Written by Rob the Watergod | 1/20/21

Managing your money should be the first thing that comes to mind when thinking about your finances. Money management helps you know how much you should spend, save, and invest. Unfortunately, this is not taught in school. Most of us learn how to manage money from our parents but the influence of advertising has led many down the wrong path. Starting a business really helps you manage money better because it forces you to stick to your budget. You can apply these same principles to your family and manage your finances like a business. Now let’s get into the 15 ways to manage your money.

1. Investing, Fun Money, Savings

Most importantly, 15% of your income should go to investing, on the other hand, 10% of your income should go to savings, and 75% of your income is the money to take care of your weekly necessities. However, your goal should be to live off no more than 20% of your income. Therefore, giving you 55% of fun money or extra investment capital. Lastly, don’t forget the golden rule “don’t buy it if you cant buy it 3 times”.

2. Collect And Write Down Your Assets And liabilities.

For instance, Write down what brings in you money or has value to you, for example, savings, vehicles, stocks, bonds, etc. Furthermore, write down everything pulling money out of your pocket such as student loans, mortgages, and any other debt. This is how you know how much

you are spending and earning and also will help with balancing your assets and liabilities.

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3. Never Pay Full Price

Most importantly, only buy products or services that fit your budget. If it is too expensive then look for some coupons or ask if there is a discount. Therefore, if there are no discounts then buying it is ok. However, you can also use gift cards or credit cards with cashback.

4. Always Pay Yourself First

You should always put money into your investment or savings account before thinking of buying something. Paying yourself first is important in order to generate wealth. Therefore, making sure you get paid before something is bought makes sure you are earning money.

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5. Pay Off Debt And Stay Debt free

You need to earn money but it won’t help at all if you have debt piling up each and every day. You can eliminate your debts using the snowball method. First, pay off your smallest debt then do your second smallest and keep going up to bigger debts until all your debts are paid off. Once you have your debts all paid off make sure to stay debt-free.

6. Have An Emergency Fund

For instance, get a portion of your savings and put it in life insurance, you can get your life insurance for as low as $25 dollars a month. For example, 6 to 2 years of your monthly expenses are enough to have saved for an emergency.

7. Never Gamble

If you use an investment calculator you’ll know it only takes you $1800 a year on an average successful company in the stock market would get you just above $2 million. Therefore, invest in companies that you like or spend your money on.

8. Avoid Buying Unnecessary things

I know you like to have “stuff” but buying unnecessary things will waste a lot of money. For example, don’t buy another phone when you have one already working. Make sure the product/service is an asset.

9. Get a Credit Card With Great Rewards

When you have a credit card with rewards you get a certain type of rewards such as travel rewards, cashback rewards, and many more. But you have to find one that fits you. For example, if you like to travel you should get a travel rewards card, if you want cash back, get a cashback rewards card. You can find your match at CreditCards.com.

10. Calculate Your Net Worth

For instance, Calculating your net worth may seem difficult, but in reality it’s not. In fact, it’s most likely the easiest step in starting to manage your money. To find your net worth subtract your total debt from your total assets. (Assets – Debt= net worth)

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11. Create A Budget Income vs Expenses

Most importantly, Write down your income you receive in a month. For example,

hourly wage, salary, apps, businesses, etc. Furthermore, write down all your expenses such as rent, mortgage, insurance, student loan payment, cell phone bill, etc. This will help show you how your budget is balanced.

12. Get a hold of Credit Scores and Reports

The first step to getting something corrected is knowing what the problem is. Having a good credit score can save you not hundreds but thousands of dollars. Credit Karma is a company that will give you a free credit score.

13. Calculate Your Overall Cashflow

Your monthly cashflow is how much money you earn in a month. Subtract your expenses from your income (income – expenses = Monthly cashflow).

14. Know Your Financial Goals

You have to know what your financial goals are before trying to accomplish them. As the saying says “You can’t ride without a destination”.

15. Get Financial Coaching and Consulting

Get a successful finance coach. If you need a guide on your journey to success then now is the time to get one. Contact us at info@Thompsonempire.com where Robert Thompson Jr. can give you his coaching expertise in business start-up and investment management. Free consultation.

15 Easy Ways To Manage Your Money