Crypto Investing
7 Dec 2020

7 Simple Money Management Tips to Better Manage Your Money

Nisha Ramesh

Work, family, friends…we have so many things to take care of, where does one have the time to manage money once it reaches the account?

Also, math is boring, right?

But don’t worry, you need not be a maths expert or a numbers person to manage your finances. It just needs basic addition and subtraction.

Life becomes a lot easier if you have your finances sorted.

Being good with money is more than just earning a lump sum salary. Your money managing skills impact everything in your life, from your credit score to the amount of debt piled up in your balance sheet. 

Are you someone who lives from paycheck to paycheck or/and finds that keeping your finances is a struggle each day?

Here are some simple money management tips to make your life easier.

1. Define Your Goals

Goals add meaning to life, and the same applies to finance too.

Many people think money management starts when you start earning a lot of money. This is not true; the first step to financial success is to make a list of your goals and define them clearly. 

Each of us may have different goals.

For example, parents may invest in paying for their child’s college fee, or a couple who are engaged would want to invest for a dream honeymoon.

These goals may be short term or long term. But defining your goals ahead of time gives you the edge of making decisions that suit these goals, and there are more chances that you will achieve them.

2. Plan & Budget

Planning can be fun, but making a budget and sticking to it is what matters the most.

Most times, we make big plans and end up not executing them. A goal that goes unexecuted is just a dream. So, start small, make plans that you know you are capable of achieving in the future. 

Also, it is vital to have a budget for your finances. Note down all your expenses, and see where you can cut down on it and save more. Budgets can be made monthly or weekly at your convenience. 

Also, a pro tip from the infamous investor Warren Buffett is “Save before you spend.” This way, you don’t have to bother about the details of budgeting. 

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3. Save For Short-Term

The Corona pandemic taught us the need to have reserve cash more than ever.

Make sure your plans and budget include a percentage set aside as an emergency fund. It is always good to keep at least 3-6 months’ worth of money for essentials in a liquid account so that you don’t have to struggle in times of turmoil. 

Suppose you are looking to make more significant purchases such as electronics, cars, etc., set up a separate savings fund for that purpose.

You can also invest that amount in short term investments to let it grow further.

It is essential to include your short term goals in your financial plans. Remember that vacations and new purchases can be thoroughly cherished if you pay for it upfront rather than mounting up debt. 

4. Invest in Long-Term 

Financial freedom is the most sought after goal in today’s world. Many of us dream of retiring early and pursuing our passions.

This dream can become a reality if you focus on the long run and invest for the long term.

While investing in the long term, you may want to consider other assets apart from the standard savings accounts and fixed income.

Investing in assets such as stocks, cryptocurrencies, mutual funds, etc., may enable you to achieve your goals faster, but you need to have a long-term horizon for it.

Consider investing in growth assets and let the power of compounding multiply your wealth. To know the significance of investing and where you can invest in the long run, read this.

5. Make Investing A Habit

Not having enough money to invest is a very common excuse.

But, investing need not be considered as a one-time thing. 

Try to make it a habit of regularly adding money towards your goals. Set aside a fixed amount every month or week towards a specific investment.

“Systematic investing will pay off ultimately, provided that it is adhered to conscientiously and courageously under all market conditions.” – Ben Graham

Systematic investments mean investing periodically and regularly. It enables you to build your long term wealth, regardless of the market conditions, irrespective of whichever asset class you are investing in.

6. Avoid Excess Credit

All the festive sales and no-cost EMI options offered by e-commerce platforms can tempt you into buying things that you may not need and that too on a debt.

Credit cards may come in handy until the day arrives when you have maxed out on it and need to borrow further to pay it off. 

So try to use your credit wisely and keep an eye on your credit score. Your current debt has to be way less than your borrowing limit. 

Most importantly, make sure not to spend beyond your power.

7. Don’t Stop Learning

Managing your finances can be a tasking job, but it is essential for life, which is why you need to keep your game face on and regularly update yourself on finances.

You don’t need to know it all. But keeping yourself abreast about what is happening in the financial world and apply it in practical life to achieve success. 

Follow KuberVerse and learn about Bitcoin, Cryptocurrencies, and general investment tactics like the ones I am sharing with you now.

Bottom Line

Practice and patience are necessary for you to become a money expert.

It may be challenging to push yourself into the habit of planning and spending mindfully at the start. Once it becomes a part of your everyday life, it will be a simple task and a smooth financial journey.

[su_note] KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. [/su_note]

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

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Nisha Ramesh

Content Writer

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