One of the most valuable personal money management tips I can offer is to use a budget planner. Having a visual idea of your finances makes the process of keeping track not only easier but more accurate and of course also provides you with that important feeling of control.
Opening an online savings account offers you a much higher interest rate than a branch account. Having no branch or ATM access also means you are more likely to keep your savings than dip into them on impulse as withdrawing from this type of account requires transferring the funds into your normal bank account and usually takes at least 24 hours.
Don't save at the expense of your social life, but don't let your social life stop you from saving. Studies show that people who include an allowance in their budget for enjoyable activities are more likely to stick to their budget and therefore save more in the long term. When you resent your budget and feel restricted by it you will be more inclined to break it and ultimately loose track of the entire thing. Remember, life is all about balance.
Review your budget on a regular basis. By establishing the habit of sitting in front of your budget planner and bills one night a week you will be developing a habit that ensures you are always on top of things. In time you will begin to notice ways in which you can improve your budget while freeing up more cash, or perhaps notice a few leaks that need to be plugged before they get out of control.
When it comes to regular savings, change your mindset. To illustrate; when you receive a bill in the mail you know you can't avoid paying it, there is no way around this, it is a social norm. Start thinking of your savings account as a bill that must be paid and even if that bill is only $5 a week; pay it before you do anything else.
These days most people (in the first world at least) receive their pay cheque as a direct deposit into their bank account. Decide on an amount of money you can reasonably save out of each pay and ask your boss or payroll department to split your pay cheque with a set amount going straight to your savings and the rest going to your normal account. With that small amount out of sight it is also out of mind and you won't miss it.
Did you know that by shopping at convenience stores like the gas station and mini mart you could be paying between 25 - 40% more than you would at the grocery store? So, shop at the grocery store.
Pay loans more frequently; by paying down debt on a weekly or fortnightly basis rather than monthly you will seriously reduce the interest on the loan in the long term.
Get to know yourself and acknowledge your weaknesses, we all have them, for some it's chocolate, for many it's shoes, but whatever your weakness is, don't put yourself in front of temptation. If you know you can't walk past your favourite shoe shop without hearing angels sing at the site of a gorgeous pair in the window; then take a different route.
Finally the last of my personal money management tips is this: learn to save money, emphasis here on the word 'learn'. For most of us a savings habit does not come naturally. Studies show that in order for an action to become a habit it must be done over and over again, I think the standard here is 21 days. But we all know that good habits can be much harder to imprint on our brains than bad ones, so start off small. A great way to learn to save is to choose something you want that is small, say a digital camera for $300. Be specific about your goal by choosing the actual camera model you want then get a catalogue picture of it and stick to the fridge. Now we all know these days purchasing items on store finance is sadly more the norm than actually paying for it with cash, but don't do it. Decide to prove to yourself that you can buy this item by saving your own money and remind yourself that you will be saving on finance fee's as well as hefty interest. You know you need to save $50 a week for the next 6 weeks to get that thing which you desire, so whilst keeping your visual goal in mind set about saving that $50 and then reward yourself by paying cash for that camera in 6 weeks time. As you get into the habit of saving, believe me you will actually begin to enjoy the process of setting goals, visualising them, working towards them and then rewarding yourself at the end.
BudgetMama is a savvy yet simple budgeting logic, what comes in should be more than what goes out, and by setting aside a small amount of funds each pay cycle you can be guaranteed to always be prepared for bills before they come in. Sometimes things are easier said than done, so how do we apply this simple logic into a workable system? Go to => BudgetMama.com [http://budgetmama.com/shop.html] now and see the BudgetMama Budget Planner Worksheet in action. Sarah G, the author and creator of the BudgetMama system offers loads of advise on planning and budgeting for the future while being able to still live without financial pressure today. By adopting the BudgetMama approach yourself you will develop the skills and discipline to control your spending and learn how to cover all your bills whilst still having some money left over at the end of the day. All it takes is determination and with that you can do anything!
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