How to improve your finances

Moni2402

Active member
Tips to improve your finances

Pay attention to the following tips to improve your finances and avoid unnecessary expenses.

Getting personal finance advice can be a bit confusing as it introduces terms that are not as common. Therefore, the following list is focused on simplifying things and obtaining the best keys to manage your money well.

-Define financial goals:
It is very difficult to get to a place if you don't know where you are going. The first step to managing your money well is knowing what you want to achieve with it. The objectives must be short, medium and long term.

-Identify all your income:
By identifying where your income is coming from, you can put a better value on your time so that you can devote special attention to activities that earn you money.

-Consider eliminating as many variable expenses as possible:
Variable expenses are those that are not necessary to survive. To reduce them, you must eliminate those that do not pay off positively in your life.

-Analyze if you have a positive balance at the end of the month:
A positive balance is that at the end of the month, your expenses are not greater than or equal to your income. To find out what type of balance you have, subtract all of your expenses (fixed and variable) from your income. If you have money left over, it is positive. If it does not have a surplus or is in debt, it is negative.

-Set your limits and learn to tell yourself "I'm not enough":
If any expense or activity is out of your budget, avoid it altogether. The importance of saying "I'm not enough" lies in knowing precisely what are the unnecessary expenses that are out of your budget.

-Prioritize your debts:
A good way to prioritize is by the date they must be met, another way is to prioritize those that will have the worst consequences by not covering them and another way is by those that can be covered more easily.

-Don't get into debt to cover other debts:
If you already have debts, acquiring new ones to pay off old ones is not the best idea. It is true that there are consolidation or refinancing methods, but the truth is that they should be the last options and should be accompanied by a good analysis of the implications.

-Don't get into debt:
The ideal is not to go into debt beyond what you can afford. However, it is quite common to go into debt thinking that you can meet those obligations. You need to keep debt under control and use credit options to your advantage.

-Distinguish between wants and needs:
To avoid impulsive purchases or unnecessary expenses, we must be very clear about what the whims are and what the needs are.

-Save:
Probably one of the most important tips. For you to achieve your goals, you must have the support of good savings that allow you to enjoy it in the future.

-To invest:
To grow your money you have to save. However, depending on your goals and objectives, you should consider putting your money to work taking advantage of the different investment plans on the market.

-Learn constantly about financial education:
Fortunately, financial literacy is an ever-improving topic. To keep up to date it is necessary to be in constant education; not just learn, but reinforce what is already known.
 

Peppul

Active member
Here are also some ideas on how to improve finances.
1. Switch banks. If your bank is charging you a lot of fees or not paying competitive interest rates, you are losing money. It will take less than an hour to research alternative and make the switch.
2. Reduce your credit card interest rate. Paying outrageous interest on your credit card? Call your card issuer and ask for a lower rate.
3. Lower your monthly bill. Comb through your bills and look for things you don't use and drop it.
4. Find your biggest money drain and plug it.
5. Set up a saving or contribution.
 

Dekadet

Member
Thanks for this wonderful write up, I must say that the part where you posted about distinquising between wants and needs really got me, I have been fighting this flaw for a very long time. When I have money on me I keep buying things I really don't need and the worst part is that I only realize that I don't need what I purchase only after I might have purchased it. This has also affected my saving potentials. So my question is how can I imbibe this saving habit and stop buying things I really don't need.
 

Georgeadawara

Active member
There are several ways of improving a finance.
The first thing is how much are u earning monthly,quaterly and you need to have a fixed savings percentag in order to help you to manage your income. Learn how to invest. Looking for another way of income apart of the main income by doing so it can help you to increase your finan
 

Unique23

Member
I have some more tips about improving finance.
1.Control our budget .
2.Don't spend extra money on un necessary things.
3.Save extra money in safe place .
4.Spend your money on necessary things
 

Moni2402

Active member
Thanks for this wonderful write up, I must say that the part where you posted about distinquising between wants and needs really got me, I have been fighting this flaw for a very long time. When I have money on me I keep buying things I really don't need and the worst part is that I only realize that I don't need what I purchase only after I might have purchased it. This has also affected my saving potentials. So my question is how can I imbibe this saving habit and stop buying things I really don't need.
I think that excessive intake is usually related to emotional factors. So reflecting on the reasons that lead you to spend without limits can be a good start to solve the problem.
Everything is learning to have self-control and propose to change those areas that are affecting our finances.
Remember that money gives you options and extras limit you.
 

Roysnickz

New member
Tips to improve your finances

Pay attention to the following tips to improve your finances and avoid unnecessary expenses.

Getting personal finance advice can be a bit confusing as it introduces terms that are not as common. Therefore, the following list is focused on simplifying things and obtaining the best keys to manage your money well.

-Define financial goals:
It is very difficult to get to a place if you don't know where you are going. The first step to managing your money well is knowing what you want to achieve with it. The objectives must be short, medium and long term.

-Identify all your income:
By identifying where your income is coming from, you can put a better value on your time so that you can devote special attention to activities that earn you money.

