Let’s face it, everyone has times where they spend more money than they intend to or do not save as much money as they should. Poor money management is the biggest cause of debt and individuals with poor money management skills will have a very difficult time ever getting out of debt. There are a number of different things you can do to take control of your finances and following some simple tips can make money management much easier.
1. Set Up Automatic Deposits For Your Savings Account
One of the best money moves that you can make is to have a certain amount of money deposited into your savings account on a regular schedule. Some individuals have their paycheck direct deposited into two separate accounts; the majority of their pay into a checking account and the remainder into the savings account. This allows individuals to save money without even thinking about it.
2. Review Your Credit Report Annually
Reviewing your credit report annually will reduce your risk of identity theft and will show you any mistakes that have been made on your credit report that will cause you to lose money. Mistakes on your credit report can cause lenders to offer you a higher interest rate or even deny credit to you altogether.
3. Track Your Spending
If you keep track of how much you are spending on items, you are less likely to spend more than you intend. By keeping track of your spending, you will see which of your weekly purchases are costing you the most money and will be able to see ways to trim your spending while still enjoying the same quality of life.
4. Keep The Change
One of the easiest ways to save money is to pay for all purchases with a whole dollar amount and pocket the change to be placed into a savings jar or piggy bank. You would be surprised at how fast the coins will add up and at the end of the year, the money can be deposited into your savings account.
5. Just Say No To Alcohol In Restaurants And Bars
Want to reduce your dining bill by as much as 40%? Skip the alcoholic drinks at dinner and order a soda or tea instead. The price of an alcoholic drink poured by a bartender can be as much as 400% inflated over the actual price of the alcohol and ingredients in the drink. If you would like to have an alcoholic drink, try to attend the restaurant’s happy hour when the drinks are generally half price or reduced on special.