ACE Money Transfer - Blog

What are the 10 Simple Ways to Manage Your Money Better?

What are the 10 Simple Ways to Manage Your Money Better?

12 Oct 2020

While trying to attain a spending balance between need and greed, people often face difficulty, as to how to manage money in the best possible way.Managing your finances only to fulfil your basic needs, does not meet in ends with the desire to fulfil other temptations of life. Therefore, you might need to learn some awesome ways to deal with money in a balanced approach.

Effective Money Management Strategies

Life is much more and beyond about continuously worrying for your financial state, and always struggling with improving it. It's often seen that people, even with limited budgets, manage to fulfil their needs besides managing their expenses for other accessories of life. The major skill they have is a rational attitude, logical summing, and practically handling of their finances, which enables them to boss their financial affairs but also enjoy life at its best.

So its time for you to learn, how to keep a perfect balance between your budget, expenses, savings, and purchases all by yourself, with financial success. For this, we have brought you 10 effective and precise strategies to manage your money without experiencing any loss or stress.

1: Outline and Utilize A Budget

Having a budget does not mean that you become a math expert who might have to go through complex calculation problems, rather a simple logical calculation will help you out to draw your budget. People with a carefully lined up budget always manage to tackle their finances effectively. Therefore,    get yourself ready to spend a few hours at the beginning of a month to manage your budget effectively.

One thing that must be kept in mind is that just having a budget does not necessarily mean that you have achieved your management goal, rather using it in the exact way as was originally drawn is also needed. Because it would be useless otherwise if you make a budget and keep it for the rest of the month for gathering dust inside your drawers, instead keep on regularly updating for the recent spending of bills, purchases, and other expenses, So that you could regularly have an idea, how much you have spent, how much you can spend outside of your budget, and what could be saved within the same period.

2: Workout the Essentialities of a Balanced Budget Plan

Creating a budget plan may sound easier to some and complex to others, some people may outline a rough budget template to be followed the whole month, but it results in the same unbalanced spent, debt, and pay cycle. Therefore, it is important to figure out and learn the small regularities of a creative budget plan to spend your money wisely. You can go for a pen and copy or attain help from the professional budget templates for working out their budget accurately. For the accomplishment of a balanced budget working approach, you may need to collect and jot down your total income and expenses for evaluation of smooth cash flow for a monthly period.

Outlining Income: first, enlist your income sources and the average amount of money you receive from these resources. If it's not some fixed amount, then jot down the minimum possible money receive so that the budget never ends up dallying in what was proposed and what was never achieved through the budget plan. The income sources may include

  • Pay from your major job
  • Your hourly wages
  • Salary from your side jobs
  • Possible bonuses (to be added in option)
  • Already saved money
  • Side hustles and business spending (if any), etc.

Outlining Expenses: the next important thing to include in the budget plan is to jot down every minor to major financial expenses that you might have to deal with in the whole month.  This is an easy task since it includes a fixed calculated amount to be noted down based upon your expectations from the previous spending.  These may include

  • Home rent and car expenses
  • Utility bills
  • Other bills (internet, telephone, electricity, gas, water supply, etc.)
  • Fees (education, gym, etc.)
  • Pays (maids, gardener, driver, etc.)
  • Variable and particular expensive (for that specific month, for example, any upcoming family event, etc.)

3: Avoid Unplanned Spending

A critical part of any budget plan is its exact following to ensure the right amount of balance between income and expenses. However, people most often tend to slide away from their own proposed budget plan by indulging in expenses that are not part of their basic financial fulfilment.

Of course, you can spend money if you have extra income sources to go crazy with your expenses, but it should be limited and most importantly, not a planned expense of routine. Routine shopping and online purchasing must be strictly avoided. The fun part of shopping and extra entertainment activities is amusing and tempting. Yet, if it becomes a part of your personality, it may end up not only being less interested but will also stick down your finances in the middle of debts and payables.

So to avoid such unbudgeted spending, try to limit your purchases and don’t let them interfere with your planned expenses. Its best practice to collect and write down in detail about your income and expenses aforementioned in the previous heading and to calculate your net assets and liabilities that you own.

