Finances can be an issue that plagues us for our entire lives. From the day we’re born to the day we pass away, money will always be on our minds. However, gaining financial freedom and learning the skills to properly manage your money is possible. It just takes a lot of patience, some trial and error, and of course, some failures. If you want to learn how to go from rags to riches the easy way, then here are some top tips that will set you on the right path.
Don’t be afraid to fail
Failure can be many different things. Failure can mean that you used your emergency fund when it wasn’t an emergency. Failure could also mean “forgetting” to deposit savings into your bank and, instead, using it to buy new shoes. These things happen, but it’s important not to beat yourself up about it and focus on improving yourself. After all, how can you improve if you don’t fail first?
You need to give yourself a reason to discipline yourself. Perhaps you’re in a rough situation where you aren’t getting much work and you have to provide for your children. Maybe the idea of having your belongings repossessed makes you upset or perhaps you just hate the idea of being in the negative. Use these undesirable situations as a way to discipline yourself so that you keep making those payments into your emergency fund.
There’s help out there
Whether you’re spending too much money because you have a fairly decent job or you’re struggling to make this month’s rent payments, there is help out there. It could come in the form of wealth management such as Partridge Muir & Warren, it could come in the form of welfare payments, or you could get help by calling a friend and asking for a favour. Whatever your current situation, just remember that there is help out there if you need it.
Set a budget
All good money management starts with a budget. You could use budgeting software, but that can take a while to get used to because you have to manually calculate how much you spend, what you’re spending on, and so forth. The easier way to budget is to just wing it. You don’t need to calculate every single penny that comes in and out, but you should have a good understanding of how much money you can actually spend per paycheck. Start by calculating all your income, then subtract the amount you spend on necessary things such as utility bills and groceries. The money you have left over can then be spent on whatever you’d like.
Don’t forget to spend
It seems strange suggesting that you spend money if you want to save it, but there’s a difference between being cheap and being frugal. Being frugal means you’re more willing to spend extra money in order to get a better deal, such as buying food that’s more filling or a tech item that lasts longer. Make sure that you aren’t neglecting this because you could make some huge savings by investing in longer-lasting solutions instead of always relying on cheap items.