7 Ways to manage your finances

Create a realistic picture of your budget

There’s no point in fooling yourself about the amount of money you earn on a monthly bases. When you realistically look at the amount of money you spend every month and compare it to your paycheck, you’ll finally be able to realize what puzzle doesn’t fit into the whole picture. You should put every expense down on paper, so you can see on what luxuries you need to cut back and which things are affordable to you. It’s recommendable that you create a budget for everything you want to buy or do during the upcoming month – this way you won’t spend a dime more than you actually need to.

Pay off your debts before you get new loans

When you’re planning your future, you need to consider the baggage you’re carrying with you. First and foremost, try to be completely independent – and that excludes an occasional visit to your parents when you’re short with cash. The next step is paying off your student loans; when you cross over that milestone, you’ll feel so relieved and enthusiastic towards new projects and investments into your independent adult life. You’ll gain a certain sense of control over your life and – before you know it – you’ll be addicted to it. When you become your own man/woman , there’s no turning back.

Be smart when it comes to making investments

The idea you have about investments in general is probably pretty simple and unrealistic. Once you enter this world made out of imaginary money and items yet to be made, you’ll realize how complicated things out there can be. Basically, you’re investing into the future – and no one can predict it and be 100% accurate when it comes to investments. Also, it’s not a great idea to trust your funds to a complete stranger without checking his or her reliability and professionalism. The stocks are unpredictable and you could lose every single penny if you don’t think through the investments you want to make.

*Consult a professional about your bookkeeping *

There’s a good reason why people go to prestigious schools to learn how to handle money. Sure, you can hear a few good pieces of advice from your friends and family, but why risk it all when you can have a professional bookkeeper? Thanks to Malcolm Whittle from Acton Bookkeeping, you can easily be trained to manage your incomes, or pass the part regarding money-handling and bookkeeping in general to his company, that has decades of experience in this area. If you’re leading a business, it’s very recommendable to employ a private bookkeeper and forget all about the stress caused by the never-ending list of bills and payments.

Create a checking account

The easiest way to use money is to have one checking account from which you can withdraw money or write checks. The account you have should be insured – that way, your money will be protected from possible accidents, like thefts and fires. Depending on a bank, it’ll be required from you to have a minimum balance that could vary from ten to a couple hundred dollars. It’s recommended to regularly balance out your checkbook so you can keep track of each check you write. The best thing about checking accounts is the fact that you can’t spend money that you don’t have – you need to have constant coverage of your payments.

Learn how to use your credit cards

Every credit card basically loans you an amount of money that you can spend. That amount varies from your credit history and your yearly income. The problem people usually have with credit cards is the fact that you’re spending the money you don’t really have – this is the main reason for getting into abnormal debts. The end of every month is when a bank requires from you to complete your payment and – depending on a bank – they may require you to pay the full amount at once. If you can’t resist the constant temptations around you, credit cards may not be the best solution for you.

Create a savings account

Is there a better way to have a secured future than a savings account? When you create this kind of account, you can earn interest – the more money you have on your account the more interest you get because the amount of your interests becomes higher. Before you open a savings account, you should check the reliability of a bank you plan on working with. Also, ask about a minimum balance you need to maintain, fee payments and whether they are on a monthly or yearly basis and what are the limits of possible transactions. To maximally shorten the time you need to spend in your future bank, be sure that you have all the necessary documentation with you – an identification in the form of a state ID or driver’s license, the first deposit that matches your bank’s minimum balance and different kinds of proofs for your social security number and your current residence.