wealth management

1 August 2021

Steps to Managing Money

It is not uncommon to hear people say they are just bad with money. However, this supposes that other people are born naturally good with money. We believe that money management is a skill that everyone can learn and in this post we will discuss the steps you need to take in order to become better at it.

1. Build a Budget

Budgeting remains the foundation of money management. A budget serves as a benchmark to compare your actual income and expenditure with in order to make the necessary changes to ensure financial success. You can easily do this with a Google Sheets spreadsheet that allows you to view and edit to the budget across different devices as long as you have internet access.

2. Save First

Assuming your budget shows a surplus, you need to set up a standing order at the bank to save some of that surplus first. That will give you much more flexibility in spending for the rest of the month.

3. Track your Expenses with a Free Mobile App

There are many free mobile apps on both Android and iOS which you can use to track your expenses. Examples include Spendee, Expensify and Blue Coins. Consistently tracking your expenses will help you make decisions about what to prioritise and what to eliminate.

4. Ensure you’re getting the Best Deals

Taking some time to do price comparisons will help you know whether you are paying too much for some items so that you can switch to alternative providers. Also, doing some research can let you know whether you are earning competitive returns on your investments.

5. Be Proactive with Maintenance

Waiting until your car, apartment or house requires major work is one sure way to be overwhelmed by an unplanned expense. Be sure to schedule regular maintenance to avoid such an occurrence.

6. Take Advantage of Free Money Management Resources

There are several money management tips that are free and available online through blogs, podcasts and video sharing websites. A good example is IC’s Knowledge Centre. We provide you with extensive understanding of personal finance and investing that will teach you the money management skills you need to run your affairs.

As with all other skills, money management takes time and practice to master. You will not be perfect from the start, however if you follow these steps you will see a significant improvement in your money management and you will eventually develop ways to get even better at it. Thank you for reading.