A very good inflow to your bank account may not lead you to achieve what you have been trying to if you fail to manage all your finances properly.
A handsome salary will not suffice when you have zero levels of inclination towards cleverly maintaining your wealth. So, here are 100 tips for financial management that would not restrain you from spending money, keeping in mind the budget that you set.
Expert’s tips for Financial Management
1) Make a chart of the due dates of the different taxes that you need to pay. You should do this so that you are not penalized for any delays.
2) Put reminders on your phone about the installments that you need to pay. If you miss any installment then you may later need to pay some compensation. You may even need to pay higher interest on the subsequent payments.
3) Check your credit statements regularly without fail. You need to keep track of these statements for a better credit score. Once you have a better credit score, you are in the good books of the banks and you will get loans easily.
4) Check the interest rates before opting for a loan. You may anticipate a fall in the interest rates and can choose to opt for the loan later. In such a case, you will be better off.
5) Repay the loan that has the highest interest first. It is always best to finish a task that is more burdensome. Also, your confidence level will be boosted if you are done with the big ones first.
6) Always choose saving schemes at banks that offer the highest rate of interest. It is always best to go for the higher paying alternative. If you are receiving greater interest in a different scheme, then you are also earning more from your interests!
7) Always be updated about the prevailing interest rates. This is because if you plan to start a fixed deposit or if you want to opt for a loan, having the knowledge about the prevailing interest rates will enable you to decide the optimum level.
8) Always keep track of the debts that you have. Once you have a track of all the outstanding debts of yours, you will be able to decide better about taking any new loan. Also, once you have a track of the loans, you will stay secured from scams.
9) Be aware of your assets without failing. Every asset counts, irrespective of its size. Have a good knowledge of all the assets that you have.
10) Always set a budget before you think of spending your money. Once you have a constraint, you have a better knowledge about how to use your money and where exactly to spend it.
11) Try not to spend money on things that you can do by yourself. If you know that you can cook, then why spend money on fast foods? Similarly, if you can make something on your own, do not spend money to purchase it.
12) Always check your transactions at the end of the day minutely. This will enable you to monitor your expenditure in detail. You can use the balance that you have at the end of the day for the expenses of the next day.
13) Try to cut on expenses that are not a necessity for you or your family. Always try to spend money on the things that are necessities for your family. Do not spend the money on wasteful items or to impress others.
14) Never spend money to impress others. At the end of the day, you and your family will take care of each other. Spend money on the needs, not to flaunt in front of others.
15) Try to make a blueprint about the expenses you need to make on the next day. Once you set a limit on your expenditure, you will start saving up money. Your spending habits will also improve.
16) Always try to save 15% of your income regularly without fail for emergency purposes. Most of the experts suggest saving around 15-20% of your earnings. This small part will add up to be a significant amount later.
17) Make a plan before making transactions involving huge amounts of funds. Always ask yourself whether the purchase is worth the money. Think of the usefulness and the returns out of the transaction.
18) Always make a cost-benefit analysis before any transaction. Always think of the returns that you will get out of your purchase. Think about the long run and ask yourself whether the transaction is mandatory.
19) Always be positive when it comes to repayment of loans. Whenever you are repaying your debts, your burden is decreasing.
20) Always be happy with what you have got. It is always better to have more but be satisfied with whatever you have. This will prevent you from wasteful expenditure.
21) Never spend money trying to imitate others. The financial condition of the person whom you are imitating may be completely different from yours. So, imitating them on monetary grounds is foolishness!
22) Always try to negotiate with your employer for increased opportunities. If you can negotiate with your employer for more perks, then never leave the chance.
23) Give yourself some rest but never sit idle. Try to utilize all the time that you get. Enjoy your family time or go out with friends, but never sit idle and lose the opportunities to earn.
24) Start paying off the smaller loans when you have several loans to repay. When you already have cleared the smaller debts then you will be more confident about repaying the bigger debts. Also, it is a good choice to not ignore smaller debts.
25) Try to avoid co-signing loans even if your close ones ask to do so. You would never really know if that person would be able to repay the loan or not and you would be needed to repay it in case he fails. It is therefore better to avoid co-signing.
26) Even if you co-sign a loan, first check the capability of the borrower to repay the loan. It may so happen that the person who is asking you to co-sign is a dear one to you. In that case, co-sign only after you are sure about that person’s capability.
27) If you are a student, apply for all the scholarships whose eligibility criteria are fulfilled by you. If you get the scholarship then you will have to spend a lot less.
28) Try not to take loans from local moneylenders. They charge extremely high interests and their terms and conditions are extremely harsh.
29) Try to spend money on things from which you can gather experience rather than on expensive items. Spend money to watch a movie in a theatre or visit an amusement park. Antiques may not give you the joy that a cinema can give!
