalized advice based on your unique financial situation and goals.
Remember, improving money management skills is a gradual process. Start with small, achievable steps and build on your successes over time. Consistency and a commitment to financial responsibility are key to long-term success.
### **1. Create a Budget:**
- Develop a detailed budget that outlines your income, fixed expenses (rent, utilities), variable expenses (groceries, entertainment), savings, and debt payments. This provides a clear picture of your financial situation.
### **2. Track Your Spending:**
- Monitor your spending regularly. Keep track of every expense to identify areas where you can cut back and save more.
### **3. Build an Emergency Fund:**
- Establish an emergency fund to cover unexpected expenses. Aim for at least three to six months' worth of living expenses in savings.
### **4. Prioritize Saving:**
- Make saving a priority. Set specific savings goals for short-term needs (e.g., vacations) and long-term goals (e.g., retirement).
### **5. Pay Yourself First:**
- Allocate a portion of your income to savings as soon as you get paid. This ensures that saving becomes a non-negotiable part of your financial routine.
### **6. Avoid High-Interest Debt:**
- Minimize the use of high-interest debt, such as credit cards. If you have outstanding debt, focus on paying it off to reduce interest payments.
### **7. Live Below Your Means:**
- Avoid lifestyle inflation. As your income increases, resist the urge to immediately increase your spending. Instead, prioritize saving and debt repayment.
### **8. Negotiate Bills and Expenses:**
- Negotiate bills and expenses where possible. This can include negotiating utility bills, exploring discounts, or refinancing loans to lower interest rates.
### **9. Use Financial Apps:**
- Consider using budgeting apps to track your spending, set financial goals, and receive alerts for upcoming bills.
### **10. Invest Wisely:**
- Learn about different investment options and consider investing for long-term goals. Diversify your investments to manage risk.
### **11. Review and Adjust:**
- Regularly review your budget and financial goals. Adjust as needed based on changes in your income, expenses, or financial priorities.
### **12. Educate Yourself:**
- Continuously educate yourself about personal finance. There are plenty of resources, books, and online courses that can enhance your financial literacy.
### **13. Plan for Retirement:**
- Start saving for retirement early. Contribute to employer-sponsored retirement plans like 401(k)s, especially if your employer offers a matching contribution.
### **14. Avoid Impulse Purchases:**
- Practice mindful spending. Avoid impulse purchases and give yourself time to consider whether a purchase is a need or a want.
**15. Seek Professional Advice:**
- Consider consulting with a financial advisor to get personalized advice based on your unique financial situation and goals.
Remember, improving money management skills is a gradual process. Start with small, achievable steps and build on your successes over time. Consistency and a commitment to financial responsibility are key to long-term success.
Updated
Sarah’s Answer
I like to remind myself "pay yourself first" when it comes to managing money and creating budgets. This can mean different things to different people, and for myself when I have a goal in mind, I will base it off of the desired end result. For example, if I wished to purchase a car, I would estimate what my car payment and insurance would be, and allocate that as my savings each month for a period of time (let's say 6 months). For me, this is a great method because I am able to gauge how the payment fits into my budget while also saving up for the big purchase.
Thank you, this is really helpful.
Lesly
Updated
Daniel’s Answer
Lesly,
The very first thing I would do is make yourself a monthly budget. There are many good apps/online tools you can find online. Many online tools can help you categorize certain expenses and they usually have graphics that can help you visualize your progress. You can also do it the old fashioned way on Excel.
After you set up a budget the next best thing you can do is sleep on it and really ask yourself if you need the item. I would encourage you to really think through what you will use the item for and for how long. Also, think about the big items in life you need to save for such as a house, possibly kids, retirement, etc. You are never to young to start saving for these big ticket purchases in life.
The last thing I would do is don't compare yourself to others. One of the most dangerous things is comparing yourself to people and thinking if they can have it so should I. Don't fall for that trap of "keeping up with the joneses" because comparing yourself to people and their things is not a good idea. It will only lead to misery and feeling like you are failure.
