People love money. Unfortunately, money does not reciprocate that love because most of the time, it seems to slip through their fingers before they can even know they had it. It is very important for you to know how to manage your money. Read on, you just might learn a thing or two.
There is an easy way to go about this. Of course, you have to make sure that the expenses never exceed your income. One, note your income, after taxes. Then after that, take care of all the expenses. Some of them include rent/mortgage, food, nanny, car repair, car fuel, utility bills, child support and alimony. Whatever remains after that can be saved for the future.
Be on top of all of your expenses Have you mastered your expenses? Yes, but have you mastered everyone of them, no matter how small? Everything that you spend money on every month should be listed down. List down everything that you can think of. If you have to pay for it, then it is an expense and it needs to be taken care of.
Now, you have to find out how you can minimize the expenses. Looking at it casually, you might think that there is no way for you to do that, but the truth is that you can always do something. Look at the list of expenses critically. What is it that is in the list that you can do without? For example, if you buy snacks at the canteen close to your workplace, you can bring some from home to take with your mid-morning tea.
How much money do you spend on your home? Do a careful audit of the money that you spend on your utility bills at home. Find out what you can cut out and what you cannot. Switch off the lights when going out. Switch out the air conditioners when going out and most importantly, use the major appliances only when need be. For example, there is no need to start the dishwasher to clean a few utensils.
Keep the appliances unplugged when they are not in use. Another thing, when cooking, avoid opening and closing the fridge door every o often. Get everything that you need to cook and close it. That way, no warm air gets in and no cooling will be required.
Is the insulation of the ceiling and the walls good? In addition, is the roof ok? Are you sure that the windows and the doors are sealed in such a way that they cannot let in cold air? You need to do a thorough audit to ensure that your home is in prime condition.
Have you done your math? How much money have you saved? A lot? A little? It doesnât matter because whatever you have saved was going where it shouldnât have been going before. You can save that money for your dream vacation, or use it to settle other bills.