A Guide to manage your finance efficiently and effectively

Not properly managing your money can take you down the path which you don’t want to take. Unnecessary tensions, stress and poor financial conditions are some of the perks of bad money management. So if you want to avoid any of this extra drama, start managing your hard earned money with more care.

MONEY MANAGEMENT- No wonder it sounds scary. You can even imagine yourself cutting your expenses short, not buying that Oh-God-So-Pretty dress and that too on sale (even if you have already 10000s of them) and not buying all that extra stuff. But now imagine yourself going on that vacation you’ve always wanted, taking that trip, buying that car, graduating college without any heaps of student loans (get pre-approved student loans at Lending Club’s MyInstantOffer ). There… can you feel the difference? That’s what we are talking about. That’s why managing our money is so very important.
So, first things first. Where do we began from?
First, see how much exactly you are earning. Managing money is not just about saving, it’s about literally controlling everything that is happening around your finances. It’s about living your life with a certain mindset. Following steps can generally help your money-saving journey easy peasy lemon squeezey.

See where your money is going

Write down your expenses. All of them. Your house bills, your grocery bills, every cup of coffee you purchase, everything. Once you have noted down all the numbers, organize them into groups like gas, house payment, grocery, outings etc.
By doing this, you will see how even a tiny unnecessary expenditure is costing you a lot of money on monthly basis. Add all these expenditures to see your gross total outflow of cash.

Make your budget

Trust me, it’s not that difficult. Once you have jotted down all your expenditures, making a budget will help you further organize it. You can go old school like using a pen and paper or even getting that budgeting journal or you can download one of those sleek apps to do so.
Then seeing all your expenditures, fix a particular amount for each category.
Be sure to add expense like house/car maintenance that don’t occur frequently and some amount for outings as well.
Now making a budget may not be difficult, but sticking to it and following it with consistency surely is. So, keep your eyes on the prize my friend and with patience we move forward.

Saving Fund

Now, at this point we are done with making a budget. Add a Savings field in your budget and try to save lik3 10-15% of your earning each month. Ideally divide your earnings about expenditure, savings and charity.

Prize

Saving typically is not easy. It needs some motivations and inspiration. S when you are saving, consider why you need to save? Is that for a long-awaited vacation or trip, or is that for your college fund? Make sure you have a purpose for your savings. This will keep you motivated and stop you from making any impulsive decisions
Make short term and long terms goals and try to achieve them. Each milestone you achieve is a big deal.

Pay off those debts

Nobody like pending bank payments or debts lingering on our head. So, make sure to pay any of your pending payments. However small the payment may be, pay if off. And be sure to stay on top of your payments.
Make paying your debts a priority and start paying them regularly.

Go easy

While making budget, don’t make it too strict to follow. Allow for some room to have fun. Spare a little of your money for some entertainment and fun activities. Saving and sticking to budget doesn’t mean that you cut all your activities. It simply means that you live your life in a balanced way. So, go easy on yourself.

Smart Shopping

While shopping look for any discounts, vouchers, offers that you can take advantage of. Shop smartly. Don’t overspend and use your hard earned money wisely.

Credit Limit

Well don’t do Gaga on your credit card. Stay well down the credit card limit. Because the more credit card you use, the more debt you have to pay. So, plan your expenditure accordingly.

Unnecessary Expenses

Seeing your saving fund rise up surely makes you happy but it can also tempt you to make some unnecessary purchases. So, lay low and stay consistent.

Consistency is the key

Whatever you do in life, whatever dream you want to follow, you need to stay consistent and nothing comes easy. So staying on a budget, cutting all the extra stuff, saving will surely make you tired and irritable but think about the bigger picture and then you’ll realize your efforts were worth it.