Money Management Tips for Beginners
You make money through some medium, whether it is job or business, do you have money problem at the end of the month? So in this article, you will learn Smart Money Management For Beginners and Smart Money Management Tips For Beginners
Can you save money for the future? You earn money, but still the problem of money remains and you think, maybe I am not able to earn that much money but this is not the problem of not having smart money management.
What is money management?
Money management means managing your money, so how much of the money you earn depends on your needs, how much you spend on Percent Savings.
Money management is a finance management whereby you manage the expenses, savings, etc. in such a way that the money problem does not come either in the present nor in the future.
If there is money but there is no management then what will happen?
You may have seen many lickers, golgappers, or small-scale workers along the road, who are very crowded in the shop or on the couch and they earn so much that you cannot believe it, but even after many years , 99% of them have the same Life Style.
This is because they earn money but cannot manage and even after earning a lot of money the money problem persists. You manage your routine life well, but if the management is not there, then suddenly you face problems and you have to borrow money.
In fact, no matter how much our income increases, if we do not manage the money, then our problem will always be about the money.
What is Smart Money Management Tips For Beginners
We all generate income in different ways, so there is no fix way, yet there are some important points which need to be kept in mind.
Important Points of Smart Money Management
- Budgeting your income and expenses.
- Controlling expenses.
- Making a list of necessary expenses.
- Spending as per budget.
- What expenses can be reduced by Savings.
- Create a separate Money Arrangement Budget for your loan etc.
- Saving for sudden big expenses.
- Investing your savings means investing.
Important Tips for Smart Money Management For Beginners
- Get used to saving more than expenses.
- Get into the habit of investing, not keeping the money in the house, they need a policy, savings account or savings card, F.D. Invest in etc.
- Make the expenses that are necessary first, then spend for mourning.
- If you take any loan, then take it for your business or for that work, using which you continue to generate income and also repay the loan from that income.
- To fulfill your desires, take a loan only when you have complete management to repay it.
- Keep pace with the income and expenses due to you, because if the expenses are high then you will come into the problem.
- If the income is getting more than the expenses, then use that income in saving and later invest that savings in the right place.
- Remember, small savings make a big capital.
Income Management Method For Beginner
Income management method
100% = 50% + 20% + 20% + 10%
Income = Necessary Expenses + Deposit + Small Savings + Expenses for Wishes
- 50% is spent for our important expenses, which we have to do.
- We have to deposit 20%, like the installment of the policy, R.D., F.D. etc
- For 20% small savings, that is used in your sudden expenses, you can deposit it in your bank, which can be withdrawn if you need it.
- 10% These expenses are what you make on your own wish like going somewhere, eating in resturant etc.
This is the common method that you can adjust according to yourself like –
- If the loan is taken, then the remaining expenses will be reduced to a part to repay the loan.
- If income increases then increase your savings and save.
- If there is a big expense in the future like marriage, preparation of any competition for the child, then we can adjust this award to this Ratio.
In this way, through money management, we can solve money problems to a great extent today and in the coming times. For money management, you have to make a book, in which write the details of income and expenses, according to the above formula. By which you will know that said how much is being spent and whether there are such expenses which can be reduced and saved. And how to invest savings which can solve money problem in the future.
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