How to Manage Your Money

Honestly to manage your money wisely is to not spend all of it. What do we do with the money that we don’t spend then? The money we don’t spend we need to allocate it properly. Where do I allocate the money I don’t spend you ask? You invest and save it. Investing will grow your money and saving will keep you with an emergency fund. Along with investing you can also pay off debt if you have any.

How to not spend all of your money

Doing the 70/20/10 rule can help you make sure that you don’t spend all your money and that you allocate it correctly. The 70/20/10 rule goes like this, you take your income and subtract bills and taxes, you’re left with a number. That number you take it and you have 70% of it for spending, you can spend on things like food, water, clothes Etc. 20% will go to paying off debt or investing, 10% will go to saving. That’s the way I do the 70/20/10 rule and it works great. Therefore if you stick to a financial rule like that and you will allocate your money so that you’re not always spending all of it.

Write down all your money each week or month

If you write down your income and expenses each week or month then you see what you’re spending on that you shouldn’t be spending or just get an idea on how to budget more. It’s good to write it out so that you see what you need to do and how you need to allocate your money correctly. It’s very efficient and it’s one of the top ways to the budget your money and help your money situations.

Pay off debt

The average household credit card debt is about $7,000, that’s a lot of money that you have to be paying per month because with a 28% interest it seems unreal. Imagine if you can get 28% interest that you can grow your money with, well your credit card company is getting it from you, it’s time to pay off your debt.

Start investing

There are investing platforms that allows you to invest with as little as $1, it’s time you start. Investing a bit each week or bi-weekly or monthly can grow your money substantially throughout time. Allocate some money to invest whether whichever investment you go for during that time. You can invest in stocks, bonds, ETFs. You can also invest in real estate. Invest in your own knowledge. Invest into your own business or other people’s businesses. I personally don’t invest in Bitcoin but to each its own. There’s also precious metals you can invest in. Start investing today.

Save $2,000 or go further and get six to 12 months worth of expenses saved up

Did you know 48% of Americans don’t have $1,000 saved up in case of an emergency. It’s good to have a thousand to $2,000 savings cushion in case of an emergency. You can save money for three reasons, in case of emergency, save for a big purchase or save to invest. You just need to start saving some money so that you have that cushion in case anything happens.

Spend less, invest more and save more

That is the way to become wealthy is those three steps, if you spend less you will have more money, if you invest more you will make more money and if you save more you will have that in case of anything. It’s time to get your finances right and start building your Empire and Future correctly. How to manage your money is you don’t spend everything you make and you allocate it in certain places to make you more or keep you afloat. You got this, believe you can do it.

Thank you for reading

I appreciate you all reading this article, let me know what you think in the comments, I hope you have a good day. If you like my content don’t forget to like, comment, subscribe and share. Take it easy and get your finances straight.

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How to Manage Your Money