Money is not everything, but it definitely makes the world go round. Without it, you won’t be able to buy essential things in life, travel, celebrate your birthday or anniversary, and many more that you want to do. However, money does not grow on trees either. It is something that you work for so it is only right that you spend it wisely.
Highlighted below are 7 money tips that everyone should know, and will help you ensure that you will never go broke.
Earn More Than You Spend
This is a no-brainer. Instead of getting ahead in life, you will only bury yourself in debts if you spend more than you earn. What you need to do is the other way around. Try to boost your earnings as much as you can so you will have more freedom. If your pay from your full-time job is not enough to cover your monthly expenses, then look for a side hustle. This right here will keep you solvent and then some.
Automate Your Savings
Saving money is easier said than done. Before you get your pay, you promise yourself to set aside some money. But once you get paid, you forget all about the savings and go on a shopping spree. The next thing you know, you’re broke and the next payday is still three weeks away. I know we’ve all been in this scenario at some point.
So to ensure that you will be able to ave up, automate your savings. You can do this by setting up an automatic transfer from your checking account to your savings on a certain day of the month (most likely your payday).
Avoid Borrowing Money
It is not bad to borrow money or take a loan out. But before you do so, step back and ask yourself first what you need the cash for. Is it for an emergency? If so, then it is fine as long as you know that you can pay it on time. But, if you are borrowing cash just because you want to buy a new purse or a pair of stilettos, then you better think twice.
Prioritize the Essentials
When talking about spending, you must know how to identify the difference between your ‘needs’ and ‘wants’. The former is something that you need to survive while the latter is just luxury items. It is not bad to have ‘wants’, but make sure that you can afford them without compromising the essentials.
Track Your Spending
After you get paid, or even before that day, you should already have a budget. And as you go through the days of the month, try to track every expense that you’ll have. This way, you will have a better idea of where exactly your money is going.
Credit cards and debit cards are very popular these days. While it is convenient to utilize them when making a purchase or paying for services, it is hard to track the amount of money that you are spending. Whereas if you use cash, it will be so much easier for you to say no to unnecessary things.
Monitor Your Accounts
Almost all of us are now using online banking, which is quite beneficial. However, this also gave an idea for unscrupulous individuals to take advantage of us. With this in mind, you should be extra careful when using such online services. Monitor your account regularly and keep your logins safe.