13 Money Management Tips for Beginners { Easy and Simple}

What Is Money Management?

Money Management is a process of planning of savings, expenses, investing etc in a proper manner.

Money Management Tips

I am going to share some of the money management tips from which I get good responses. There is a high probability that you too will get one of the good tips among these 13 tips. If anyone can help you then I will be happy. 😌

13. Start Investing as early as possible

I know you had heard from everyone to start investing as early as possible. Do you know why they say this? The answer is just because of compounding yes power of compounding. I know you might have heard somewhere. The power of compounding is the backbone of investing. I feel like that. So early you start investing is far much better than delaying it. If you ask me what is the best time to start investing. I will tell you that the best time to invest was yesterday and the second best time is today. Start with small capital no problem dude. 😎

12. Start Saving a small amount of your income

Before investing you have to have at least a little bit of saving for emergencies because you don’t want that you stop investing. If this will happen you can’t get the benefit of compounding. So have a saving and try to save a little Percentage of your income so that you get an advantage.

11. Make Budget

Budgeting plays a very importantly because if you have a budget you will not overspend, you will not do emotional shopping, you will have control over your money, and it helps you to have a good foundation for your upcoming future.

10. Don’t do emotional shopping

Why? Why? People do this I don’t know. I do respect your emotions but at the same time, I have a little bit of fear about your emotional shopping because you have lots of emotions concerning everything right. But tell me one thing you have a limited amount of money so why do you do shopping like that? Be practical while purchasing goods because you are not going to have an end to your emotions 😜. That’s why to be practical and have a calculation before spending on shopping.

9. Never purchase to show off

🤐 Should I say? Literally, what is this? I don’t think your happiness is too cheap that will be decided by others. From today onwards you will purchase things for yourself not for others ok .☺️

8. Clear all bills on time or before time

Clearing all bills on time is good and it is a very good thought. But it often happens that it gets hectic on deadline, sometimes we forget to do it just because some suddenly new work arises at that day. So to avoid that penalty try to clear all bills before the deadline it will be good for you it’s totally up to you. How you are convenient ok.👍🏿

7. Keep track of your money

My all-time favorite line is if you can’t track it you can’t control it too. So my dear colleagues if you track your money then well done otherwise start now. Every single penny you spend tracks everything. Initially, it can be very irritating so start by tracking big expenses medium expenses, and then small expenses too. But it is a must you have to track everything.

6. Don’t take loans for personal luxuries

Don’t take loans for personal luxuries please stop it, buddy. It’s ok if you don’t have personal luxuries for a few months or a year no problem dear. You still can easily and happily live your life. So I strictly recommend that you will not take any loans for your luxury items.

5. Don’t Invest by seeing what others are investing

If someone is Investing 50K$ in crypto. Does it mean you too have to invest that same amount of money in that particular segment? No dear no way you can’t do that. It’s absolutely fine to get influenced by others but it is very bad to invest in what they are doing. You have to have your brain, your calculation, and your risk management. Note it.

4. Have a Record of your income

You have to have a record of your income anyhow for your easiness and your bright future. It is important because you can compare yourself from that day and today. How you are growing up. Whether your finance income graph is going up or not? Whether your expense and liability, the graph is going down or not.

3. Try to increase your income every year

This becomes important when suddenly your income stops for any reason then you can have that advantage. Also, day by day inflation is touching the sky so for that too reason one should try to get an increment in their paycheck so that they can easily deal with their growing expenses.

2. Do Side Hustle

I strongly believe that every person in the world should do a side hustle. Many say what is the need of it. But listen you are not doing for me. You have to do it for yourself, for your family, for your goals, for your passion, etc. If you do it properly you can have retirement under 30 or 35 which might sound good instead of retiring at 60. Rest is in your hand.

1. Have a patience

Listen to what I had talked about all that things will take time. I had not given you any shortcut to manage money. I had given you some tips so that you can customize your money management which can make you feel better and confident about money. So do give yourself at least a couple of years or months to see the changes and I am pretty sure that you will get results guaranteed if you do it with proper planning.

How to manage money?

The best way to manage money is by applying the 50-30-20 Rule. It is very easy to do trust me guys this will give you a very good feeling after applying that and you will say why I was not aware of this rule 😱 . You will diversify your income into three parts needs, wants, and desires. Let’s understand with an example supposing you earn 3K $ in a month. So things will go like this 1.5K $ for needs, 900$ for wants, 600$ for saving and investing. Well, you can customize it on your own too.

What are the skills required for money management?

The only skill you want to learn about money management is learning how money works the day you got to know about the real truth of money from that day onwards your money management graph will be awesome my dear friend. You can understand money by watching YouTube Videos on money, listening to podcasts on money, and reading personal finance articles like us 😂.

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