Money is a source of security for everybody – there is no disputing that fact. Practically everything that anything to do with your life is directly linked to money. Your health, education, daily needs and future are all impacted by money. This is why it is an absolute must to master your finances.
Unfortunately, money smarts do not come naturally. For most people, learning to make their money work for them takes decades of trial and error. But, if you wish to be better at managing your finances so you can feel more secure with your life, there are changes you can make now to achieve this objective.
Discussed below are seven changes you can make now to improve your finances. Financial experts as well as people who were once like you seeking ways to be better with their money have proven these effective.
1. Be conscientious in paying off debt.
Becoming debt-free sooner than later provides a lot of benefits and the most important one is freedom from constant worries about the future.
As much as possible, do not delay in paying debt because they generate interest over time, which basically means you are paying more than the money you originally owe.
Also, when you commit to the idea of paying off a debt completely faster, you learn that there are a variety of ways to go on a cash diet to be able to direct money for payments. A few popular strategies for limiting cash outflow are opting to shop online, using more coupons, giving up coffee, and menu planning.
2. Consider changing your credit card.
Study the different bank loan and credit card offers out there and compare them to each other and the one you are currently using.
If you can find a credit card that has a lower interest rate (or zero interest rate) and fees, plus, impressive rebates and rewards, why not use that one instead?
3. Open another savings account.
You never know what can happen with your current savings account these days. But, if you have another one that you also regularly deposit money into, should one get wiped out, you will not be completely financially sucked up.
4. Sign up for mobile alerts.
Among the truly helpful mobile banking services offered are SMS and email alerts for every transaction carried out using your account.
Aside from helping ensure all transactions are authorized, these will serve as reminders about your money activities as well as prompts for you to be more thoughtful about your cash outflow.
There’s nothing like frequent reminders to have you thinking more about how you are using your money.
5. Choose to pay in cash.
Paying in cash hurts because you actually see money leaving your hands and being taken by somebody else. Use this experience to discourage you from spending more than necessary.
6. Be loyal to brands to score freebies and discounts.
If you consistently purchase the same items from the same store, take advantage of loyalty programs. These programs are basically lock-in strategies that can eventually save you a good amount of money.
For example, skincare brands provide loyal customers multiple samples for every purchase. Those samples can save you money because you will not have to buy items you need for a certain period of time.
Loyalty programs also offer discounts, and the wonderful thing about them is that your discounts as a loyal buyer can be added to discounts from store sales and coupons.
7. Identify all your excesses and cut them out.
Look around your home and go through your receipts – study your possessions and purchases. Think deeply if all of them are necessary.
That hibachi in the kitchen that you are using more as a stand for your spices, would it be better to just sell it since you do not use it at all? How about your daily tall Starbucks Americano that you spend AED 15.75 on before heading to the office? Can’t you just make your own coffee to bring to work, or brew some in your office pantry?
Doing away with these excesses can save you a serious amount of money in a single year. At the same time, it can make way for investments or purchases that can benefit your life much better.
Getting better with money management is not that difficult. You just have to think of it as a continuous learning process that hones your skills over time.
As you implement more financial management strategies, you will actually enjoy being in control. You will find that you stress less about the uncertainty of the future. Plus, you are free from the shame and guilt of having more than you need and use that compromise in the life ahead of you.