Money Management: Being Responsible for Your Funds

money management

People need to earn money for different reasons. Those with families of course need to have a means of putting food on the table and paying bills. Single people may sometimes also be breadwinners (say, if they are single parents or are helping to support some other members of their family), but they also have their own dreams to fulfil—and dreams usually require money. Business people focus mainly on earning more money so that they can grow their company in the most efficient way possible.
With all that said, you definitely have your own reasons and needs for spending the money you have coming in right now—and saving it is often a goal that falls by the wayside. But, it always pays to learn how to manage your money in safe and smart ways.

Always Pay On Time

bills payment

Debts can become overwhelming if you let them pile up every month. What’s worse, if you do not pay for your debts or your loans on time, the interest accrues and makes your debt snowball into something big enough to crush you. Late fees and interest stack up and sometimes cause you to pay almost double or even more than the original credit or loan amount. Whether you live in Singapore or Sweden, it’s always best to make your payments on time, whether it’s to your trusted money lender or your credit card company.  This eliminates late fees and other amounts that will pile on to the principal and the interest. Plus, it’s one worry off the list.

Keep Track of Your Expenses

When you buy groceries or other products, you’re bound to receive a receipt of what you’ve just bought. Receipts help you keep track of your expenses, so keep them long enough to jot down what you just spent. You don’t have to be an accounting whiz to keep track of your cash flow. If you take into consideration how you spend and what you spend your money on, you can sort out your priorities. For example, you can put the necessities such as food, electricity, other utilities and education first. This should help you figure out a realistic and doable budget which you should diligently follow, barring an emergency.

Avoid Biting Off More Than You Can Chew

Have you ever had that phone call offering to upgrade your gadgets or internet for a fee? Or maybe you were offered a discount on the first 6 months of an insurance plan? Perhaps you’ve just been offered a credit card with a higher purchase limit than your existing one? These are just some of the things that get people into financial trouble. While the offers may sound good, at the start, along the way, you might realise that you won’t be able to sustain payment for the duration of the contract or that you’re now spending way more than you ought. Before agreeing to any deal, think about whether or not you really need it, or if you have the means to pay for it in the long term. Take time to think about the financial implications, down the road. It may sound attractive at the onset, but be aware of the fine print, as well as your capacity to sustain the financial obligations.

Money is a tool, at best, to help us live the life we desire. We must be in control of it, and not the other way around. If you want to extend your knowledge about how to better manage your money, get some financial advice from trusted sources. That way, you can map out how to sustain your lifestyle, and maybe even make your money make you more money.