How to manage your finances

Monday, October 22, 2012

How to manage your finances

Worried about your finances? Certainly, finance is an important part of a person’s life. It is the only thing which determines the way a person lives his lifestyle, his area of living, etc. It’s a common fact that incoming money finds hard to be equal to outgoing money. We all need finances to meet our daily and special needs. But if you don’t know how to manage your finances, then it can turn to worries, which can lead to disagreements and tension in your life and family. 

Financial crisis is something which should be resolved earlier before the time passes by. To make a chaos free financial future, one must follow certain tips, and if followed strictly, it prevents you from following into a dilemma.

 Make a list of daily expenses: It is the easiest part of everyday job but hard to achieve as we all carry the mentality to postpone important duties. This negligence results in overburdened financial cost. If we make a list then we can be sure of all general expenses we incur on daily basis and they also enable us to maintain a fixed expenditure cost which will be further useful to maintain the budget.

Avoid being a brand addict: In today’s lifestyle, everybody suffers from brand addiction - accustomed of quality along with high prices. If you ever want to avoid any financial crisis in your life, then you must be ready to avoid these brand names. It doesn’t imply that you should not go for quality, rather if you search around your surroundings, you will find similar quality products at a much relatively lower cost as compared to same quality brand products. So, why to waste money on brands!

Ignore impulse purchasing: Today’s generation are very much fond of the latest technology. Latest equipments, automobiles, handy products are everyone’s desire. But when we talk about financial control then one must think twice before purchasing them. One should control expenses and not spend on such desires as that can simply ruin the budget and make you and your family financially sick. So avoid purchasing something that merely sounds interesting to you at the first look.

Spend less on water and electricity bills: Well, it is always advised to use water and electricity as per the need but we are all habitual to avoid such advice. It’s a fact that electricity and water bills can’t be avoided from our expenditure list, but it can surely be controlled by following some useful measures. Like using common rooms for studying or watching T.V., avoid wasting too much water in gardening or cleaning process, etc. Remember, it’s very easy to cut off these expenses and thereby increase our savings.

Going for shopping- make a list: Shopping is the right of a woman and she cannot avoid being the home minister of a family. So while looking to learn on how to manage your finances, they play an important role. While shopping, it is advised to keep a track of the things which are necessary. If you are addicted to shopping and shop without list, then you will surely do impulse purchasing and suffer from fund shortage affecting your budget severely. So, shopping by sticking to the list is always fruitful.

Control phone bills: Phones are what we can’t live without. We all are addicted to it. The phones are also an expense, which if not controlled can lead to tension. Although, many companies are coming up with various schemes for phone calls that provides much better services at comparatively low cost. In spite of this, phone bills are increasing day by day. The reason behind it is making calls both local and long distance for a longer time, irrespective of the need. So, if one wants to improve his financial condition, this can be a solution.

Savings on premiums: Today insurance covers have become a major part of our life. Along with life, insurance covers almost all areas of our surroundings, whether it’s our property, our possessions like car, etc. Due to this, payment of insurance premium is also being included in our list of expenses which can affect our savings. In order to control this particular expense, one can opt for insurance companies that offer all in one insurance solution. This results in saving money.

About the author: 

Christina Maria lives in Australia and enjoys writing about financial Resources, small business loans and marketing.

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