Managing your money can be overwhelming, but it doesn’t have to be. Follow these 3 steps to get started.
1. Track Expenses
You can’t manage your money if you don’t know what you’re spending it on. The best way to start managing your money is to find out where all of your money is going. Track your expenses for an entire month, writing down every dime you spent and what you spent it on. At the end of the month, group your expenses into categories and tally up your totals in each, for example, gas, groceries, rent, eating out, etc.
2. Set Goals
With your monthly totals in hand, look for areas where you can cut back. Wasteful spending could be hiding anywhere, in monthly services you don’t use, extra premium channels you don’t watch, or simply spending $400 eating dinner out, while only spending $100 on groceries. Look for areas with unreasonable spending and set goal amounts you’d like to stick to for the next month. Look for ways to maximize the purchasing power of every dollar.
3. Follow Through
After you’ve set financial goals for the month, make those goals a reality by tracking your spending as you go. Remember to stop spending when you’ve reached your monthly limits.
Managing your money is probably one of the most important skills anyone can master. Follow these tips to gain more peace of mind, and more money in your savings account.