Have you ever found yourself in a situation where you had to stress about money? Most of us probably say yes. Having your personal finances organized will save you time, lower your stress levels and it also saves you money because you won’t need to use your credit card or borrow the money with high interest ever again.
Follow these simple rules to improve your personal finances and take control of your money right now:
1.Start tracking your expenses
Do you know how much you spent on ordering UBER eats last month? Or buying coffee? Measuring the expenses is the first step in managing your personal finances. Monitoring your expenses should not take more than 5–10 minutes a week. One of the easiest ways to track your expenses is to start budgeting with an app called MINT or if you are a bit old school like me a good old excel spreadsheet will do its work. You can download my favourite budgeting template HERE
2. Have an emergency fund
Having an emergency fund is a really important part of managing your personal finances. Having at least 3 months’ worth of savings to cover your basic living expenses will make your living much less stressful. It provides priceless peace of mind knowing that whatever happens, you are ready for that without reaching out for a high-interest credit card or a consumer loan.
3. Check your subscriptions and any recurring monthly bills
You will be surprised by how many people have an unused gym membership. In 2019 alone, Americans spent $1.8 billion on unused gym memberships according to this survey.
Maybe it is unused Spotify, Netflix or you really do not need the most expensive mobile plan? Checking your usage is definitely worth look at. I don’t know any company that will remind their customers that they haven’t used their service despite paying for it for months or even years.
4. Make sure you pay the best prices
While shopping is not exactly saving money, but if you have to buy something you can make the most of your money comparison shopping, ensuring that you’re paying the lowest prices for products and services. Look for discounts, coupons, and cheaper alternatives whenever you can.
Many people are not aware that a lot of online stores get their products from Aliexpress, which is a basically online warehouse, you can find almost everything there with the cheapest prices, the only downside is the shipping time.
If you like online shopping then you should use a browser extension called Honey (it is completely free) it will automatically find the bonus codes(if there is any) while you are checking out the order.
You can download the app by clicking here.
5. Plan your weekly menu and shop groceries once a week
Having a weekly shopping list will save you time and money. I find this one of the simplest ways to start managing your expenses. Reducing the frequency you go to the shops reduces the chances to do impulse purchases.
Following these simple ways to improve your personal finances will help you save your time and money. It does not happen overnight but after a while, your savings will start to grow and you can pay off the debt you might have faster which means you can start saving even more.
It is not just about having more money in your pocket it is peace of mind and less stress on things that can be solved with some lifestyle changes.
Next post will be another net worth update. If you like the content I write please consider subscribing to my blog.