Hope some of the above provides insight.
The very first thing I would do is make yourself a monthly budget. There are many good apps/online tools you can find online. Many online tools can help you categorize certain expenses and they usually have graphics that can help you visualize your progress. You can also do it the old fashioned way on Excel.
After you set up a budget the next best thing you can do is sleep on it and really ask yourself if you need the item. I would encourage you to really think through what you will use the item for and for how long. Also, think about the big items in life you need to save for such as a house, possibly kids, retirement, etc. You are never to young to start saving for these big ticket purchases in life.
The last thing I would do is don't compare yourself to others. One of the most dangerous things is comparing yourself to people and thinking if they can have it so should I. Don't fall for that trap of "keeping up with the joneses" because comparing yourself to people and their things is not a good idea. It will only lead to misery and feeling like you are failure.
Hope some of the above provides insight.
Updated
Anand’s Answer
I am not sure how old you are and if you are working.
If I were working, I would save as much as possible, look at a "state" or community college and understand where you can qualify and get some scholarships to support your education
- be disciplined about saving .. hope this helps
If I were working, I would save as much as possible, look at a "state" or community college and understand where you can qualify and get some scholarships to support your education
- be disciplined about saving .. hope this helps
Thank you for the advice, Anand.
Lesly
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
6342
Answers
Updated
James Constantine’s Answer
Dear Lesly,
Ever thought about marrying a penny-pincher?
Transforming your financial habits can indeed be a daunting endeavor. However, armed with the right techniques and a positive attitude, you can conquer this challenge! Here are some practical methods to enhance your money management prowess:
Monitor your outgoings: The initial step towards effective money management is keeping a close eye on your expenses. This will allow you to spot areas where you can trim down unnecessary expenditure and channel your funds towards more crucial aspects like savings and investments. You can use a simple notebook, a spreadsheet, or a budgeting app to record your expenses.
Establish a budget: Having a clear understanding of your income and expenses enables you to formulate a budget that suits your needs. A budget assists you in distributing your money into different categories such as rent, utilities, groceries, transportation, entertainment, and savings. Remember to set achievable goals and prioritize your necessities over your desires.
Distinguish between needs and wants: Recognizing the difference between your needs and wants is crucial in money management. Needs are vital items like rent, groceries, and transportation, whereas wants are non-essential items like dining out or entertainment. Prioritize your needs over your wants to ensure that you always have enough funds for the essentials.
Reserve funds for emergencies: Life is full of surprises, and unexpected costs can crop up at any time. It's vital to have an emergency fund to cover unforeseen expenses like medical bills, car repairs, or job loss. Strive to save an amount equivalent to 3-6 months' worth of living expenses in a readily accessible savings account.
Invest prudently: Investing your money can make it multiply over time, but it's crucial to do it wisely. Explore various investment options like stocks, bonds, and mutual funds to find the one that aligns best with your risk tolerance and financial objectives. Consider seeking advice from a financial advisor to help you make well-informed investment decisions.
Steer clear of debt: Debt can rapidly become overwhelming and impede your ability to manage your money effectively. Refrain from incurring unnecessary debts like credit card debt or personal loans, and concentrate on clearing any existing debt as swiftly as possible.
Be aware of your spending habits: Stay alert to your spending habits and resist impulsive buying. Question yourself if the item you're about to purchase is essential and if it fits within your budget. Try to utilize what you already have and refrain from buying items merely because they're discounted.
Define financial goals: Setting financial goals will keep you inspired and focused on your journey to better money management. Establish short-term and long-term goals, such as saving for a specific purchase or retirement, and strive to achieve them.
Keep learning: Constantly enrich your knowledge on personal finance and money management. Delve into books, articles, and blogs to discover new methods and strategies for managing your money.
