Some Tips On Bad Money Management We Need To Know Before Time

Written and Directed by Simon Senaya
From MOLTIVATION  HUB
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Bad money management. It sounds nasty and you probably want nothing to do with it.There are some great tried-and-tested strategies you can learn how to manage your money the right way.

1. Create a budget
Budgeting helps us see with clarity and full transparency our financial situation and this is of most importance for better managing your money.

2. Understand your expenses
Many people actually don’t know the total amount of expenses they generate on any given month. This is a problem but there is an easy solution for it.

3. Understand your income
Once you understand your expenses and income and have a firm understanding of the money coming in and out of your life, it’s time to take some additional steps to best manage your money.

4. Consolidate your debt
The first thing to do is to get it under control and work on getting rid of it. If you have credit card debts, student loans, and other debts; look to consolidate them and try to get the lowest interest rate possible.

5. Slash or remove unnecessary expenses.
Remember, the idea is to learn how to manage your finances better by taking everything and every penny into account.

6. Create an emergency fund.
Emergency funds are an important part of a healthy personal finance plan.

7. Save 10 to 15 percent for retirement.
First thing should be to establish a savings target—one that tells you approximately how much you should set aside over time to meet your retirement goals that will allow you to live the sort of lifestyle you envision.

8. Review and understand your credit report.
If you want to aim for a great credit score, keep your credit card balances low and work on paying off your debt instead of moving it from account to account.

9. Use a tool or personal finance app.
Many tools or app will allow you to safely consolidate, manage and control your money all in one place.

10. Follow money management resources.
Knowledge is power. Every financial guru we know today started off like you and me. They just continuously learned and educated themselves and turned their passion into their profession.