3 Tips to Manage Your Money Effectively

Money, money, money. It can take up a lot of our life sometimes causing us to worry and blocking us from doing a wide spectrum of thing.

Money can become our Master. However, it shouldn’t be. We should master Money by learning how to manage it properly.

So here are a few tips that will help you do so.

1. Track your expenses

You need to be aware of how much you spend and what you spend your money on. But first of, never spend more than you can afford — especially if one of your goals is financial independence.

You can create an Excel spreadsheet — just keep it simple, you can even use mine for free — in order to track your earnings and spending. I can assure you that you will be amazed by the amount of money you manage to spend in a month or the sum of money you spend on foolish things.. When you realize that your balance is negative for one or several months — or even the whole year –, you’ll definitely do not want to spend money anymore.

2. Get a savings account

Life is full or unexpected events. Some of them require money. So now that you know how much you spend monthly, you can take the excess money you have for the month and put it in your savings account. You should definitely have enough money there to completely live off of it for at least three months.

I mean it’s nice to know that if someone steals your cellphone, you can buy another one thanks to the money you’ve put aside — I know that seems materialistic but when you live alone, it’s not reasonable nor safe to don’t have a phone number people can call you at.

If you’ve done that already, you can keep the extra cash for vacation or investing — and no, it is not the same as trading.

3. Don’t forget to live

As long as you can afford it, you should have a certain amount of money dedicated to your hobbies. You still need to live and a few restaurants here and there always feel nice. At the end of the day, you can’t keep ALL of your money in an account somewhere. Having the safety of emergency funds and putting your money to work — aka investing — is nice but that doesn’t mean you can’t actually use and enjoy your money ;).

 

I recently wrote a guest post on the Millennial Money Guide blog — yeeeah, my first guest post — you can check it out right here :

7 Valuable Life Skills You Will Learn In College

I am also starting a new section/series on this blog where I feature entrepreneurs, business owners who share their experience building a — or several — business. You can participate and help guide others who want to become entrepreneurs, business owners by filling out this form right here.

Thanks for your support !

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