30) Never take any of your friends shopping along with you because they may push the expenditure. Your friends will always insist on buying more. Additionally, peer pressure can deviate your expenditure from what you had planned.
31) Never think twice before saving money for your post-retirement life. It is never too early to start saving.
32) Increase the percentage of your salary whenever there occurs a hike in it. Try to maintain a decent lifestyle and increasing your savings. It may help you to deal with unprecedented situations later.
33) Make sure that you have insurance for almost all the things and events in your life. Besides having health insurance, insurance for your house, cars, and other things is important.
34) Never fail to collect rents from your tenants no matter how good a relationship you share. This will keep your earnings intact.
35) Never spend money from your savings account and always use the checking account for fulfilling your expenses.
36) Always make the savings account and the checking account in two different banks.
37) Always keep aside the school fees and other necessary fees just after receiving your salary. You would never want to be a defaulter when it comes to the fees. To avoid consequences, keep the money separate so that you can pay the fees on time.
38) Try to improve your self-control so that your expenditure habits become optimum. Once you have control over your expenditure, you will see that your saving and financial management ability is rising.
39) Whenever making a transaction with a heavy amount, think of the returns from it. If the returns are not significant, choose not to make the transaction.
40) Try to earn something out of your hobbies and interests in your leisure period. Make use of your creativity for extra income.
41) Never try to cut short your expenses all at once. Doing so will never allow you to reduce your expenditure habits.
42) Try to trim your expenditure daily. You will never be satisfied with your expenditure if you try to cut it all at once.
43) While setting a target, be sure of it and try not to move away from it later. Control yourself from spending more than what you have targeted so that you save more.
44) Always consult a financial expert so that you pay lesser taxes. If you can manage everything which will ensure lower taxes, try to do it because paying taxes gives you no direct returns.
45) Spend your money only after setting aside the funds required for the payment of bills. When the bills are paid, half the burden is gone. You can also spend more freely in such situations.
46) Always invest your hard-earned money in schemes that are safe in terms of returns.
47) Make sure that your financial plan is customized according to your needs. If your plan is exactly about your lifestyle, you can manage your finances better.
48) Remember that you need to spend less than your earnings. This will ensure no building up of debts.
49) Break your monthly income into a daily one and spend keeping in mind your daily income. Once you do this, the proportion of your savings will be more.
50) Always set financial goals from the first day of your earning. The earlier you start saving, the more is your funds and the less burdensome your life is.
51) Do not forget to monitor your credit score if you are using a credit card. This will ensure easy borrowing from the bank.
52) Avoid bad debts as much as you can.
53) Never invest your money in something with zero returns. If you do not get more than what you put in, it is useless. You could rather use the money somewhere else.
54) Avoid mortgaging your last resorts such as your house. This will keep you moving when you have made huge losses and your family will be safe.
55) Make sure that you have an emergency fund secured in a bank and you do not spend from it. Unprecedented events are always tough and it is better to have precautions for every imaginable situation.
56) Whenever you are spending, keep in mind the chances of unprecedented events. So, never think of cutting your savings only because everything is fine at present.
57) If you are capable of earning from multiple sources, do it without any delay. Multiple sources of income mean higher income. Make use of this opportunity if you have it.
58) It is recommended that you learn the basics of investing. When the basics are clear, you know better about the returns and profitability.
59) Never invest in stocks by looking at people who made huge profits. Since investments in stocks are extremely uncertain in terms of returns, a person making a profit does not ensure that you will make profits too.
60) If you are investing in stocks, make in-depth research lucidly. Stocks and shares are very high-yielding yet very uncertain investment options. Invest only after you know everything about the price behavior.
61) If you have the habit of borrowing, reduce it. Whenever you borrow smaller amounts due to lack of cash or any other reason, you may forget it later. Such amounts can add up to be a big amount.
62) Don’t invest money in schemes that promise huge returns in extremely short periods. These schemes may be potential scams!
63) Always read the terms and conditions of insurances properly before you buy one. It is always best to be completely aware of the terms and conditions of the insurance that you buy. It will help you decide whether it is worth the purchase.
64) Do not neglect even smaller amounts that you need to repay. These small amounts may add up to become a huge amount which may be difficult for you to pay at once.
65) Always keep the copies of your financial documents prepared. In case of any discrepancy from either of the sides, you will be able to produce the documents and will be safe.
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Business, marketing, and blogging – these three words describe me the best. I am the founder of Burban Branding and Media, and a self-taught marketer with 10 years of experience. My passion lies in helping startups enhance their business through marketing, HR, leadership, and finance. I am on a mission to assist businesses in achieving their goals.