Assets: Your assets might include anything that has worth to you in terms of financial standing, they may include

  • Bank savings
  • House equity
  • Vehicles
  • Stocks and bonds
  • Shares and annuities
  • Plots and rent houses, etc.

Liabilities: While your liabilities might include all your payable, dues, and debts that you must consider while spending out your current income carelessly. Your liabilities may include:

  • Home loans
  • Car loans
  • Business loans, dues, and possible coming payments
  • Personal loans (students’ loans), etc.

After noting your assets and liabilities alongside income and expenses, you will be able to figure out your monthly financial standing and your net worth every year which is quite simply attained by subtracting your total liabilities from your net assets as (Assets – Debt = Net Worth).

4: Limit Your Credit Card Dealings

Its is often taken into account that people with credit card tend to spend unnecessarily, owing to the availability of a source that financially liberates them from timely accountability. However, the same scenario goes against them when they had to pay back through debt and pay cycles to the authorizing party (banks). This is simply because whenever someone having credit card runs short of money, they turn to their credit card to entertain themselves without worrying about expenses, not giving importance to conscious thoughts that they ultimately have to pay back later on.

So what you need to do is to  Resist the urge to spend unbudgeted expenses, especially the things you don’t need, but for tempting satisfaction. You may also practically avoid taking the credit cards with you will going shopping or groceries. This will help you out to save your money from spending on overborrowing silly temptations, rather saving them up for big purchases in the future. This practice will directly control your urge for un meaningful spending while bringing a balanced approach towards income, expenses, and savings.

5: Contribute to Savings Regularly

People with regular saving habits always stand out as being most effective in dealing with their finances. Indeed, the best possible way to manage your finances is to keep a balance between the right amount of spending on important needs, and keeping a major amount for side expenses and depositing some money (even if a few dollars) into your savings accounts regularly. This polishes ones’ financial management skills, alongside giving them a healthy economic standing.

It does not matter how much you save. The important thing is learning the art of saving regularly because, with time, it enables you to increase saving amounts effectively and rightfully utilizing them in need. You might have heard about people saving a small amount regularly, which ultimately turns into major life savings that are used by them at the crucial time of life.

Money-saving habit also improves your independent status and your money spending skills. However, while saving deposits in accounts don’t try to manipulate your regular expenses by cutting the needed amount short, because that will compromise your quality of spending. Although its best to have a monthly depositing payment plan, you should acquire some positive attitude in spending money with an open heart when needed. Don’t go to the extreme attitudes of a spendthrift or a miser, rather keep it balanced. Try to compare shopping prices, grocery items prices, so that you could purchase the best quality product at the best prices possible. Also looks for discounts offers, coupons, and cheaper items schemes that you might encounter during purchase.

6: Continuously Practice Money Management

All the steps of budget making and implementing might be tiring for you, but once you set up a plan once, you can follow it for every coming month onwards. In the beginning, you may not be able to follow your budgeting plan fully. Still, with time and composure, you can manage your money by cutting off excessive purchases, bargaining attitudes, and saving habits for the future.

Of course, practice makes a man perfect, so the same goes for financial dealing. Even if you face difficulty in controlling yourself while undergoing circumstances like lacking discipline in purchases and impulsive and expensive buying, but slowly and drop by drop you may develop the healthy habits of saving and avoiding the purchase of unimportant items. Just keep in mind your rough path and plan forward with your future goal in mind. Be an insurance manager for yourself and your family.

7: Change Your Mindset For Financial Matters.

Another important strategy for effective money management is to work on your mindset for spending. If you take money as the sole key to every life activity based upon the concept that is followed in the mechanistic and capitalist world of today, then this is the wrong attitude. Similarly, if you are looking away from the practical realities and think money can’t buy happiness, then its again a wrong approach.

The best is to bring a balanced outlook for money by taking it as a need that should be used to tackle daily life necessities. Don’t just stay positive with even low financial standing owing to the spendthrift attitude of expenses. Be more of a homeostatic runner of finances by acquiring a positive outlook for money. Spend it in the budgeted manner and save it to bring out the futuristic financial stability goal.

