List of Unspoken Rules of Financial Management and How to Use Them Properly

List of Unspoken Rules of Financial Management and How to Use Them Properly
There’s no doubt in anyone’s mind that it
is absolutely essential to properly manage personal finances. Whether you’re
saving for a rainy day, making sure you’re covered if the car breaks down or
the washer breaks, planning a vacation, budgeting to pay off credit cards, or
trying to make significant investments like buying a house, knowing how to
manage your money is essential.

While not everyone needs to use smart finances
to get out of debt, absolutely everyone wants to know how to make the most out
of their earnings, and enjoy a higher quality lifestyle, that is stable and financially
The following tips aren’t published in a book anywhere, and they’re not
something we teach in school however they are points that everyone who is savvy
when it comes to savings, investments and outgoings are well aware of.

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Stay On Top Of Interest Rates

This may be easier said than done, as many
families have mortgages, loans, credit cards, and car payments to balance out
every month. However, when you have time you can save yourself significant
amounts of money every month by paying off higher-interest debts faster than
others, and making sure you’re aware of when you can switch to 0% interest
credit cards or mortgages. Interest can eat up you salary, and you have nothing
at all to show for it.

Mark It On Your Calendar

Those days when payments are due, or taxes
need to be filed should be as regular on your calendar as other daily
necessities. This is a basic thing to do that ensures you never miss a payment
and are completely in control of all your finances. You can tell straight away
if something isn’t right, and won’t end up running around trying to pay
everything at the last minute, or dealing with late fees.

Set Real Goals

If you have a dream vacation, or car, or plans
to renovate your home, you should be vaguely aware of the costs involved.
Figuring out the exact costs and how much you would need to save every month in
order to realize these goals can be a great step in restricting wasteful
spending. Many people don’t even realise how much they spend a month on
take-out, restaurants, cable TV or even small purchases like buying lunch at
the office canteen instead of taking their own. You may surprise yourself with
how much you can save when you suddenly have a reason to stop spending on
unimportant items.

Commit To A Savings Account

Nate Mackinlay, a financial manager from Best Australian Writers, says that
‘most people don’t realise how much they can afford to save.’ While many of us
are able to account for 90% of our earnings, between housing, groceries, the
gym, and a social life, there is often a final 10% that just disappears. However
that last 10% is spent, you can normally find it by writing down every single
purchase for a month. At the end of that month you can then normally see that
5-10% of your income could go into a savings account, if you just stopped
unnecessary purchases.

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Get Rid Of Your Cards

Dozens of experiments and personal stories
show that it’s much easier to save money and stop unnecessary spending by using
cash only. This means that you actually see your finances dwindle with every
purchase of a few dollars, and you could be surprised by how much you’ve spent
at the end of the day.

Stay Positive

If you’re walking around telling people
you’re bad with money, can’t save up, and will never have savings, then that is
exactly what will happen. Find a way to adopt a good mental attitude, tell
yourself you can do it, and treat saving up as a form of self-love – you’re
taking care of yourself, your future, and your dreams simply by putting down a
spare lipstick or pair of designer trainers.

Don’t Be Shy About Your Value

of the best ways to have more money is to make more
Don’t be afraid to negotiate for better pay, a better job title, or even a
promotion, maternity or paternity pay, overtime, or bonuses. When you know you
are a good employee, you deserve to be valued, and you should be paid for the
good work you do.

Don’t Cut Out Treats Altogether

While many of us could cut back when it
comes to take out, clothes, and other indulgences, completely depriving
yourself is not the way to go. It’s not feasible and you won’t stick to your
new plans if you’re miserable. Try to cut back, rather than completely stop
buying yourself the small things that make you happy.

There’s no easy way to have everything you
want, and never have to think about money. However, implementing the above tips
can radially improve your financial situation with very little effort.