Many people struggle to handle their finances effectively. Sometimes this can lead families to dire situations, bankruptcy and potentially losing their homes. Financial instability can also be linked to anxiety and depression in many people and is known to wreak havoc upon relationships. The good news is that there are simple money management techniques that can help anyone reclaim control over their money.
Having The Right Mindset
This is probably the hardest of the money management tips to start with. The fact is that you have to want to care about your money to be able to manage it well. Your money cannot work for you unless you make it do what you want. You need to set clear goals for your finances and follow through with them, however you also need to be reasonable about what those goals should be. Understand that there is no shortcut or instant success, and that even people who seem to have everything have certainly made sacrifices to get the things that were most important to them.
Having the proper mindset before you begin budgeting is the only way you will stay on track and truly reform your money management techniques. There are a number of inspirational books out there from personal finance gurus who can help you get your head in the game.
Top Money Management Books:
- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness
- Living Well, Spending Less: 12 Secrets of the Good Life
- The One Week Budget: Learn to Create Your Money Management System in 7 Days or Less!
Building a Toolbox – Using Apps To Build Financial Freedom
Once you are ready to take on the challenge of overhauling your finances it is time for the next of the major money management tips: having the right tools. The Wallet and various money management apps are both available to help you track your transactions and see where you are spending the most money. Mint.com also allows you to import information from your checking accounts to show you where all of your money is going and help you reduce waste.
Level Money is another app that actually syncs with your bank and credit card accounts, takes your bills into consideration and tells you how much you can afford to spend in any given day, week or month. This may help you come in under budget.
Mint Bills is a similar app that also tracks your bill due dates and sends you alerts when you are getting close to reaching the limits on your credit cards or overdrafting your checking account, helping you avoid costly banking fees.
Once you have taken the necessary steps to improve your money management techniques, it is time to see how well you are doing. Smart About Money’s worksheets can help you set your goals and keep track of how you are doing over time. They will help you plan for emergencies, create a timeline for paying off debt and more. As you hit major milestones, remember to reward yourself for a job well done!
Having healthy finances is all about making up your mind to take care of your money well. There is no easy way to gain financial peace, but if you start by deciding that you are going to do everything you can to stay financially fit you will already be halfway there. Luckily, there are tons of new apps and programs that have been designed to help you visualize and track your money closer than ever before.
You can use these tools along with worksheets to help you write down and keep your goals. Once you have taken these steps you will start to see results almost instantly and have greater confidence that your money will be there when you need it.