Facing a money crunch every month? It’s possible that your personal finances are not in order. Follow these tips to streamline your finances in an easier way.
When you’re 21 or in your early 20's, and as you start ‘adulting’, you have time on your side but not much money, isn’t it? Good money management habits in your early twenties is crucial but rare among young adults.
This forces us to live from paycheck to paycheck.
One of the primary reasons why most of us face this monthly crunch ordeal is because we do not realize how to manage our finances in a better way.
Infact, financial skills are among the most important life-saving skills every person should acquire.
While we learn various skills from schools and colleges, we do not have the time to discipline ourselves in managing money and our finances.
Managing money is hard, and if you are looking at huge debts, here are five basic financial lessons you need to learn.
These money tricks and tips will help you discipline yourself, manage your money effectively, and master the art of saving money.
Value your money
One of the most important things to do before managing your money is to value and respect your money.
While some people say that money cannot buy you everything, you cannot take that literally into your heart.
You need to respect and value your hard-earned money to use it in the best way possible.
Valuing money will encourage you to manage your money effectively and build a better life.
After all, that's what you are working every day for. Right?
Mind your spending habits
In the world of instant gratification, people spend more money on things they do not necessarily need.
Everything around us, like social media and the internet, is designed to influence us into spending more money.
Therefore, if you want to manage your finances, the first thing you need to do is to build responsible spending habits such as:
- Stop yourself from spending exorbitant amounts of money on frivolous wants and desires.
- Distinguish between your needs and wants and prioritize your spending on needs and fixed expenses before you give into spending all for pleasure.
If you are an impulsive buyer, controlling your desire to buy may not be easier the first time.
However, over time, you will start analyzing your buying habits and become more responsible in spending your money.
If you’ve tried everything under the sun but your frivolous spending knows no bounds, then these tips to curbing your impulsive spending should help.
Budgeting is also one of the smartest things to do to manage finances for unemployed people living on their savings.
Build the habit of making budgets
Budgeting is one of the simplest financial skills to discipline yourself to keep your finances in check.
Making a budget is a good financial habit that you can get into. It will assist you in building a wholesome life around the money you earn and find ways to save it.
It’s kinda tricky to be able to stick to the budget every month, which is acceptable.
However, the intent of creating a budget is to give you a broad understanding of your expenses, monthly needs, money, and how to spend it wisely.
Having a budget also helps save efficiently so that you do not have to resort to any debt traps for any emergency expenses.
When you get into the habit of budgeting it allows you to prioritize spending money on important things instead of things you don't need.
As you continue to stick to the budget you developed, you will start to fine-tune your budget to use the money available to you in a smart way.
Save and grow your money
Saving money is a no-brainer for people who want to discipline themselves and take control of their finances.
You can choose diverse options to save and grow your money, such as bank deposits, share market investments, SIP, and insurance policies.
If you want to save for a trip, or fulfill a near-future financial goal, then it’s best to invest in many short-term savings plans like recurring deposits, mutual funds, SIPs.
However, before choosing to invest or saving your money in any scheme, you need to consider and compare multiple schemes based on various criteria such as:
- ROIs offered by these schemes
- The risk involved with the investments
- Premium or EMI you need to pay
- The maturity period for the investment
- Terms of withdrawing the savings
- Tax benefits that the schemes can offer
You can speak to a financial analyst or advisor to help you make the best investment decision.
But, always remember saving and investing your money requires a strong will as we live in a world where spending is encouraged and fashioned as cool.
Use tools and applications
We live surrounded by technology wherever we go. There is a technological solution for every problem we face, and managing money is no exception.
You can now check out multiple apps that are efficient in helping you organize your money and keep track of your spending.
Businesses develop these apps to make it easier for users to manage and save money.
Hence, they are easy to use as you do not have to be a technology-savvy person to use these applications.
One of the simplest apps which also allow you to save and invest your money is Jar that helps save your money and invest it in digital gold.
In this way, you get to build a healthy habit of saving while you reap the benefits of investing in digital gold and get a step closer to managing your financial goals in life.
Use the Jar app to invest and manage your money without worrying about taking out the time to save daily diligently.
Everyone knows that saving and investing money is essential to not only plan for the future but also ensure money is not spent away into oblivion.
What makes savings such a challenging prospect is the efforts one needs to make the best investment or saving decision.
However, there are intelligent and innovative technology solutions such as the Jar app to help you with it.
The Jar app is a smart financial assistant tool that helps users save money and invest in digital gold.
The app is developed to help you save money daily in smaller quantities and invest the same into digital gold.
The invested money can grow over time as the value of gold appreciates.
Further, the app also brings you effective and proven money tips and tricks from industry experts.
You can save and manage the savings from the comfort of your mobile phone.
To make saving money even sweeter for you, the Jar app also rewards you for saving money.
Happy saving and investing with the Jar app.