Money Management Tips - How to improve Personal Finance

Budgeting

Budgeting is a great way to save money and make sure you don't overspend. There are many ways to budget, but here are some tips to help you get started.

First, write down the information about your spending. Make a list of what you buy, including food, gas, utilities, etc. Next, figure out how much money coming in every month. Then, subtract the amount of money you're spending from the total income you receive. If you're still left with any money leftover after paying bills and saving for emergencies, put that money toward your budget.

Pay Yourself First

When you first start working, you might not think about putting yourself first. However, if you want to build wealth and save money, you need to put yourself first. Put $25-$50 per paycheck into a savings account before you pay anything else. You'll find that once you do this, you won't even miss the cash!

Save Money When You Shop

 You may already know that grocery shopping can add up quickly, especially if you eat out often. To keep yourself from going overboard, look for coupons and sales. Also, shop at stores where you can use rewards cards. Many stores offer discounts just for using their credit card.

Use Cash Instead of Credit Cards

 If you're looking to save money, then you should avoid using credit cards. Using them means you're borrowing money from someone else. Plus, they charge interest on top of the original purchase price.

 Get Rid of Debt

Debt is a enormous problem in our society today. Unfortunately, most people fall victim to debt because they believe it's necessary. But, getting rid of debt isn't something you need to do right away. Start by making a plan to pay off your debts slowly. Once you've paid off one debt, move onto the next.

Automate Your Savings

 Automating your savings is a good way to stay on track. Set up spontaneous transfers from checking to savings accounts. You can set these up online, or you can ask your bank to do it for you. Either way, it's a good idea to automate your savings.

Focusing on savings

Start Saving Now

The best time to start saving money would be now while you have the money to spare. If you wait until you are struggling financially to save, you'll find yourself paying higher prices at gas stations, grocery stores, restaurants and even on utilities simply due to inflation. There's no need to worry though, because there are plenty of ways to start saving today. First off is to take advantage of free services and discounts out there. Many companies offer some kind of discount for their products and services if you sign up for online shopping accounts. Other times, they'll send you special offers via email, social media or text messages. Another way to save money is to get involved in community activities. Participating in local events can help you make new friends and meet people who share your interests. Many communities have volunteer opportunities where you can donate your time and get something in return. Also, volunteering for non-profit organisations can often lead to employment opportunities down the line. Finally, we all know how expensive gasoline is. Make sure you're driving fuel efficient cars and try not to use the car much during the week to avoid using high priced gas. You can also invest in a generator to power things like refrigerators, computers and other electronics.

Reduce Your Electricity Bill

We've already talked about electricity being costly on a monthly basis so what do you think happens when you add in the summer months? Most people have seen their electric bills increase significantly over the hot summer months, making them feel as if they're drowning in debt. To reduce your electricity bill, keep your air conditioning unit clean and oiled. This helps prevent the compressor from freezing up in the wintertime and keeps everything running smoothly. On top of that, make sure that you turn off your lights when you're going to sleep, especially at night. Lights tend to consume a lot of electricity, so turning them off when you're not home could greatly cut back on your bill. Lastly, consider installing an Energy Star appliance. These appliances use less energy than traditional models and can cost anywhere between 30% - 50% less.

Buy Used

If you're looking to save money, don't just go straight for the newest model. When you buy a new item, you're spending cash right away. In comparison, buying used items means that you're getting a quality product without having to spend extra money on repairs. Buying used is also a great option if you want to be environmentally friendly. Instead of purchasing plastic packaging for new goods, you can opt for cardboard boxes for your old purchases. Not only does recycling help protect our environment, but it also saves you money! Plus, used items are always cheaper than brand new ones. Check Craigslist and local classified ads for good deals on second hand items. You might be surprised at the amount of stuff you can find.

Cut Out Unneeded Expenses

 Cutting out unnecessary expenses is another way to save money. Going green is a big trend right now, but unfortunately, many companies are still trying to figure out exactly what the term means. A simple search online will give you countless articles telling you how to live sustainably, but at the end of the day it's really up to you to decide if you want to become more eco-friendly. Do you want to recycle paper instead of throwing it away? Does composting mean fewer trips to your trash bin? Is driving a hybrid actually more economical than a regular vehicle? All of these changes may seem small, but collectively, they can have a huge impact on your carbon footprint. If you want to get started, here are 5 steps to guide you along the path of sustainability.

Shop Online

Saving money doesn't necessarily mean you have to purchase all of your goods online. However, shopping online can be a great way to save money since you don't have to pay for shipping. If you're looking for clothing, accessories or shoes, check out sites like Zappos, Nordstrom Rackand H&M Direct. You can also shop websites like Ebates that reward you with cash back for shopping at specific retailers. Shopping online can also eliminate the need to visit several different stores to compare prices. Websites like Amazon, Target and Best Buy allow you to compare prices and choose the item you'd prefer the most.

Use Coupons

Coupons are a great way to save on everyday purchases. If you're a savvy shopper, then you probably already know this. But for those of you who aren't quite as familiar with coupons, they're basically pre-cut price tickets that allow you to receive discounts on food, clothes and household items. At first, you may be sceptical about giving someone else your hard earned savings, but once you realize that you're receiving the same thing for half the price, you may rethink your stance. Whether you use printable coupons or shop exclusively at certain stores, couponing can definitely help you save money.

Avoid Overdraft Fees

Overdraft fees are among the worst financial nightmares you can experience in the world of banking. Unfortunately, this is an industry full of ripoffs where banks charge exorbitant fees for overdraft protection. Fortunately, there is an alternative to this. By setting up automatic deposits through direct deposit, you'll never run the risk of incurring any fees. The best part is that your bank won't even notice that you didn't incur any fees. You'll also save money since you won't have to rely on checking your account every single month to determine whether or not you've incurred any fees.

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