MONEY IS A STICKY SUBJECT
Yet it seems to be the one thing that everyone is talking about, whether they’re gloating about all the money they have, or they’re ashamed of the minus number in their bank account. Rich or poor, we all need to practice good money management.
There is one thing that everybody has in common. Whether rich or poor, people are always looking for more ways to make more money.
It’s easy to think that the logical thing to do when you are running low on money, is to make more money.
But what if it the problem didn’t lie in making more money, but instead, in how we manage our money.
If you find ways to make more money any time you run low, but don’t know how to properly manage your money, you’re always going to be running out of it.
I didn’t used to think much about money management. I was just happy to know that I had money in the bank, even if it was dwindling away.
It wasn’t until getting married and deciding to become a stay at home wife, that I started realizing how important money management really is.
Like many marriages, my husband and I visit the topic about money often. Whether we’re discussing our budget, planning for an upcoming trip, or brainstorming for new ways that we can save money, the topic is pretty popular around here.
It is especially important for us to be aware of our spending habits because we are a single income family. We don’t have spare money to waste, so we have to be diligent.
To keep living comfortably off of my husband’s income alone means that we need to have a plan for our money. A proper way of managing it.
Making the choice to live frugally and come up with a plan for your money shouldn’t be taken lightly, it needs to be something that you are fully committed to.
COMING UP WITH A PLAN FOR YOUR MONEY NEEDS TO BE SOMETHING YOU FULLY COMMIT YOURSELF TO.
We are living in a day and age where grocery bills are sky-high, our mortgages become more than we can handle, and it doesn’t take long to start to feel like you’re drowning in bills.
The good news is that there is a way that you can navigate through all the bills and expenses of life, and still have a bit of spending money left over. Even as a single income family.
The biggest way for you to get control of your finances and save money while paying all your bills on time, is to come up with a money management plan.
5 STEPS TO GOOD MONEY MANAGEMENT
1. CREATE A BUDGET
The first and most important step in any good money management and money-saving journey should always be creating a budget.
I’m sure you’ve heard it over and over again, and the reason for that is because it is so important.
Creating a budget for your family allows you to see exactly how much of your money is being spent where, and how much you should be spending. Budgeting takes the guesswork out of money management and allows you to set boundaries and limits for your money.
Starting a budget for my husband and I has helped save us a ton of money. It helped me realize how much we were truly spending on food each month (we were spending way too much for just two people), and after I realized how much we were spending, it helped us cut our grocery bill in half!
If you don’t already have a budget I strongly encourage you to create one, or enter your email address below to get a free budget sent to your inbox.
2. ESTIMATE HOW MUCH YOUR BILLS WILL BE
Before you even get to the checkout, you should have a rough estimate in your head of how much your total bill will be, that way if it is higher you can catch it right away, rather than only finding out when you get home that you spend $9 on that bag of apples, rather than the $5 it was supposed to be.
If you would rather have a physical copy in front of your face, write on the back of your grocery list the price of each item that gets put into your buggy, or keep track of it on your phone’s calculator.
3. KEEP YOUR RECEIPTS
Keeping your receipts is an important step to any money management plan. Having your receipts (organized) and at the ready allows you to easily track where you’ve spent money (for later putting on your budget), stay on budget, return something if need be, and realize truly how much money you are spending.
And, if your bill ends up being more than it should have been, you have proof that you paid waaaay too much for that bag of apples than you should have.
4. WORK ON PAYING OFF DEBT
Any bills that have gone past their due date without being paid off are now accumulating a very generous amount of debt, all under your name.
There is a place on this budget that tells you how much you should set aside per month to pay off any debts you have. If you are determined to pay off your debt faster (good for you!) you can always cut back on spending in different categories and put the extra money you’re saving towards your debt.
Don’t push them to the back of your mind with hopes that they will go away – you will be thoroughly disappointed a year down the road when you see how much you are paying just in interest, not even just your original bill.
5. DON’T FORGET TO SAVE
Don’t get caught up in paying all your bills then treating the remainder of the money as spending money. You will want to build and grow your savings account, among all the other bills you’re paying.
Treat your savings account as if it is just another bill. As soon as payday comes, put a chunk of it into your savings account – and don’t touch it.
It won’t do you any good if you’ve got all your bills paid off, but no money saved up in case of an emergency, or want to buy a house or car, or need to have work done on your car.
With these 5 money management tips under your belt, you are more than equipped to take control of your finances and relieve the money stress in your life.
What are some of your favorite ways to manage your money?
How to Thrive When You’re a Single Income Family
10 Ways to Save Money While Living on One Income
20 Things we Took Off Our Grocery List to Save Money
How to Start a Successful Blog & Make Money From Home
Time Management: 7 Simple Steps to Success
What are your best & most used
money management strategies?
I’d love to hear from you!
Rejoice in hope, be patient in tribulation, be constant in prayer. Romans 12:12