17 Money Management Tips to Know

Money management tips refers to the process of planning and tracking how you spend, save, and invest your money.Here are 17 ways to manage money wisely :-1.The 24 Hour Rule
2.The 72 -rule for expenditure

3.30 days saving challenge
4.The 1% Expenses Cute rule
5.The cash only weekend rule
6.The 30 days rule
7.The 3-days grocery rule
8.The 80-20 investment rule
9.The 5- years rule
10.Automate your saving
11.Use Upi Instead of credits card
12.Use Credit Cards only if you have 100% money to pay back
13.Make a shopping list
14.Emergency Fund
15.Life Insurance Plan
16.Health Insurance
17.Prefer renting over buying

1.The 24 Hour Rule:-

whenever you see a discount or a sale you feel like buying it right away,you have to wait for 24 hours only 24 hours after 24 hours if the impulse is still there then you know
what buy it from your budget of desire.But mostly after 24 hours you realize that we got carried away.This is not necessary and a little too much for desire.

2.The 72 -rule for expenditure:-

It is a very intersting rules.whenever we buy something we look at its total value but if i ask you
How much do you pay for your phone every day ?
How much do you pay for your shirt evrey day ?/
How much do you pay for your car every day ?
you might not be able to calculate that.This rules says before buying anything divide it by 72 this means it will be
used at least 72 times and then in your heads see that does that number look okay or not ? This is for those things which you do not use every day if something will be
used every day divide it by 730.Whic is 2 years,365×2 then look at your spend per day if that sounds reasonable that you are ready to pay /-100 for your phone everyday
then suddenly the /-73,000 phone makes sense but are you ready to pay /-200 OR not ? then that 1.5 lakh iphone 13 pro max vvt4 that may not make sense.there is
no such phone by the way.

3.30 days saving challenge:-

for a month all your non-essential expenses eating out,ordering in some random subscription cut them out for a month and then see what difference it makes in your life
most likely it won make a difference but you will end up saving a lot more money feel good about your money and also not spend it on random shit.

4.The 1% Expenses Cute rule:-

This rule mean every month whatever your expenses are particularly your desire and needs try to cut them down by 1% .So if you spend 1,000/-on your needs and desires.
1% of that means 10 /- try to spend 999/-next month now the reason why i say that there are limitation to this rule is that you will have to spend same money to live your
life.So beyond a certain point it can not continous but unitl you can follow this 1%rule follow it.It will keep you disciplined it will force you to think about things from where
you can cut down money without of course hampering your lifestyle and your well being and will help you save a lot more.

5.The cash only weekend rule:-

Cash only weekend rule say which is friday ,saturday ,or sunday weekend is usually saturday and sunday you just have to use cash .Now why will this work because when you physically make
a payment using money you realize how much money you are atually spending when you are spending money digitally virtually then you do not register in your mind that you have spent so much
money because you can spend it so cash makes it real in our subconsious.

6.The 30 days rule:-

It is a very brilliant pschological hack its called the 30 -days rule.whenever you want to buy something big do not buy stay back for 30 days and ask yourself after 30 days
is that thing still important to me ?most likely that answer would be no and that is how you actually resist if there is a sale ,buy stuff and instead you buy only those things
that you really needs.
6.prefer renting over buying
if you use something occasionally then do not buy it take it on rent everything is avilable on rent now a days expensive clothes are available on rent ,gadgets are available
on rent,vehicles are available on rent ,then if you are not a freequent users then please take it on rent you will save a lot of money .

7.The 3-days grocery rule:-

if you live on your own and buy groceries ,fruits ,vegetables or anything else then buy it every 3 days. do not it for a week why ?psychologically when you go shopping for a
week then you pick up more useless things that chewing gum,biscuits etc because you feel you have to plan for the whole weeks then you buy for 3 days then you tend to
pick up fresh things so you fresh you tend to pick up lesser things bacause it s only 3 days so in 3 days how many biscuits and chewin gum and maggi can you eat and
it also keeps you then healthy.

