How to Manage You Money

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The reality of money consciousness and the truth about money management lies in the ability to save money, shop sensibly and accomplish all your financial goals at the same time.

Understanding our own financial position is the key to achieving this goal; this will take time and patience and will be mastered through experience.

Sticking to sensible financial practices and mastering our own expenditure patterns will develop and advance your financial mentality and help you cultivate “money awareness” .this leads me to my first point

Set Financial Goals Each Month

Setting yourself financial goals each month, will help you create a pattern of expenditure which over a period of time will become habits and this in turn will lead to financial consciousness

Setting financial goal is very helpful and the best part is, these goals do not need to be big goals

An illustration of this is, if you decide to save 5 % of your expendable income each month as part of an annual plan, this will help build financial awareness

At the end of the year you do not completely achieve this goal; you would have achieved financial awareness to a large extent and would probably have saved more money than you would have done without the process.

Budgeting

Budgeting will help you live within your means, it is simply financial planning, it helps you evaluate your income against your expenditure and prioritise your financial needs.

Budgeting also helps to create a spending plan and help you spend money in the right areas, for example you can budget to pay of credit card debt and use cash more often.

A good tip is shop around for deals and switches your   utility or insurance plans to suit your needs and to take advantage of supplier deals

Budgeting helps cut cost and plan expenditure and create “discretionary income”, this is the income you create from budgeting and is left over money.

Planned Shopping

Planned shopping trips also help save money, using this module in conjunction with budgeting works really well.

Bulk buying for a period for example one month, will ultimately save you money, although the initial cost may be higher but on the long run you will save a lot of money.

Planned shopping trips means no more incessant trips to the supermarkets and you even save on gas.

Take advantage of sales offers, coupons, discount outlets, loyalty card, store points, the list is endless if you just look around. 

Savings and Investments

Savings and investments are very important to your financial growth; this must not necessarily be done in large amounts.

A small percentage of your income set aside each month will accumulate to a small fortune and investing this nest egg in a high yield savings account will not make you a millionaire but will go some distance to wards your financial well being.

The best way to achieve this goal is to utilize your discretionary income as the core for your savings and investment plan.

Financial Mindset

Financial mindset is the module that deals with been onto you’re your financial dealing, remember to monitor your credit file, it is worth it, it is the life blood

Of you financial well being

Understand Taxation

Take all the tax deductions you are entitled to and discuss with experts to see where you can make father savings.

It is worth paying for this service as you might save a lot more than you think.

This might be in the form of charitable donations which are tax deductible

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Dealing with Creditors

Keep all your creditors in the loop, and maintain communication at all times, let them know when you cannot afford to make repayments or when repayments will be late, always offer a token payment and negotiate at every step.

You will be surprised how persuasive you can be and how much control you can take over your financial position.

Cultivating money consciousness, exercising some self discipline and a little creativity are great tools in creating long term wealth.