Money management tips for beginners

Most people talk about earning more money, however, not many people talk about how to effectively manage it. While creating wealth is essential, it is equally important to protect your funds and use them prudently. Your hard-earned money needs to be saved, invested, and spent judiciously in a systematic manner in order to ensure long-term stability and liquidity. This can be done through effective money management.Here are some ways to manage your money wisely:1.Don’t Spend more than you make
2.Save for Emergencies
3.Prioritize paying off high interest
4.The 80-20 investment rule
5.30 Days rule
6.30 Days rule

1.Don’t Spend more than you make:-

If you ‘re living paycheck to paycheck ava budget can help.To get started take a look at where and how you spend your money each month.
One way to stay on track with a budget is to follow the 50/30/20 rule that means that you spend 50% of your take home pay on essential costs like rent,mortage,food,car payments
childcare.From there use the next 30% on the things that are important to you spend cable or streaming plans,new clothing ,eating out .And finally the remaining 20% can be
used to pay debts or contribute towards savings.Budgeting is not a one size fits all activity.The 50/30/20 example may not work for everyone .

2.Save for Emergencies:-

When it comes to savings every little bit helps do what you can to set aside small amount from each paycheck into a separate emergency saving
account.You can not plan for emergencies but its reassuring to know that you have funds ready for the unexpected like a car accident ,a broken appliance,or even a lost cell
phone.Set aside to cover your family expenses for 3 to 6 months or to contribute 10% of your pay into saving.

3.Prioritize paying off high interest:-

Pay as much as possible high interest loans.It can be hard to save when you are in debt but it can be even harder if you are growing your
debt each month with high interest rates.Try your best to pay down balances as quickly as you can.Start by paying off your debt with the highest interest rate and always
make your monthly minimum payments on each credit account by doing this you will avoid paying late fees,and once you have paid all of you debts also avoid interest
charges.

4.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.

5.30 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.

6.30 Days rule:-

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.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

8.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.

Frequently Asked Question

Conclusion

Most people talk about earning more money, however, not many people talk about how to effectively manage it. While creating wealth is essential, it is equally important to protect your funds and use them prudently. Your hard-earned money needs to be saved, invested, and spent judiciously in a systematic manner in order to ensure long-term stability and liquidity.