Tips on How to Manage Your Money
By Sharone Chebon
Imbibing healthy financial practices such as the management of money unlocks a lifetime of financial independence. Money management is a vital practice as it displays a complete picture of your financial situation which is necessary for your spending allocation. Moreover, it integrates the key financial disciplines for developing wealth accumulation, priorities, objectives, values, and risk tolerance.
Are you able to pay your bills, but find it difficult to set aside money? Of course, bills are important, but you must find a way to save and enjoy life too. The following tips will guide you on how to manage your money effectively.
Create a realistic monthly budget: Realistic budgeting draws you closer to making better financial decisions by helping you control your spending and tracking your expenses. Do you find it tough to stick to a personal budget? Well, the best budgeting tip to maintain your financial muscle Is to stick to your budget even when you start earning more money. This way you may be able to put more money into your long-term goals. In planning a budget, it is important to take a hard and close look at where you already spend. Analyzing whether there are expenses that you can cut back such as recurring unplanned purchases. It is best to understand what your needs are over what your wants are. To do more with your money, you need to know what you’re doing with it now.
Track your spending: Just by caring about your finances, you’re well ahead of the curve. Therefore, after you set up a budget, tracking expenses daily is essential to keeping you on that budget. If you stop tracking your money, you will not know when to stop spending. Monitoring your expenses throughout the month holds you accountable for your finances. This can be done through an app or software. Online Apps assist you to summarize your spending through graphs and charts that illustrate your spending habits.
Save for retirement: Sticking to your budget and tracking your finances is not enough, you need to make strides towards important saving goals. Having a dignified and fulfilled tomorrow requires you to secure your tomorrow today through saving for retirement.
Save for emergencies: If you can save your money now, one day it will save you. For instance, when you clearly understand the importance of health, especially after retirement, then you would want to consider insurance products such as the LIB Flexi Maisha Cover. It has life benefits that are payable in the event of death of the assured life from accidental illness or natural causes as well critical illness such as cancer, stroke, heart attack, renal failure, coronary artery surgery, and more.
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The writer is the Business Development Officer at Laser Insurance Brokers (LIB)