8.The 80-20 investment rule:-

what does it say if you invest 100/- then you will invest 80% of that in the long term passively.
what is passive investment ? where you do not have to see it every day you should actively manage 20%maximum.Because if you actively manage the most amount of money
then you will not only take stress you will also be at the risk of losing that money because you may start gambling with that money.not actual gambling but taking unnecessary
which you should not with your money.

9.The 5- years rule:-

Before you make any big expense like a car ,a house or anything else ask yourself that will purchase be vaild for you after 5 years or not ?and if not recosider that purchase
sometimes big expenses seem big in the moment they seem like a necessity but if you see it on a 5 – years horizon you realize that maybe this expense is not needed.

10.Automate your saving:-

Research has proved that whenever you have money in your bank account or in your hand you tend to spend it.So if you want to save money and want to invest it.Then you
have to automate those investment Money.How ?
Example :ask the employer to deduct EPF
Create SIPs
Whenever your entire salary arrives,open one more bank account and make an auto debit there.So that your investment amount gets paid from your main bank account
and whatever reminsns,you will run whole month in that.Whatever it takes for you to automate it,because if you cling on to motivation.Then you may not be able to save money.
Why to save ?To invest.

11.Use Upi Instead of credits card:-

Use UPI instead of credit cards.There are two reasons,
A.this money is yours,the money that the credit card gives you is not yours .it is a debt .So we think this money is ours,But we have to ultimately pay it.And that is not a smart way to do it.
B.whenever you use a credit card,a surcharge is chargef at many places about 1%,2% even 3% sometimes.why would you want to pay that money.when UPI is absolutely
free ?.

12.Use Credit Cards only if you have 100% money to pay back:-

Use credits but only when you have 100% money.credits cards using is not a bad thing,Three reason why cards are actually a good thing.
No.1 whenever you use a credit card you pay that amount after 30-45 days,means someone is legally giving you a months s interest- free loan.if your credit card spend is
too high by putting the same amount in a debt mutual fund you can earn a little interest.it would not be much but its free money,then why not ?
No.2 whenever you use a credit card then your credit rating improves according to your payments,so you will always make a full payment every month and that will enhance
your credit score.
No.3 For using every credit card you get something somewhere as free rewards ,free points then why not ?continue spending what you have to spend on instead of that
little more,not instead on top of that earn a little more rewards and points as well smart way of using your money.

13.Make a shopping list:-

whenever you go to buy something make a shopping list.even if you are buying online the shopping list keeps you disiplined.you do not want to be the one who will enter
a mall and then says lets buy this ,buy this then the folks at mall will also play on yours psychology.at counter will try to sell a few more things buy this chocolate ,buy that
maggi buy that chewing gum the money with which you came to spend and buy things on top of that you have bought five more things and have spent thousand more
not the smart way to do it.also online whenever you sit down to buy something make a shopping list for example amazon ,filfcart or myntra be it anywhere.

14.Emergency Fund:-

if your incomes stops then it takes care of your cost of living. This emergency fund atleast 6 months ideally 12 months and where to keep it ?
70% in an fd
20% in your bank account
10% in cash
so that ,god forbid whenever if you need money you can deploy this emergency fund.

15.Life Insurance Plan:-

something happens to you and your incomes stops or you die then your family should not be burdened with generating that incomes whatever your yearly salary is ideally
life insurance cover =20-25x of your annualy salary
for example:annual income =5,00,000
life insurance cover=25×5,00,000=1.25cr.

16.Health Insurance:-

so that if something happens to you or your family and it requires hospitalization then you should have to pay. If from your pocket the insurance company will pay it
for this health insurance for your parents and health insurance for you must be keep separete because your parents are old their health insurance will be expensive
and if you go along with them then for no reason your own insurance will be expensive.

17.Prefer renting over buying:-

if you use something occasionally then do not buy it take it on rent everything is avilable on rent now a days expensive clothes are available on rent ,gadgets are available
on rent,vehicles are available on rent ,then if you are not a freequent users then please take it on rent you will save a lot of money .

Frequently Asked Question

Conclusion

Money management tips refers to the process of planning and tracking how you spend, save, and invest your money.