Managing your finances

The ability to be smart with your finances in order to make more money is not always easy.

We live in a society where we are encouraged to consume, and we often end up making poor choices as consumers that see us buying things we do not need and ending up with less money. Follow these three simple steps that will all but guarantee you will end up with more money in the bank.

– Work on a ‘no-debt’ system
This one is pretty simple; if you spend more than you have coming in, you will always be in debt. Your initial priority should be paying off credit cards, loans, and any money you owe. The deceptive thing about credit cards and loans is that they convince you that you have more money to spend than you do, subconsciously allowing us to live beyond our means and preventing us from saving.

– Budget
The more money you spend, the less money you have. Set a goal; such as how much money you want to save by a certain time frame and stick to it. Think about expenditures you can cut to help achieve this goal, but remember to be realistic or it will not be attainable. Some easy money savers include waking up five minutes earlier to make your morning coffee at home instead of buying it, or researching if your current phone plan is the most economical for your needs.

– Invest
Investing money, provided you understand the market you are investing in, will accumulate more money for you. It can provide you with a steady secondary source of income and can increase the return on your capital. It can also, however, be daunting and stressful, so pick an industry or area to invest in that interests you and speak to an advisor to make sure you are informed.

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