7 Tips That Will Help You Manage Your Money

Many people don’t think about whether they can afford to go to the cinema or an expensive restaurant every time they want. If you often spend a significant amount of money and then have to save on everything, it’s hight time to change your way of thinking. The reality is that you will never have enough money for everything but you can learn how to spend them wisely. In this article, we gathered seven tips that will help you manage your money.

1. Control your expenses

It is quite easy to control the money you spend. At the beginning of the month, make a list of exact (fixed) expenses for the month like:

• Utility bills

• Internet

• Transportation money

• Lunch at work,

• Monthly loan payment

Add the most necessary expenses such as urgent purchases (clothing, equipment), a trip to the dentist, birthdays of friends and relatives to this list.

Subtract the amount of these expenses from your monthly income, divide the resulting amount into two equal parts. With the first part, you can afford to spend on entertainment and goodies. Set aside the second part. Thus, you can save on unnecessary purchases and save a certain amount. If it seems difficult to you, you can consult an accountant.

2. Duty is your first enemy

Try to repay all debts and not borrow money at all. Debt can psychologically press on you. You will always think that you owe someone money. Borrow only in case of an emergency. If you want to buy a new phone, don’t rush to borrow money. It is better to save money for such a purchase.

3. Don’t overpay

If you need anything, don't look at brands. Many famous brands’ goods cost more than similar goods from other manufacturers. In this case, you pay not only for the goods but also for the brand.

4. Choose quality

The cheapest option is not always the best. What is the point of buying a cheap pair of shoes if you have to buy a new one after a month? Maybe it's better to pay a bit more and buy something really high-quality? Such a thing may serve you for several years.

5. Don’t look at others

Often we want a new technique or clothes just because our acquaintances/friends have already acquired one. The desire to surpass others redirect to work, there this desire will definitely come in handy.

6. Don’t buy what you actually don’t need

If you're not sure if you need the purchase, ask yourself these few questions. If you did not answer “Yes” to everything, then you should consider whether you need extra spending.

1. Will you use this purchase regularly? 

Make sure that you drink all this milk before it goes bad. Look at the calendar, will you wear this jacket more than 1 time?

2. Do I have everything to use this? 

Many products require additional devices. Make sure you have everything so you can use your purchase. Perhaps you don’t need this super-pan with 15 buttons if you don’t know how to cook.

3. Will this thing change my life for the better? 

This tricky question will help get rid of spending on bad habits, such as cigarettes and alcohol. They greatly affect your spending, although you can do perfectly without them.

7. Cut food waste

Tell me honestly, if you knew that you would throw this potato into the trash, would you buy it? Probably not. As statistics show, about 20 percent of all purchased goods and resources are thrown into the trash. Before you go shopping, write down everything you need. If possible, consider what you will cook before you go to the store. If you will note what foods you usually don’t eat and throw away, this will help you reduce your spendings by the amount of these items.