Managing Your Money

BillNye By BillNye, 6th Aug 2012 | Follow this author | RSS Feed | Short URL http://nut.bz/3ln2-y6d/
Posted in Wikinut>Money>Money Saving Tips

Points on how to save money and learn how to effectively budget. Saving money by learning a few easy principles.

Managing Your Money

Keeping an eye on your money can make the difference between becoming behind on payments and having money left over to invest or save for a rainy day. While saving money may not come easily to some, a few pointers and the decision to change the way you look at your spending can help you turn your cash flow around.

Prioritizing

The first thing you need to do is sit down and create a budget by prioritizing how much money you will spend and what NEEDS to actually be purchased. The necessities would be obvious things such as groceries, household items, and other similar types of purchases. A great tip when it comes to food is to make all your meals at home. If you can't go home on your lunch break, pack a lunch in the morning and eat it at the office. You would be amazed how much money can be saved by not eating at restaurants, and learning to make your own meals can be fun and extremely rewarding. So create this budget, write it down, and try your best to stay within the numbers you have allowed yourself to spend each month.

Saying "No"

While budgeting is important, it will never work unless you decide you will really stick to your budget. Vices and bad habits can be the biggest pitfall for losing money. Whether your vice be drinking, smoking, gambling, fine dining, shopping, etc., they will make you spend money on things that you do not really need and you will end up in a pinch for money that you do not need to be in. So, in effect, you must learn to say "no" to these vices and chose not to spend your money unless you have put in on your budget at "necessary". However, once or twice a month it is a good idea to allow yourself to go spend money on things that you are interested in (even if it is your vice), because otherwise you will end up binging at some point and possibly spending more than you would have initially.

Purchases

A good rule of thumb when it comes to purchases is to make research and then wait. Researching a purchase allows you to become informed about the item in question and will prevent you from spending more on it than you have to. Waiting will help you strengthen your ability to say no. It will give you the discipline to learn this important skill in the future and learn how to exercise it more effectively. Also, waiting for a month or two before purchasing an item can help you decide if you really need that item or not. At the end of a month or two, if you realize you no longer think you "have to have" that item, you have just saved yourself even more money.

Growing Your Money

Investing is a great way to grow your money. If you learn how to budget, say no, and research and wait on your purchases, you WILL have more money left over at the end of the month. The best thing you can do with this money is to invest it somehow. Whether it's through a mutual fund, individual stocks, CD accounts, or pension funds through your employer, you will put your money to work for you while you work for more money. Eventually, you will find that you have more money than you have in the past, and that it is effectively growing to new heights.

Helpful Links

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Tags

Budgeting, Expenses, Investing, Money, Planning, Prioritizing, Purchases, Saving

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author avatar BillNye
My hobbies are hunting, fishing, and weight-lifting

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author avatar Nitul anand
6th Aug 2012 (#)

A lot of thanks...!!dear BillNye ...!!!
Please share emotions ...

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