Keeping your money organized is not as difficult as launching a rocket from your backyard. It doesn’t require professional skills to become a money manager. But it would be a mistake if you spend all your money from your paycheck as soon as you get one.
So, is there any guaranteed formula to become a successful money manager? I guess not. You need not just to know how to earn money but also how to maintain the flow and how to make it work for you. You should have full control of all money that enters or leaves your wallet. However, there are a few steps that you can follow to get into the process. So, check out these unique tips that can help you to emerge as a successful money manager in the coming year.
1. Ignore money and focus on goals
Instead of thinking about how to become a successful money manager, you should shift your focus to your life goals. You need to understand that money should be used for fulfilling your goals. So, for that reason, you need to establish your life goals and invest your money to get success.
It’s a wise decision to save for prime life goals like retirement, paying off debts, marriage, etc. It also makes sense to earn dollars for short-term goals like a family tour in Europe or buying a new house.
2. Understand your cash flow
You may need to understand your cash flow if you want to manage your money. You can make a plan to control your finances if you know when you’ll be getting your paycheck. If your income is irregular, make an emergency plan based on worst-case scenarios.
Note down your income details such as income sources, or the date of your paycheck, and keep the details with you. This way you can plan your spending by considering the date and cash in hand. Once you become aware of your cash flow pattern, you might even prepare a budget plan on your gross income rather than considering your net income.
3. Ask your employer for a raise
One of the best ways to become a successful money manager in 2019 is to increase the amount in your paycheck. Talk to your boss and show him the stats about your performance in the organization and all your achievements at work. Then, ask for a raise.
4. Negotiate your bills
Always negotiate all the bills. Starting from your utility bills to your cable bill, medical bills, and many more can be negotiated. You can negotiate bills for the same service you are getting every month. Wait a few months and call the service provider again to try to get a better deal.
5. Get coupon benefits
Coupons can be useful for millions of consumers to save a lot of money. Taking the benefits of the coupons is the best way to save money on purchases and it doesn’t show you as a broken person. Using coupons wisely is a sign of a good money manager.
6. Check your credit report and score
Get your free credit report from the 3 major credit bureaus. Many credit card companies may provide you with your FICO score each month for free. You can also enroll yourself in free credit-monitoring services. It’s important to check your credit score periodically. Your credit score is one of the most important factors that’ll determine your financial success. Don’t forget to check your credit report and dispute errors if you find any.
7. Consolidate your debts
Debt is a bad habit that you must avoid. If you want to become a successful money manager, you must get out of debt completely as soon as possible. Debt is something that won’t allow you to manage your money properly. When you don’t have debts, it’ll be easier for you to master your income and grow your savings.
If you’re tired of paying down your debts, you can consider the debt consolidation option. Instead of paying down multiple debts with high interest, you can even take out a loan and pay them off. Make sure the debt consolidation loan you are taking out carries a low-interest rate.
8. Eliminate wastage
Believe it or not – most people waste a great portion of their income. We like spending money on such things that are unnecessary and should be avoided. Sometimes we pay for services that we don’t require at all. We like spending money on luxuries, buying unwanted stuff, and paying interest on accounts that we use occasionally. All this waste of money makes us poorer. So, listen carefully, stop yourself wasting money, at once!
9. Set up autopay option for savings & bills
Setting up an autopay option for your finances may help you save money and time. It’s much easier to schedule a certain amount from your paycheck and transfer it to your savings account. Also, schedule all your bills so that they automatically deduct from your account every month before the due date.
10. Share your thoughts with your partner about money
If you’re in a serious relationship, you should share your thoughts about money with your partner. It’s important to carry similar thinking about finances if both of you want to grow your finances in the coming year. If you really want to become a successful money manager, talk to your spouse, and tell her/him about your financial goals and your future plans. He/she should know and give an opinion about the financial planning you are doing for both of your future.
Most of the time financial infidelity becomes the sole reason behind a broken relationship. Financial chit chats might turn into intense arguments. However, the more you share your thoughts about money with your spouse, the easier it will get…..
11. Invest time to educate yourself
Are you a bad money manager? Do you want to become a successful money manager now? Most of us might say “yes”. But most of us also don’t know that we will not succeed until we overcome the main problem, and that is “financial illiteracy.”
So, what do we do now? We need to educate ourselves on various financial subjects like budgeting, wealth building, money-saving, managing debts, investment, real estate, etc. By using our spare time we can learn about those things easily. Read books or read articles online. You can also attend seminars. You may even ask your parents about it and get suggestions from them. The more financially literate you become, the better you can manage your money.
So, if you follow these steps, there are chances that you’ll emerge as a successful money manager. You can also increase your income by doing a part-time job. You can use that money to pay off credit card debt, to save for retirement, or to create a fund for a mortgage down payment in 2019. You never know, your additional earnings may lead you towards becoming your own boss, and you become a successful entrepreneur till the end of 2019, best of luck with that!