-Consider eliminating as many variable expenses as possible:
Variable expenses are those that are not necessary to survive. To reduce them, you must eliminate those that do not pay off positively in your life.

-Analyze if you have a positive balance at the end of the month:
A positive balance is that at the end of the month, your expenses are not greater than or equal to your income. To find out what type of balance you have, subtract all of your expenses (fixed and variable) from your income. If you have money left over, it is positive. If it does not have a surplus or is in debt, it is negative.

-Set your limits and learn to tell yourself "I'm not enough":
If any expense or activity is out of your budget, avoid it altogether. The importance of saying "I'm not enough" lies in knowing precisely what are the unnecessary expenses that are out of your budget.

-Prioritize your debts:
A good way to prioritize is by the date they must be met, another way is to prioritize those that will have the worst consequences by not covering them and another way is by those that can be covered more easily.

-Don't get into debt to cover other debts:
If you already have debts, acquiring new ones to pay off old ones is not the best idea. It is true that there are consolidation or refinancing methods, but the truth is that they should be the last options and should be accompanied by a good analysis of the implications.

-Don't get into debt:
The ideal is not to go into debt beyond what you can afford. However, it is quite common to go into debt thinking that you can meet those obligations. You need to keep debt under control and use credit options to your advantage.

-Distinguish between wants and needs:
To avoid impulsive purchases or unnecessary expenses, we must be very clear about what the whims are and what the needs are.

-Save:
Probably one of the most important tips. For you to achieve your goals, you must have the support of good savings that allow you to enjoy it in the future.

-To invest:
To grow your money you have to save. However, depending on your goals and objectives, you should consider putting your money to work taking advantage of the different investment plans on the market.

-Learn constantly about financial education:
Fortunately, financial literacy is an ever-improving topic. To keep up to date it is necessary to be in constant education; not just learn, but reinforce what is already known.
I must comment you for taking out time emurate those vital points. You are so on point. Perhaps, a prudent manager of resources, you are. Financial stability is challenge for most adults. The present Corona virus pandemic has compounded the already precarious situation; hence your tips could be said to have come right on time.
I advise others to follow those emulated tips for financial freedom.
 

Victor001

Active member
A very sensitive topic very easy to say but hard to implement by most of us.
In all discipline is key, your ability to say know to certain demands, request and wants. Taking proper budget planning into consideration, understanding when to spend and to save.
Seeing the value for money as asset not as liability and make good investments.
 

leejay

New member
Thanks for this wonderful write up, I must say that the part where you posted about distinquising between wants and needs really got me, I have been fighting this flaw for a very long time. When I have money on me I keep buying things I really don't need and the worst part is that I only realize that I don't need what I purchase only after I might have purchased it. This has also affected my saving potentials. So my question is how can I imbibe this saving habit and stop buying things I really don't need.
 

Nite

Valued Contributor
Good tips you got there for improving finance and avoiding unnecessary expenses. When struggling with how to handle finances, creating a budget can be very productive. Plans should be made on how to spend money every month based on how much usually we earn and spend. Budgeting can be a great thing to change our future finances.

We can start by writing down all our income and expenses, then subtracting the expenses from the income to determine our spending. By setting up a budget, we can track our spending at each end of the month, and determine whether there is a need to cut unnecessary expenses. Every month we should implement the revised budget, so that we could control and save our money.
 

Donkiz

Active member
One of the best tips to improve your finance is to have multiple means of income. If your income is from one particular source, it might be difficult for you to improve your financial state.

One thing about expenses is that it's hard to reduce. Truth is that most of us don't live expensive lifestyles, we are not reckless spenders, we only spend on what is needed, yet there are no improvement in our finances, we keep eating from hand to mouth despite all our efforts.

The reason why the finances of most of us are not improving is not because we are spending so much, it's simply because we are not earning enough. Until we find a way to increase our earnings, it will be difficult for us to improve our finances.
 

Mishi

New member
If you need help with your finances but aren't sure where to start, seek financial wisdom from books written by experts.
There are many books out there on taking control of your finances, from how to get out of debt to how to build an investment portfolio. Books offer a great way to change your approach to managing money.
 

Kingsley

Valued Contributor
For us to succeed in improving our finances we must acquire financial skills that are suitable for the job. We need a good understanding of financial management to be able to improve our finances. And More so we can aswel contract the service of a professional financial analyst. Then probably on our own we can practise a good habit of savings.
 

Godslamp

Active member
If you are struggling to handle your finances, then you likely need to create a budget; a plan for how to spend your money each month that is based on how much you typically earn and spend. A budget is your best tool to change your financial future.To start, write down your income and all your expenses, and then subtract the expenses from the income to determine your discretionary spending.
 

Alexandoy

VIP Contributor
As opposed to identifying the income what's more important is the identifying of expenses. You can also classify the expenses in the list that you can make. For the occasional or not mandatory expenses like buying a gift that can give you the idea of how to save money on those expenses. Know how to prioritize the expenses regarding its classification.
 
Top