Handling finances are something a lot of people don’t do properly, and that is why financial worries and fears often occupy our thoughts. To avoid this, you have to educate yourself and learn how to manage your money properly, this isn’t easy at all, in fact with all those amazing products and things tempting you to spend your money, it is almost impossible. The temptation is the first and the hardest obstacle to overcome, but in the end, it will pay off, you just have to be smart. Here are some tips that might help you become the financially responsible person and get rid of everyday financial worries before they eat you alive.
Economic Calendar is something everyone should create, especially if you’re a distracted person. Everyone often forgets about their responsibilities such as doctors appointment, a date and so on; however, the financial calendar can help you stay in touch with your responsibilities never forgetting them. This is crucial especially if your responsibilities are financial. The more you delay paying them, the more you will pay in the end. That is why everyone needs a calendar with the appointment reminder for each bill you have to pay and each event that requires spending money.
Personal Finance Book
Aside from calendar, each responsible person needs a Personal Finance book, it can be just a simple notebook, the important thing is that you write down everything – the income, the expenses in the exact amounts and if necessary even the date when it happened. If you do this, you will know exactly where your money goes, and you will be able to manage your money the more suitable way.
Set up budget in advance
If you paycheck is always in fixed amounts, you know how much you will earn each month, using this and personal finance book you will know how much money you can allocate for spending and the rest can go to the savings account, emergency or retirement fund. To be sure you won’t spend more than you anticipated use cash only. Credit cards are contagious if you see something you like, but don’t need it, you will probably buy it; however, using money will allow you buy only the most necessary things.
Financial priorities are the priorities.
At least 20% or your monthly income should go to your financial priorities, even though it seems a lot, it isn’t and if your priorities are less than this you can easily save money for something else. If you aren’t certain what are those financial priorities, those are your bills, debts, credit cards, loans, etc. 30% of your monthly income should be reserved for enjoyment, that means – vacations, restaurants, movies, snacks and so on.
Mantra is the best way to resist the temptation. Ask yourself what is it that you want to save your money for, it can be, for example, a trip to Europe. When you see something you like ask yourself is that better than a trip to Europe and make it your mantra, it will be easier for you to save your money.