Whether you are an entrepreneur or a simple home-owner, proper finance management can give you huge benefits. Not only is it a healthy practice, it can also give you good credit rating scores that would help you land loans with lower interest rates. Proper finance management doesn’t always mean you need to hire a consultant or an accountant to take care of your wealth, you can do it yourself! As small as a few bucks every payday and discipline, finance management is a proven success route that all of us should be aware of.
Because recent inflations (2007-2009) and economical meltdowns, money management had been crowned as an essential skill to survive today’s financial demand. For businessmen and simple folk alike, here are some simple finance management secrets that you should be aware of:
1. Controlling your Expenditures
To survive, you need to spend. Food, gas, bills, loans and daily expenses are essential to fill our needs. If you always find yourself short on your weekly or monthly budget, then it’s time to tighten your budget for more important expenses to support your lifestyle.
- Observe how much you are spending at every given time, e.g. a month, a week, every three days, etc.
- List down the expenses you made within this time period, including the amount. Mark down those which you really need and are recurring such as your bills, savings, gas, food, etc and list down the “wants” which are the stuff that you don’t really need but buy anyway.
- Limit down your expenses by cutting off your “wants” to a minimum. Observe how much improvement you make by repeating the process every month or week.
2. Have Decent Savings
We know how much you try and try to save up a couple of bucks every pay period and it always ends up being spent. By following the steps above, you will surely have some extra cash, now all it takes is a little discipline to stick to your savings plan. Make it a habit to save at least 10% of your total earnings for the next six months. This way, you will have more than enough for rainy days or if not, you can continue on savings until there is one.
If you want something more out of what you are saving, then you can invest that up on stocks but don’t just go out and give money to other individuals. Do some research about how to properly invest your finances on some stocks, what are good markets to invest in and investing strategies that can help you manage your stocks better. While on the thought, you should also come up with a plan and a contingency plan just in case you encounter some difficulties in investing your finances. Investing takes an awful lot of heart, dedication and integrity. If you are faint of heart, then you would need more time to understand how the business works.
With proper guidance, these three secrets can get you a long way than just getting by on your expenses. It can help you manage what you have and turn it into something bigger and better for your future.
Irina Webandyou is a business writer and financial assistant for https://www.guarantorloansdirect.com. She loves writing about financial news, business articles and other things.