Saturday, August 20, 2011

Money Management Tips

How To Manage Money
Prioritize Your NeedsPrioritize your expenditure. Spend money only on items that are an absolute necessity for you. Trim expenses that are not essential. For example, you can opt for reading the newspaper online so that you can save those extra bucks. Become a member of your local library and borrow books instead of buying a new one. You may also ask your friends or family to lend you books that are not required by them in the near future. Make a list of all your needs and then see which of them are not essential for your living. This way you can save a good deal of money. With certain adjustments in your lifestyle you can definitely save a few bucks.
Smart ShoppingSmart shopping helps save money. Look for stores offering discount coupons so that you can save money on your next purchase. Many stores offer a rebate if you buy groceries in bulk. If you are fascinated by brands, why don’t you try generic brands? This will help you to save a lot of money as well. Buying food items that are on sale and checking out thrift stores and garage sales for good deals is also a great idea.
Say “No” To Junk FoodIf you eat out often, start cooking your own meal at home. It might sound clich├ęd, but never miss eating your breakfast daily. Not only will it help you to stay fit and healthy, but you can stay away from your mid-morning snack attacks that will save you a couple of bucks as well. Now, isn’t that a smart tip?
Limit Your Monthly ExpenditureLimit your monthly expenditure at the beginning of the month. Make a list of utility bills, groceries, mortgage, etc and make a note of how much money you need to spend on each of them. Make a budget and try to restrict yourself within that limit.
Avoid Credit CardsTo abstain from such a shopping spree, avoid using credit cards. Leave your credit cards at home to restrict yourself from unnecessary spending.
Drive SmartUse public transport as much as possible. Take a bus or train to your workplace instead of using your car or bike. If public transport is not available, opt for carpooling with other commuters instead of driving to office. Walk down or cycle to go to the next block. This will drastically bring down your fuel bills.
Open A Savings AccountAnother good idea to save money is to open a savings account with a bank. Make it a habit to deposit a fixed amount every month. In this way you will save a neat sum of money.
The Little Things That Make All The DifferenceDo you forget to switch your fan and lights off before you march to work, leaving the fan to rotate aimlessly and the bulb to illuminate an ant’s lost path? The production of these wasted kilowatts not only contributes to power shortages and global warming but inflates your electricity bills. Train yourself to tap every button on your switchboard towards the “off” position before you exit your residence. This applies to the socket of your cell phone or laptop charger as well.
Appreciate A Coin’s WorthAs people shed thousands and thousands on expensive cars and clothes, it’s time you take a deep breath and contemplate the worth of a coin, the lowest denomination. Go back to your younger days, buy a piggy bank and drop in the change you acquire after grocery shopping. Break it open after a few months and be amazed with the full amount! A coin that you would cast aside without thinking twice is the base of your money tower. Never underestimate the worth of 50 cents. Dig into the pockets of your jeans and discover another 50 cent. Voila! You have a whole dollar now. Go buy a cookie and a soda pop!
Invest In The Best!While others invest in game shows and lotteries that hold a zillion in one chance of winning, be the wise one as you invest your money with a given return and then reinvest your earnings as you receive them. Do not be too hasty and rush into an investment proposition that appears lucrative on the surface. Follow your instincts but think rationally at the same time. Remember that you have to assume a fair amount of risk in order to earn high rewards.
Let The Computer Take ChargeComputer programs and sophisticated technology greatly aids one’s endeavours in managing money properly. They provide you with unmatched information and guidance in organizing money matters. From balancing check books to paying taxes, computers can be a lifesaver and deter you away from making regrettable mistakes.
Save, Or Else Start Digging Your Own GraveKeep an eye on where your income goes. Try building a good credit reputation by controlling bad spending habits and clearing all debts beforehand. Never go overboard with debts and don’t be enticed by every product in the market. Save to lead a beautiful life in the future. Moreover, it is crucial to save cash for unexpected events and emergencies. Sometimes we fall ill and need to pay off fat medical bills. Maintaining fixed deposits is the best solution to dealing with unexpected circumstances.
Track Your Income And SpendingAdd the number of cheque stubs you have for a quarter year and divide by 13, the number of weeks in a quarter. This gives you a wider view of your earning power. Once you get this, perhaps you could find out where your money goes. Make your first purchase a small notebook and pen you can carry in purse or pocket. Record it all and make suitable alterations. Pay bills on time to avoid late fees or look around for and switch to credit cards with lower rates.

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