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Managing Money For Beginners

Money is an intimidating topic for a lot of people, but many believe that managing their finances requires a lot of technical knowledge and that that technical knowledge is too difficult for them to learn, that is not true, you do not need a degree in finance to manage your money there are only some concepts you need to learn to be great with managing money those are tracking where your money is going, building a substantial emergency fund, paying down debt, adopting a simple investment strategy, creating a goals-based budget and pulling the two levers of financial independence

Track your spending

Tracking your spending is not as complicated as many people believe it to be, you must begin with keeping a record of all you statement and credit card statements and tally up your monthly savings into a few different categories. Break all of your spendings down into spending on housing transportation and food values which is n any money you spend on things that make you happy. Any non-essential expenditure that doesn’t really provide any amount to your life tracking your spending is a lot of work though which is why most people don’t do this.

track-your-spending

Using a tracker

The problem of managing money is both challenging and straightforward, which is why the right mindset is often more important than technical knowledge. You can manage your money by using a custom-built expense tracker and being a part of the 30-day money challenge, and if you want to join the 30-day money challenge, it’s free. The expense tracker is quite simple, enter what you spent, your short description of it and whether it was valuable or not.  Enter each expense you got, what’s cool then is that you get this little pie chart when you’re done that tells you how much of your money is going to your essential spending values and also tells you your total amount in dollars.

Plan post tracking

When people think about managing the money, they typically think of investing or paying down debt or complicated issues. Start tracking where your cash is moving so that you can erect an emergency fund made up of your savings. If you have a burden of debt hanging over your head that you want to be relieved of immediately, you must wait and plan until your adequate emergency fund your goal is not merely to get out of debt as quickly as possible your goal is to pay off your mortgage and never fall back into debt again.

Conclusion


Make sure you do not accumulate debt again, some financial stability which means having some cash set aside in case of a financial emergency, so life is going to pull the rug out from under you at some point. The problem is we don’t know when that is so what happens if you have an unexpected cost come up and you don’t have any cash on hand, you’ll need to borrow money and go back into debt.