For any individual specifically for the sole breadwinner of a family, managing and controlling your finances to make it stable can be very difficult. This is especially true if you only have minimal savings plus relying only on a fixed income each month. But no matter how difficult it can be, it has to be done and the only way to do it is proper management and knowhow on balancing your monthly income against your expenses. If you look at it, this is simple enough. You don’t have to be a genius to know that proper management of your money is to make sure that you don’t spend more than what you earn.
If your expenses exceed what you make in a month, then you are really in big trouble and may end up borrowing money from various personal loan lenders or maxing out your credit card which will surely put you in the poorhouse. Here are some tips that you may find helpful in managing your finances.
Proper Management of your Money
Budget is the key. Proper balancing of what you make and spend is the best and only way to make sure you will be financially afloat. If possible, aim for at least having 10 to 20% of your income placed in savings. This may look hard but very doable. Most people actually can save a lot if only they are able to control the urge to buy impulsively.
Yes, this is one of the major causes of why people are not able to save. People are basically vain and this is the reason why they go on shopping sprees. If you can take this out of the equation, it is a sure thing that you will be able to save. Second, make sure you focus more on the necessities (such as utilities, education, & insurance) instead of luxuries.
For instance, if you have an old car but still working and serving its purpose, why buy a new one? The point here is you can always postpone purchasing luxurious items until such time you have enough surplus to do so.