8: Set Out Future Financial Goals

The most important step of any management, whether, personal, social, emotional, or financial, is to have an orientation towards particulars goal and its linked objectives. Thus, while figuring out a management strategy for your finance, you also need to establish a goal regarding your financial standing in the future. Defining your goals has also to do it your mindset for money as elaborated in the previous heading. A futuristic look for money management will help you to figure out your short and long terms practical goals of finance. Your short terms goals should include expenses laid out for emergency needs while your long terms goals may include a retirement plan, job leaving scenarios, study and marriage plans for yourself or your children, etc.

As long as you will have in mind these short and long terms goals, you will always try to accomplish effective financial management. The outcome of goal-defining will help you to make decisions regarding retirement options easily, or financially contributing towards your kid’s degree, among others. These long terms plans can only be fulfilled with your right full thinking and act starting from today and starting from right now.

9: Be the Boss and Review Your Plan

Since money is yours, need Is yours, spending, payments and payables are yours, and of course, savings are yours then why not become a boss of yourself and track the unplanned and non-budgeted spending carefully. Just like a diet planner strictly follows and keeps track of his/her diet record, you also need to keep a strict eye on your financial record—track down your spending habits, and your ill spending attitude for purchasing here and there.

Such a practice will also help you budget out more carefully over time. Keep a record of your receipts and purchases. Try to cut things off from grocery and utility bills which are not needed. Avoid spending much through your credit card, in fact, if not necessary, don’t even make a credit card for your account or keep it somewhere inaccessible at least when going for window shopping. This might sound funny, but this is how you become a boss to yourself.

10: Stay Motivated and Relax

You might need the management of finances owing to your prolonged debts and payables that you have been piling up for months and years. So, you got to be prepared for some rough scenarios and a long road to chase before finally attaining your balanced financial standing. So, for that, you should gather and work on small steps rather than looking for some big lash altogether, because that is not possible when it comes to financial management.

 Just follow the strategies listed above remember your goal, keep in mind your objectives in terms of payables and savings, and stay motivated that Sonner you will be able to manage your finances effectively. Also don’t be afraid of taking help from your friends, families, and professionals, ask them out for any problems on the way. Relax your mind after planning out the budget and enjoy it upon successfully following it through the month and even year. Entertain yourself with a treat and unplanned shopping by spending a part of your savings as a reward to yourself.

Having said that, don’t just fall back to your old spendthrift or frugal ways, sometimes mistakes are acceptable but don’t practise them regularly and make a part of your spending habits. Get into the system, proud yourself for struggling with your finances on your own, take a breath and relax for budgeting out your expenses. Leave the rest to the time, because ultimately the process is going to be extremely rewarding.

Personal Suggestions And concluding Thoughts

Although the 10 simples ways aligned in this article, can surely help you to manage your finances effectively, We suggest   Hiring professional assistance to help you deal effectively with your finances. It's just like hiring a dietician, a tutor, a lawyer, or other professionals for keeping us on the right path with a strict check of routine activities. We, therefore, recommend you to also look for some professional money management help alongside managing its own your own.  Having said that, following the 10 strategies listed above will indeed help you out to manage your money without harming your financial status, which could otherwise lead you towards a spendthrift or frugal attitude due to a lack of knowledge and management skills for your finances.

So, don’t get frustrated with your current debts and payables, start today and start from right now to manage your money effectively. Figure out your budget plan, outline your income, expenses, liabilities, and assets, assess your needs and possible future needs, try to make something out for savings, review the whole money management plan

Get hold of your credit card scores and reports, know your net worth (Assets – Liabilities) and your monthly cash flow (Income – Expenses), get help from a professional finance manager. Here you go to becoming your own boss while enjoying the process to ensure your stress-free financial status in the future or money related problems in future.


Attention Nigerian Customers! Grab A Chance to Win a Free iPhone SE 2020
Beyond Borders, Not Beyond Protection: Essential Online Safety Tips for Pakistani Expats in Ireland


  • Categories
  • Country