If you’re not happy with the savings in your bank account then the answer is probably: “yes, you could be doing more to manage your money”. You might earn a decent income and cover your costs, but that doesn’t necessarily mean you’re managing your finances as effectively as possible.
Update your budget regularly
The best way to manage your money is to regularly return to your budget. And if you don’t have a budget then you definitely need to create one. Budgeting is a smart way to keep track of your expenditures and income. Otherwise, it’s very easy to overspend. You might know how much you’re earning, but can you mentally keep track of every little expense you face on a monthly basis? Write up a proper budget for yourself and take into account utilities, rent, food, petrol, and other necessary bills. That way, you’ll know how much money you have to set aside for basic costs; you’ll also know how much money you have remaining for non-essential costs. You need funds for those little costs like the occasional snack from the vending machine at work, the parking charge for the weekend trip to town, and so on.
It’s important to update this budget regularly to account for changes in your life. You might change your phone plan, your car insurance could become costlier, or your energy bills might increase. You need to track fluctuations in your monthly expenditures so that you know how much disposable income you have on a regular basis. That way, you’ll be able to stop yourself from living beyond your means. Of course, disposable income isn’t necessarily “spending money”. As we’ll discuss in this article, there are much smarter ways to save and invest those funds. You just need to work out what you can afford. And if you want to increase your available “excess cash” then the following point might help.
Seek good credit
Not all debt is bad, and credit cards shouldn’t always be avoided. Building up a sturdy credit history can actually help to improve your finances. Good credit proves that you can manage your debt. It proves that you can borrow money and pay it back promptly. That’s what lenders want to see when giving out loans to people, so you should be seeking ways to improve your credit score if you want to manage your money more effectively in the future. You might want to check out Bonsai Finance if you have a bad credit rating and want a loan. Breaking the cycle could give you an opportunity to improve your credit by paying back a loan on time. This will make it easier for you to borrow money in the future, and that’ll definitely help you and your family in a financial sense.
Save money on each payday
You could be doing more to manage your money by setting aside bigger portions of your earnings more regularly. It’s about giving you and your family a safety net for the future. You can use financial apps to help manage this on your phone, making sure your finances are in the palm of your hand.