Money Management Tips
We all have encountered times when we felt the pinch of not having enough money to buy what we needed or wanted. We’ve also had our share of situations as well as solutions that helped us squeeze out of that financial crunch. Money management isn’t rocket science when you know the fundamental points to doing it.
Go treasure hunting around the house.
We all have a tendency to store loose bills in so many places. Cabinet drawers are a favorite place for loose bills to get stashed and forgotten, as with old bags, wallets and notebooks or planners. Men should go check on their toolboxes and the glove compartments of their vehicles. Women, the pantry cabinets, or where they store the groceries. These places often hold small bills that come as change from groceries, or gas, or leftover from a particularly cash-rich day. By treasure hunting for all those loose bills, you actually get to consolidate your cash resources; and they will probably amount to a significant figure. Keep in mind that those loose bills have just been lying around and haven’t been put to good use.
Try to get a peg on your non-essential expenses.
Think of something that isn’t essential, but which you spend on out of habit. After work cocktails, or lunch out with your officemates, a regular spa or salon appointment. Should you need to tone down your expenses, the easiest things to forego are the non-essentials. Besides, the cost of indulging in these things tend to build up over time. Of course it doesn’t mean that you have to altogether stop all forms of indulging yourself. The idea is for you to choose which activity you can do less frequently, but more deliberately. Instead of the weekly lunch, a fortnightly dinner at your favorite fine dining place might actually be cheaper for you and may even be more fulfilling as you have more time to enjoy it.
Prepare a maintenance schedule.
Outrageous as it may seem at first, but actually spending for the proper maintenance of your car, or house, or even for your own medical check ups will actually save you money in the long run. A properly lubed suspension system as well as regular tune ups for the engine will ensure that your car doesn’t break down when you least expect it to. Breakdowns often will involve the costly replacements of things that weren’t supposed to be replaced yet. Regularly de-clogging the house drains saves you costly repair bills as well as the stress from having to deal with a repairman that knows how badly your are in need of their services. As well, regular medical check ups may also help to detect potential health concerns in its early stages and therefore cost less with prevention than treatment.
Set aside money for investment.
If you realize that you have a sizeable amount of money that you can put away every month, then try to put it into things that will either hold their value or increase over time. Although banks are a very safe place to keep your money, the value you get for keeping it there may not be too attractive anymore. Consider investing in a trust fund or into blue chip stocks. As an investment instrument, blue chips will generally keep their value and return a reasonable amount of gains over several years. But as with all forms of investment, always keep in mind that a diverse mix is preferred.
So, first consolidate your assets. Then try to put a cap on your expenses. Bonuses from work shouldn’t immediately be spent on vacations or that 40-inch HDTV. Reward yourself deliberately so that you keep your focus on your money management goals. Then invest everything extra so that you can line your nest egg with it in the future.
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