Managing your money is very critical life than earning more money. The thumb rule in life management is the art of spending money wisely and saving as much you can. Shock in your life always comes when there is a need for money. So hence preparedness in money is the most crucial factor than earning money. Managing your spending is the most important thing which can save you in times of need. And you will never know when this type of need arises.
The following are some of the key rules to follow in life to have a great money management procedure in life to improve your economy and preparedness for shock.
- Plan your earning and spending systematically and involve all your family members in planning. This can help you out in planning effectively and fulfilling all needs. The other aspect is that when everyone is involved in planning you make sure that you get thoughts from all to adjust and minimize your spending.
- Time your purchase of household things based on season and demand and supply factor. When you can plan for food storage or water storage or grocery storage you can save a little money through that.
- Plan your spending based on a spread sheet followed plan. Make sure that you list out all your spending in a concrete manner and do a review of your income versus expenditure.
- Have your own spending plan rather than following other’s life pattern. Always remember that one life style is different from that of others.
- Choose your family goals and spend money on that. If your family wishes to buy any house than put a personal loan and buy a house for the future.
- Plan at the start of the year to avoid any shocks in the middle of the year. An economic picture of your whole year will be a countless controller and can benefit to meet your family’s economic goals.
- Make sure that you know where you have spent the money. Keep a good track of your spending, note it down and fill the bills.
- Don’t opt for any credit cards; try to use your own earnings to meet your family needs. This can help you out in having a fair income. Or else you will fall trap in the hands of credit banks and pay more interest than the money which you have borrowed.
- Always keep in mind that you save money and then spend money. In the entire income which you receive make sure that you save at least 10% to 20% of the money in bank and then start planning for spending.
- Never deviate from your plan, stick to what you have planned in the beginning of the year and spend accordingly.
- Make sure that you cross check your plan once in a while, we suggest once in fifteen days to keep track of yourself.
The above rule when strictly followed can really bring in change in your life and make you a successful person with more of a finical reserve. Make sure that you share the above information to your friends so that they also get benefited out of this.