“The concept of how to manage money is a major stress trigger for many people. Even for those who may feel that they have a good handle on it, the way you manage money affects your lifestyle in ways that are both obvious and obscure. Understanding the basics of money management and ways to implement it into your life, can help set you up for the lifestyle you have always wanted.
Be Realistic. Use Numbers.
When learning how to manage money, one of the biggest areas of resistance is often the realistic amount that you spend in each category. For something as simple as buying a coffee from your favorite local baristo each day to the ongoing maintenance of your vehicle, it is important to use the actual numbers. It may not appear to have much of an impact on your finances when a coffee only costs $3, but multiply that by 365 days a year, and you are spending $1,095 each year in coffee! Being realistic about what you actually spend on products and services will help you to make appropriate changes and manage money more effectively.
Keep Track. OF EVERYTHING.
Sometimes we become oblivious to the way we manage money and therefore are unable to make any necessary changes. Give yourself a holistic view of what you are spending your money on by keeping track of everything you buy. Yes, I mean everything. You spend $1.15 on a pack of gum, write it down. You pay $10 to get into your favorite nightclub, write it down. Do this for 30 days, and you’ll begin to have a better understanding of where your paycheck is going, and HOW TO MANAGE MONEY. Your income certainly affects your lifestyle, but so does your awareness of your spending habits. Perhaps you could cut back on something simple and be able to afford that trip to Paris that you have been dreaming of! Keeping track of your spending allows you to find the room for opportunities.
Set Lifestyle Goals.
What are you working toward? What lifestyle do you dream of living? Give yourself a clear picture of what you want and why you decided to better manage money, and then set yourself goals to get there. After doing the hard work of tracking and budgeting your spending, it is important to reward yourself to keep yourself motivated as to why you made the changes in the first place. If you want to live in downtown Los Angelos and are saving up for an apartment, buy yourself a cute decoration for that new apartment once you have hit the 50% mark of your goal. If it is a new car you are looking to buy, get yourself that adorable key chain that would go with the keys to your brand new car. Reward yourself for learning how to effectively manage money and moving closer to your lifestyle goals.
Your lifestyle strongly correlates with the ways in which you manage money. Are you a saver? Are you deep in debt? Money management is a game of cause and effect. You get what you put in. Making sacrifices in the present can help you to live your dream lifestyle in the future. Be realistic with your spending habits and learn to manage money appropriately, and you may find the opportunities to be endless.”