Consult a professional: If you find money management overwhelming, consider reaching out to a financial advisor or credit counselor. They can offer tailored advice and assist you in devising a plan to reach your financial objectives.
In conclusion, improving your money management skills demands discipline, patience, and the right strategies. By monitoring your expenses, establishing a budget, prioritizing your needs over your wants, and investing wisely, you can enhance your financial well-being and achieve your financial goals.
Recommended Reading:
“The Total Money Makeover” by Dave Ramsey
“Your Money or Your Life” by Vicki Robin and Joe Dominguez
“The Simple Path to Wealth” by JL Collins
These books provide comprehensive advice on managing your money effectively and achieving financial independence. They offer practical tips and strategies that can help you enhance your financial health and reach your financial goals.
May you be blessed with abundance,
James Constantine Frangos.
Ever thought about marrying a penny-pincher?
Transforming your financial habits can indeed be a daunting endeavor. However, armed with the right techniques and a positive attitude, you can conquer this challenge! Here are some practical methods to enhance your money management prowess:
Monitor your outgoings: The initial step towards effective money management is keeping a close eye on your expenses. This will allow you to spot areas where you can trim down unnecessary expenditure and channel your funds towards more crucial aspects like savings and investments. You can use a simple notebook, a spreadsheet, or a budgeting app to record your expenses.
Establish a budget: Having a clear understanding of your income and expenses enables you to formulate a budget that suits your needs. A budget assists you in distributing your money into different categories such as rent, utilities, groceries, transportation, entertainment, and savings. Remember to set achievable goals and prioritize your necessities over your desires.
Distinguish between needs and wants: Recognizing the difference between your needs and wants is crucial in money management. Needs are vital items like rent, groceries, and transportation, whereas wants are non-essential items like dining out or entertainment. Prioritize your needs over your wants to ensure that you always have enough funds for the essentials.
Reserve funds for emergencies: Life is full of surprises, and unexpected costs can crop up at any time. It's vital to have an emergency fund to cover unforeseen expenses like medical bills, car repairs, or job loss. Strive to save an amount equivalent to 3-6 months' worth of living expenses in a readily accessible savings account.
Invest prudently: Investing your money can make it multiply over time, but it's crucial to do it wisely. Explore various investment options like stocks, bonds, and mutual funds to find the one that aligns best with your risk tolerance and financial objectives. Consider seeking advice from a financial advisor to help you make well-informed investment decisions.
Steer clear of debt: Debt can rapidly become overwhelming and impede your ability to manage your money effectively. Refrain from incurring unnecessary debts like credit card debt or personal loans, and concentrate on clearing any existing debt as swiftly as possible.
Be aware of your spending habits: Stay alert to your spending habits and resist impulsive buying. Question yourself if the item you're about to purchase is essential and if it fits within your budget. Try to utilize what you already have and refrain from buying items merely because they're discounted.
Define financial goals: Setting financial goals will keep you inspired and focused on your journey to better money management. Establish short-term and long-term goals, such as saving for a specific purchase or retirement, and strive to achieve them.
Keep learning: Constantly enrich your knowledge on personal finance and money management. Delve into books, articles, and blogs to discover new methods and strategies for managing your money.
Consult a professional: If you find money management overwhelming, consider reaching out to a financial advisor or credit counselor. They can offer tailored advice and assist you in devising a plan to reach your financial objectives.
In conclusion, improving your money management skills demands discipline, patience, and the right strategies. By monitoring your expenses, establishing a budget, prioritizing your needs over your wants, and investing wisely, you can enhance your financial well-being and achieve your financial goals.
Recommended Reading:
“The Total Money Makeover” by Dave Ramsey
“Your Money or Your Life” by Vicki Robin and Joe Dominguez
“The Simple Path to Wealth” by JL Collins
These books provide comprehensive advice on managing your money effectively and achieving financial independence. They offer practical tips and strategies that can help you enhance your financial health and reach your financial goals.
May you be blessed with abundance,
James Constantine Frangos.
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