A daily money manager is a good idea if you want to track expenses and regulate them in the process. Software options are available aplenty, but any of these would make you reliant on it in the long run. If you’re looking to be sufficient at managing your monetary affairs the old fashioned way, here are some things you should take care of.
- Payments for bills, loans or borrowings have to be segregated and listed so that you know where your money is going. These are necessities, and you have to pay them out. Then record your credit card balances and payments. List expenses on a daily basis and be accurate, so that you know where every dollar’s spent.
- List all your assets. Your savings account balances, investments, and home equity, and other assets you have like automobile, apartments. Also get your family to track expenditures so that you will be able to view the expenses for the whole household.
- Try to budget your income and expense. When a substantial part of that has been completed, set apart the balance to pay off debts. Keep a portion aside for emergencies.
- Pay off the debts on time and improve your credit score. Avoid interest on credit cards and penalties on delayed payments.
- By now you would have had a clear picture of your money matters. Adopt a cash management plan, including savings in this.
- Have long term and short term goals. As part of the former, first pay off bills on credit card that have lower balances. Savings for your future vacations, retirement fund, etc can all be assigned as long term goals.
- Reduce your expenses and spend some on paying off liabilities. Find new ways to reduce spending: have homemade food, take it easy on fuel recharge, etc.
- Pay cash for expenses instead of credit cards.
- Be true to yourself so it’s easier to get a complete picture of home cash management.
- Have a good savings balance to fund your emergencies like home or asset repair or purchase. When your savings having become huge, make good investments with it to secure your future.
Although a daily money manager brings benefits of its own, the above practices inevitably teach you to maintain sound financial behavior. Your decision making are also starts favoring a financial perspective, and you stay secure money-wise.