10 Best Money Management Tips To Improve Your Finances

Last Updated by Neiko Johnson on 
August 15, 2021
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10 Best Money Management Tips To Improve Your Finances

Are you looking for money management tips to improve your future?

This is a great time of the year to start thinking about ways to improve your financial situation.

You can use your time to think about your future and start learning money management tips that will help you become wealthy.

For instance, maybe you want to build an emergency fund after the financial crisis the world experienced in 2020.

There are several money management tips to help you feel more prepared financially and reach your goals.

You can start budgeting every dollar you earn and spend so you have a better idea of where your money is going.

If getting control of your finances is a goal of yours then creating a budget is an important step to take.

There are so many money management tips you can make. Some will take effort and others are simple. However, all of them will help you improve your finances.

The money management tips in this article will help you create a solid foundation for your finances.

Certainly, not all of the tips will apply to you, but this is a good starting point.

Let's explore 10 tips that will help you stay focused on controlling your finances.

Related reading:

Starting to budget is one of the most important money management tips

There are two types of people when it comes to budgeting. Those that like to budget and those who don't.

Budgeting can be a task that seems pointless, however, we believe it's important for financial success.

In fact, without having a budget you will not know where your money is going.

The average American family spends roughly 70% of their income on housing, food, and transportation.

You can save money on small purchases but it's also important to understand how much money you're spending on big-budget items.

Most importantly, your housing should not be more than 30% of your take-home pay.

Also, it almost always makes the most sense to buy a used car instead of a brand new one. When buying your cars, you should always pay cash.

Another thing to note, eating out is a budget item that takes up a lot of people's budgets. You can save money eating at home which will help your budget.

These are easy money management tips that can help you create and stick to your monthly budget.

Related reading: Budgeting 101: How to Create a Budget

Reduce your expenses

Spending too much money each month can really impact your budget. Housing costs are the biggest expense for most households.

In fact, reducing your housing costs can really help your finances. Finding a way to live in affordable housing can make a huge difference in your life.

Build a passive income

When it comes to making money, creating additional streams of income is the ultimate goal. However, there are a lot of bad products and services being sold online advertising promises to help you build additional income.

On the other hand, it's possible to build passive income.

Passive income does not mean you make money without doing work. Most passive income ideas time hard work and time to build but if you find the best one suited for you, then it will be worth it.

Take your company's 401(k) match

Does your employer offer a company match?

If yes, make sure you are not missing out!

A company or employer match is when your employer contributes to your retirement account when you are investing a certain percentage. Each company has different rules that you will need to check on.

Most importantly, this is basically free money you are receiving by being an employee who invests to grow your retirement savings. In fact, this is one of the most important ways to build wealth.

It's very important to take advantage of your company's match program if you can.

Don't wait any longer! Look into this as soon as you can!

Get life insurance

Life insurance should be viewed as necessary no matter what age you are. By not having life insurance you are leaving your loved ones with your expenses when you pass away.

Above all, you don't want to leave your family unsupported if you are the primary breadwinner of the household.

Getting life insurance is not hard. You can do so by comparing options online. We highly recommend Haven Life because of its straightforward process. You can even receive life insurance without a medical exam in certain situations.

A quote takes only a few minutes and you can see your policy pricing right away.

You can click here to find a life insurance policy.

Plan for emergencies

Life emergencies are something everyone will experience. It's not a matter of if, it's a matter of when.

You want to plan for emergencies as much as possible. If you own a home, house repairs are something you should expect.

You may have an appliance like an oven fail and replacing that item could set you back a few hundred dollars. This is why we stress having an emergency fund!

On the other hand, even if you don't own a home, you will still need an emergency fund. Your vehicle will require maintenance and repairs as time goes on. Sometimes those repairs are thousands of dollars.

Most people have insurance but that doesn't mean a trip to the doctor or hospital doesn't require money. You may have a medical emergency that will be expensive.

In most cases, it's best to save 3-6 months of expenses in a separate savings account to cover living expenses.

In fact, there are certain items you can't live without and you must plan for. Start today by calculating the costs of certain items that are important to your lifestyle and set aside cash to make sure you have it when you need it.

Track your net worth

When it comes to money management tips, tracking your net worth is important.

Fortunately, there's a free tool that can help you do this. Personal Capital is a great free personal finance software that helps you manage your money efficiently.

Their software allows you to connect your accounts including student loans and mortgages.

In fact, you can track your spending, savings, and investments. We love using this software because it allows us to manage everything in one place.

Refinance your student loans

Do you have student loans?

If yes, you should think about refinancing them. This is a money management tip that can help lower your monthly expenses and save you money in the long run.

Student loan refinancing is when you apply for a new loan that pays off the old student loans. This is usually helpful when you can get a better interest rate and your credit score is higher than when you initially borrowed the money.

Companies such as LendKey help you refinance your student loans. You can save thousands of dollars by refinancing federal and private student loans with their network of banks and credit unions.

Remember that refinancing your student loans can help you pay off your debt faster and reach financial freedom.

Negotiate better rates

Most services offer different pricing for customers. In fact, there are plenty of services that are negotiable due to the hidden costs and advertisements.

You can save money by contacting your service providers and asking for a discount or new promotion.

Also, if you want to lower your monthly expenses, Trim can handle the negotiations for you. Most importantly, you only pay for the service if they secure you a discount. This way you always come out ahead.

Get out of debt

Having a lot of debt can prolong your journey to reaching financial freedom. Whether it's student loans, car debt, or credit cards, you need to create a plan to get out of debt as fast as possible.

Debt can be extremely stressful but don't worry people get out of debt every day and you can too.

All debt is different and everyone has a different situation.

To learn more about how to get out of debt fast, budget, save money and build wealth, enroll in our free course 7 Secrets to Supercharge Your Finances.

In this free course, you will learn how to create a foundation for your finances that will help you improve your money management skills.

There are many strategies to paying off debt. Most importantly, choose the right approach for you and your family.

Debt makes it hard to save and invest. But, with these money management tips, you can finally start focusing on your future.

What financial goals do you currently have? Which one of these money management tips will help you the most?

Article written by Neiko Johnson
Neiko is a personal finance expert and Co-founder of Secret to Finance. Along with his wife Alexis, they learned how to get out of debt and paid off $400,000 in 4 years.

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