We all earn money and we all love to spend what we earn. Somehow, the money seems to slip away as easily as it comes. Spending wisely is a trait that can be learned. To be able to manage money, a certain amount of goal setting and planning is required. Money management is not about hoarding money but more about channeling money to ensure you have enough to spend for your needs. Crown Money Mortgage Brokers specialises in debt and money management and focus is on educating customers to use their mortgages as a total wealth and savings management solution.
If you can get yourself to start an emergency fund, which is a fund as the the name suggests – for emergencies only and start to put away a certain amount of money every month, you get a good amount of money as a nest egg. This leaves you ore free to spend the rest of your earning on stuff you need for today, as the tomorrow is taken care of by the emergency fund. Take care that you do not dig into this fund. A sudden need to but a really
sought after item is not an emergency. Consider this more like a retirement fund. Once the money has been added, it should be forgotten about.
The next step managing money is to assess your average spend based on your earnings. See what is left with you as spending money and manage within the amount available. Do not add to your debt or credit bills by making more purchases. If you have spent a little too much on the card, don’t kill yourself over it. Just go easy the next month. A few additional home-cooked meals will not kill you. In-fact, it may get you started on the path to good health.
Try and keep a small amount for yourself as indulgence no mater what your money budget is. This keeps you on the management path. If you constantly try and save and not spend, you will not last long. Allow yourself an occasional spend – this will help you identify what you really want and also to say no for things you don’t really need or want.