10 Tips For Managing Your Money – Money Management Tips & Advice

Posted on 06 May 2011

Money Management

No matter whether you’re rolling in $500K working from home, or just starting to make money, there are always fears over money and how to manage it. But, managing your money the right way is an extremely important factor in achieving success in business and in life. Check out these Top 10 Money Management Tips that should help you figure out how to make it through life without the fear of green getting in your way.

Tip 1: Budget – I just can’t stress this enough. At the start of every month, sit down and figure out how much money you’re going to have coming in and where you expect to see it go. Account for every single penny. There’s no such thing as being too thorough when you’re talking about your own money. You worked hard for it, and you should know where every last bit of it is going.

Tip 2: Shop Smarter – You’d be surprised just how much you can save on a daily basis just by either looking online for coupons or finding your Sunday newspaper. Sure, the newspaper is a bit of an old school thought, but there are hundreds of dollars of coupons in there for everyday items that you need like milk, meats, vegetables, and the sorts. Every last $0.20 off coupon adds up, especially when you’re talking about a newspaper that probably only costs $1.00 on Sundays in your area.

Tip 3: Save For a Large Goal – Want a new car? Thinking about a vacation? Is there remodeling in your future? These aren’t things that you can just take out of your budget on a normal month, so you’re going to have to save. Even if you don’t have that goal in mind, it’s always nice to have that fund set aside for that next big thing that comes up. C’mon, you can find $10 per week out of your paycheck to set aside for a rainy day, right?

Tip 4: Make Sure You Always Have Money Available – I don’t care if you’re in credit card debt up to your eyeballs or are eight times under water in your mortgage. Do not ever leave yourself without liquid funds available. Things happen in life. Plumbers are needed, cars break down, etc. Keep at least $1,000 handy in a savings account or in cold hard cash floating around so you always have your emergency fund.

Tip 5: Don’t Be Afraid To Use Low Interest Rates To Your Benefit – I know that the average American is dealing with a ton of debt right now, but at this point, that might not be such a bad thing. Go down to your local credit bureau (not banks, notice) and try to consolidate your debt. Mortgage rates are at an all-time low, and many companies that are in the financing business are offering low interest or no interest financing on purchases like jewelry stores, car dealerships, etc. Any time you can borrow money at low interest or no interest, you make sure that you do it, as you can always make better use out of the money than others can.

Tip 6: Think About CDs and Savings Accounts – Sure, CD rates are laughable right now, but even if you’re only getting 1% on your money, just think about what that can mean. A $10,000 CD invested at 1% for six months will yield you just over $50 for not doing a thing. Yes, rates can always go higher, and they will in due time, but even at just 1%, that’s 1% more than you would’ve been making just by keeping your money in your checking account.

Tip 7: Invest in Your Future – Working for a company that offers a 401-k with a matching policy? You’d better find out! Most companies with more than a handful of employees offer retirement benefits. I know that retirement is the last thing on the minds of a lot of 20 and 30 year olds right now, but if you can take 6% of your paycheck per week (or however often you get paid) and invest it in your future, your company could match half of that for you. We’ll say you make $40K per year. If you take 6% of your paycheck, you end up with $2,400 in your retirement account. The money isn’t taxed to you until you draw upon it several years down the line (meaning you’re saving roughly $500 in taxes right off the top), and your employer will end up contributing $1,200 on your behalf for the year. You let me know where you can turn $2,400 into $3,600 in a year and not have to pay taxes on it!

Tip 8: Prioritize – Okay, so money is a little tight and you’re not really thinking about anything other than where your next tank of gas is coming from. Do you really need to get your nails done this month? Do you really need to get that cup of coffee in the morning from Starbucks? Do you really need to eat lunch out with your co-workers three times per week? You’d be surprised how much money you can save just by cutting the junk out that you don’t need.

Tip 9: Get Rid of Your Gas Guzzler – I know that you need a car to get to and from work, school, and wherever else it is that you have to go, but these gas guzzling cars are absolutely a joke right now. The price of gas is way too high to have a car that gets less than 30 miles to the gallon, and you can often get quality cars like that for a significantly cheaper price than one of these trucks or SUVs with huge engines. Even if it means having to walk or ride a bike or carpool to wherever you’re going instead of eating through all of that gas, it’s certainly going to make a big time difference in your wallet.

Tip 10: Remember the Good Old Days – This really might be the most important tip, not just for saving money, but for a solid life experience as well. Back in the day before there was the internet, theme parks, or even televisions, families took time to spend together. Instead of going out to eat or taking in the game or whatever it is that your family likes to do, why not try some cost cutting activities. Bust out the deck of cards. Open up the closet full of board games that you haven’t played in years. Go back and look at old photos and videos from the good times in life. Not only will it act as a great bonding moment for you and your family, but doing that once per month can easily put another $100 in your pocket.