Don’t we all wish for a magic formula or simple trick that allowed us to never have to worry about money or have to manage our finances again? But wish as we might, we also know that isn’t going to happen. However, there are some simple things you can do to manage your money. Here are five basic ways in which you can tackle your personal finances and get it on the right track.

Write down your financial goals
Take some time to write specific, long-term financial goals. You may want to take a month-long trip to Australia, buy a property, or retire early. All of these goals will affect how you plan your finances. For example, your goal to retire early is dependent on how well you save your money now. Other goals, including buying a home, starting a family, moving, or changing careers will all be affected by how you manage your finances. Once you have written down your financial goals, prioritize them. This ensures that you are paying the most attention to the ones that are of the highest importance to you. You can also list them in the order you want to achieve them, but a long-term goal like saving for retirement requires you to work towards it while also working on your other goals.

Make a budget and stick to it
We know you have heard this one plenty of times but we can’t stress enough on its importance. Your budget is one of the biggest tools that will help you succeed financially. It allows you to create a spending plan so you can allocate your money in a way that will help you to reach your financial goals. A budget will also help you decide how to spend your money over the coming months and years. Without the plan, you might spend your cash on things that seem important now, but don’t offer much in terms of enhancing your future. So list out, in detail, all the things you need money for, on a weekly or monthly basis, and allocate a set amount for it and spend accordingly. You will need to understand your expenses and your income to better manage your money and there’s no easy way to do that than creating and sticking to a budget. 

Set a savings goal
Some people find it hard to get motivated about saving, but it’s often much easier if you set a goal. Your first step is to have some emergency savings – money to fall back on if you have an emergency, such as repair work at home or if you can’t work for a while. Try to get three months’ worth of expenses in a separate account. Don’t worry if you can’t save this straight away, but keep it as a target to aim for. The best way to save money is to put some money into a savings account every month. Try to save 10 to 15 percent of your income. If your expenses are so high that you can’t save that much, it might be time to cut back. But saving a set amount each month is an important aspect of managing your money well. Don’t worry if you can’t set aside a large amount each month. Be consistent with it and over time it will add up.

Make use of money management resources
They say knowledge is power. Financial experts can give you some much-needed advice on how to manage your cash the right way, as well as some inspiring stories to get you focused on being the best version of yourself in terms of crushing it financially. The key when researching which expert to follow is to carefully pay attention to what they say, absorb it, and only take the pieces of advice or guidance that can really help your case. Being able to effectively manage your money will make life flow much more smoothly, not to mention help lower your stress levels. Being organized and smart with your money will also save you time as well as potential headaches in the future. So, map out your personal financial strategy with the help of financial resources available out there. 

Cut down unnecessary spending
Take your own lunch to work, don’t eat out frequently, watch movies on the weekdays, and don’t buy anything you don’t need. There are a lot of things you can do if you are mindful about your money and spending habits. One good way to cut down unnecessary spending is to carry as less cash as possible. Figure out how much you need on a daily basis and only carry that amount. If you can, don’t carry your debit and credit cards. Leave them at home. This way, you won’t be able to buy things even when you are tempted to make a purchase while strolling down New Road or Durbar Marg on your way to a meeting post lunch. There really are many things you can do to cut back on your spending if you keep a track of your monetary habits.
 

 
• management