How much is reasonable to give as a tip after a meal? Or how much do you tip your valet for parking your car? How much do you squeeze into the extra beefy palms of the bouncer at the club as hails you ‘Chairman, Sir!’ for the umpteenth time and makes to dislocate your shoulder as a good gesture? These tips for tipping are not written as laws in a holy grail but somehow they are known and adhered to in most occasions. Do you however know the tips for handling money effectively?
Okay here goes some quick tips for personal money management:
- Keep your saving account separate from your checking account. ‘Out of sight, out of mind ‘ works in your favor as separating the two accounts will help you save better and spend less.
- Set short and long term reasonable financial goals with your budget. This will help you save better because you have a set, realistic target you want to meet and having that in mind makes managing money easier.
- Get rid of debts first. It would be insane if you saved a lot of money and still owed a whole lot more. Basically, you’re still broke and haven’t saved as much as you think you have. Pay off all your debts first and then start saving.
- Be flexible but not too flexible with money. You can’t predict economic conditions and unforeseen circumstances may arise such a drop/rise in pay, economic inflation and so on. Staying flexible will condition you to managing money better.
- Invest, invest and invest some more. Do not just save money, learn to invest it. Like the Parable of the Talents, we must learn to do with what is given and make the best out of it. Saving is never enough. Learn to invest wisely.
- It’s a cashless age where having cash is more of a blessing than a curse when saving money. Reality hits faster when there is an exchange of money physically than when a cashless transaction is done. Learn to limit the use of credit cards and use cash instead.
- Get good deals. Just because it’s expensive doesn’t mean it is the best. Find out ways of getting good deals for quality and save more. Here also, coupons are your friend. Make use of the coupons you nave, get more and make use of them still. They will save you a whole lot of money.
Now, these are not set in stone somewhere but i’m pretty sure following them will do you and your finances some good.