7 money management tips to ensure you'll never be broke
It's important to keep track of your spending habits, whether your cash comes from a family allowance, or you work part-time
There are many benefits to becoming an independent adult, but suddenly being solely responsible for your money can be overwhelming. If you're not careful, and don't keep track of your spending habits, it’s very easy to get carried away.
To manage your money and avoid being broke, we've got seven simple tips.
1. Put it away for a rainy day
Start by putting a portion of your money aside as savings. It doesn’t have to be much; even five or 10 per cent each month will add up to a nice figure by the end of the year. And when we say put it aside, we don’t mean put it in the side pocket of a bag, or on top of your cupboard. You should keep the money somewhere out of sight and out of reach so you’re not tempted to use it.
You can keep it in a kid's piggy bank (the kind you need to break open), or set up a separate bank account for your savings.
2. Awareness is key
It takes a bit of effort to keep track of your expenses, but having a physical record can help you see where all your money has been going – and the numbers might surprise you. Use your phone to keep a record of the things you buy (there are some great tracking apps), or make a simple spreadsheet on Excel or Google Sheets.
How to set realistic goals and actually follow through on them
3. Come up with a budget … and stick to it!
Once you have a clear picture of where all your money is going, you can draw up a monthly budget. Decide how much (or rather, how little) in total you’d like to spend in the month and allocate a percentage of that amount to paying for things like food and transport. There are number of budgeting apps, like Wally and Pocketbook, that can help you stay on track.
4. Fight the urge to splurge
The line between needing and wanting something can be very blurry when it comes to shopping. We often spend money on things we don’t actually need. Next time you feel the urge to buy something, ask yourself if you really, realllyyy need it. The answer will most likely be no. Just … walk away. Or close your laptop, online shopping is far too easy.
5. Stay clear of the danger zone
If you don’t think you can ignore the siren call of a pair of shoes on sale, or the latest video game for your PS4, it might be a good idea for you to stay away from shops all together. Take a break from the mall, and hit the beach, go for a hike, or call some friends for a picnic instead. The fresh air will do you (and your wallet) some good.
If you've got this saving thing down, maybe it's time to invest in the stock market
6. Cheap thrills
Living on a budget doesn’t mean you have to live a completely dull life. There are many ways to have fun without spending a lot of money. You can invite your friends over for a games night, or organise a movie marathon night at your house. And instead of ordering takeaways, or going out for food, you can get creative by gathering what ingredients you have in your kitchen, and cooking a meal for your mates. You can even keep the leftovers for lunch the next day.
7. Reward yourself
If you manage to stay under your budget each week or each month, you can use some of your leftover money to buy yourself a little treat. Not only do you deserve it, but doing this regularly will give you an incentive to stick to your budget. Stay strong!
This article was curated by Young Post.
This article was curated by Young Post.
