When it comes to the family budget, women are the ones who usually deal with money management. Sometimes, however, even with their native talent to prioritize spending, there may be months where revenues do not cover all needs. With these money management strategies, you will always have the resources you need for all your needs. Let’s start!
1 Keep a thorough record of expenses
It is the best principle you can follow when it comes to managing a budget because it creates financial awareness. It may seem too complicated to write down the expense after expense, but it will help you enormously and you can also make it easier by using an app. Currently, there are many easy to use phone applications in which you can write down all the expenses you make. This record will help you figure out what expenses you can cut, where you can save and where waste is produced if any.
2. Make a clear plan when it comes to shopping
When you go shopping do you often come back with things and foods you didn’t really need? It certainly happened to you that you filled the basket at the supermarket and realized at home that you actually spent more than you planned. The big stores have some well-studied techniques that attract you to buy as much as possible, even if you don’t necessarily need it. Whenever you go shopping, make a list and stick to it always, without any deviation. Thus, you focus only on the important purchases that you really need. You can use this guide as a reference to help you figure out if you really need an item from your list or not.
3 If you need money urgently, apply the golden rule for loans
It happens sometimes that you need money urgently, therefore must look for a loan. It can happen quite naturally that in some months the expenses will exceed your income, in case something unforeseen appears. However, if you want to act smart, it is best to take only small loans and preferably up to your next salary. You can ask someone close to you to help with this, such as a family member or a friend. You can also get enough money that is easy to repay for a lot of situations from specialized companies, for example, CashLady. In addition, such loans are among the fastest and safest ways to get money when expenses turn out higher than you anticipated.
4 Use the percentage strategy when dividing your monthly budget
A rule of budget management says that the best saving strategy is to divide the total amount by 50-30-20 percent to distribute as follows:
– 50% of the money goes to absolutely necessary expenses such as rent, car payments, bills or food;
– 30% goes to unnecessary expenses such as clothes, hobbies, toys;
– 20% goes to a savings account.
It’s the most useful and easiest rule to follow when it comes to managing your income and expenses.
As you can see, these principles are not difficult to follow. If you consider them daily, you will see that financial decisions will become much more easy.
Do you have any favorite advice on how to better manage financials? Please let me know!