You need to manage your finances efficiently to improve the quality of your life. Implement these five hacks as part of your money management strategies.
Do you find yourself coming on payday each week and are just about out of money?
Living from paycheck to paycheck is stressful. But if you feel like you don’t have a choice in the matter, it may be that you actually need some money management strategies.
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There are plenty of them to be had, but we’ll take a look at five here to get you started.
- Track Your Spending
It’s easy to spend a little here and a little there and think nothing of it. But if you start to track your spending, you might be surprised how much you could be saving.
Begin by taking a look at your spending last month. Grab your pay stubs to determine how much you made. If you don’t have pay stubs handy, you can create free check stubs.
Then, go over all of your credit card statements, bank statements (including ATM withdrawals), housing and utility bills, and electronic payment records such as PayPal or Venmo.
Which expenses are needs and which are wants? For example, you need electricity. You don’t need that $4 latte every day.
Once you start to see how much of your money is going toward wants, you can begin to scale those back.
- Do Some Moonlighting
Consider a side hustle. This is anything you do to make money outside of your full-time job.
Maybe you do hand embroidery for a handful of clients. Or perhaps you love animals and you make a little extra cash watching cats or dogs while their owners are out of town.
Whatever your side hustle, you want it to be something you enjoy that allows you to set your own fee and hours.
- Do Not Turn Down Free Money
We’re not saying people are coming up to you and offering you cash. But does your employer offer 401(k) matching? If so, that’s free money and you need to take advantage of it.
Also, if your job offers special perks like discounted gym memberships, free lunches, or health insurance with all sorts of benefits, don’t let them go to waste. You could save some serious money this way.
- Expect Emergencies
This one is simple and straightforward.
Life has a way of throwing curveballs. When you live paycheck to paycheck, it doesn’t allow you to deal with emergency situations such as a medical emergency or losing your job.
The rule of thumb is to have at least three months’ worth of expenses in your savings. Because you never know what the future holds.
- Get Cheaper Car Insurance
It’s always smart to do comparison shopping when it comes to auto insurance. You could be paying a lot less with another company.
Also, stay aware of your coverage. You may not need as much as what you currently have. For example, if you don’t drive a lot, you could get away with a pay-per-mile option that could save you a lot of money.
Start Saving with Money Management Strategies
Using the above money management strategies is a great way to start handling your finances and saving money. They’re not that difficult and could make a considerable difference in how you handle your finances.
If you like this article and would like to see some more helpful tips and articles, keep checking back with our Finances blog.