For your financial stability: 12 ways you can manage your money better than before
A lot of us learn how to become financially independent by trial and error. The road to financial stability starts with finding a stable source of income and ends in accumulating an adequate retirement fund, the earlier the better. Along the way, we build and adapt a money management system that gets us from A to B on the smoothest route possible.
As a personal finance app, gini wants to make good money management accessible and easy. 5
1. Prioritize your spending into needs and wants
If you want everything – the newest iPhone, a Netflix subscription, dairy-free yogurt, new shoes, etc. – you’re going to have a hard time affording it all. Figure out what you actually need now and cut out the rest. All of the unspent dollars will count towards the occasional splurge for something that you really want and deserve.
2. Use your credit cards for their rewards, not to stretch your paycheck
Credit cards should never be an alternative for cash that you don’t have. Find a card with good rewards and use it only towards accumulating points or cash back to get more for the money you have on hand to spend.
3. Pay your bills on time or better yet, automate your payments
Poor time management is a silly reason to have to pay extra in fees. Set up automatic billing or calendar reminders to make sure you’re not leaking money through these gaps.
4. Grow your accounts a little each month
With personal finance app, you can see what your net income is each month throughout all your accounts. Aim for a positive net value every time and you’ve already set yourself up on the right track for growth.
5. Spread your investments across different destinations
Everyone stresses on the importance of a savings account. But instead of putting everything into one location, spread it out among retirement schemes or stock portfolios to make your savings work for you instead.
6. Don’t measure your lifestyle by how much you spend
Does social media sometimes pressure you into living the life of a high spender? Bottomless mimosa brunches and new crossover sneakers don’t define your success or quality of life. If you’re perfectly happy with homemade pancakes and vintage hand-me-downs, you don’t need to go out and spend money to be like everyone else on your social feed.
7. Find a career that rewards your passion with fair benefits
We all want to work for our passions regardless of the hardships that might come with our career of choice. But if you’ve built up your skills to the point where you are a true asset to your job, you deserve to be compensated accordingly. Always negotiate for the fair value of your skill and dedication in order to achieve financial stability and job satisfaction at the same time.
8. Set aside a cash cushion that allows you to survive three months without another paycheck
Prepare for the worst by buying yourself three months of time to deal with life’s unexpected emergencies. You won’t regret having the backup fund if the time comes.
9. Give generously to charities or loved ones when you can
A small donation goes a long way and can help you feel better about your finances when you know you can afford to be generous. A sure sign of stability is being able to help those in need without monumentally impacting yourself in the process.
10. Know exactly where your money goes
Refresh your memory from time to time by referring to a money management app so there are no surprises on your monthly bank statement. When you categorize your spending by lifestyle habit or vendor, you get a clearer picture of where your income goes, helping you be more mindful of your daily spending.
11. Keep tabs on your budget and remember to start curbing expenses before it’s exceeded
All it takes is a quick glance at your expenditures to keep your spending in check. If you’ve set a budget for groceries or entertainment, you can know exactly when to slow down on the spending to stay within your goals for the month.
12. Seek advice when you need it
Financial advisors and online resources are always available when you need some extra guidance. Always make well-informed decisions when it comes to being an adult and be on the lookout for ways to improve or adapt your management habits to suit your needs.
If you’re ready to take the next step towards better money management, download gini today. Keep track of your progress with monthly reports and secure transaction syncing for stronger financial stability now.