Managing your money is simple but as we all know, it isn’t easy and it isn’t something we get taught about at school. Managing your money is just like starting a new fitness program or diet, it takes discipline, self-control and a gentle nudge.
Everyone deals with their money differently, but here are 3 simple (not easy) ways to managing your money.
Credit cards can be a great tool, if you use it for the right reasons, and make your repayments on time each month. Unfortunately for most people, this isn’t the case and they use it for the wrong reasons and have credit card debts on a number of cards. If this is your case, then you will need to work hard to pay off the debt ASAP, even small amounts each week can help to clear your debts sooner.
Set up an emergency account or fund.
An emergency account is a great way to ensure you have some extra money. To cover those unlikely emergencies when, in the week your other bills are now due, and:
- You need new tyres or repairs to your car or
- The fridge needs replacing
- Unexpected dentist/doctors bill or
- You are injured and can’t work for a few weeks.
Start by trying to save approximately $1,000 and slowly build it up to at least 1 – 3 months’ salary. This will make it a bit more comfortable when the unexpected happens. You will have some money available.
Pay attention to your Money
Money is important, sure it can be awkward, uncomfortable and frustrating to talk about. But, at some point money is going to control where you live, what you eat and where you choose to go for a holiday. So pay attention to how you spend your money, write down the things you spend your money on each week or month and you may start to notice a few interesting things. Learn how to control your money and Don’t let you money control you.
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