10 Money Management Tips
Financial security does give peace of mind, and having it at the back of your mind that you can buy what you want, when you want can help you achieve this. It is also a great reason to save and invest.
These are 10 simple money management tips to boost financially security.
1. Create an inclusive budget – this should include how much you earn as income, plus the benefits, bonuses, benefits reimbursements and extra income sources. Run a comparative analysis to your expenses for the month to determine if you are running at a deficit or if you are comfortable.
2. Control spending by cutting day-to-day costs – your budget shows you where you spend more, so you can find ways to cut cost and save, i.e. cell phone or data bills, cable bills or by buying groceries in bulk and prepping meals to avoid eating out.
3. Remove unnecessary costs – prepare a listing of your recent bills and the days they are to be paid, to avoid penalty charges. You could use an app, and an alert system to keep you on track
4. How can you pay your debts with lower interests?
Settle debts with the highest interest rate before others.
- Always ensure to track your debts and their due dates on a monthly basis to ensure you pay off on time.
- Put information on all your debts in one place. This could be a bank account to allow you pay for all the different loans at once.
- You might need a financial counselor, to draft out proper payment plans. You can get free services through Family Assistance Program (EFAP)
- Document your goals to improve your savings by putting it on paper, drafting out steps to achieve this, then putting aside money each month to meet these goals.
- Don’t pay more in taxes. You can determine the tax bracket for you and your household, and deliver claims such as child care expenses, health care costs and benevolent contributions with the tax return going to the spouse taxed at a higher rate.
- Uses for Online Banking. Set up payment prompts and program upcoming bill payments. You can also review your expenditure.
- Have your office plans work for you. You get benefits from the office like group retirement plans, matching programs. You could also take advantage of tax reduction and some office expenditure like transport and health benefits.
- Start a retirement plan, as soon as you get employed. You can save with assured government sources like the Canada Pension Plan (CPP).
- You can work with a financial advisor, to gain a hold financial stress and improve financial security. You can also create a modified financial plan and prepare tactically for life’s economic mileposts