How to Manage Your Money Successfully

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How to Manage Your Money Successfully

Written by Kale Havervold
Fact-checked by Caitlin Wood

How to Manage Your Money Successfully

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Money Money Management Personal Finance

Wouldn’t it be great if there was a magic formula you could use so that you never have to worry about finances or money ever again? Unfortunately, that doesn’t exist. Thus, each and every person is in control of their own money management, no matter how much or how little you actually know about the subject matter.

The problem is, there are many things in life that can inhibit your ability to budget your money and manage it in a way you wish you could. These can include large debts, financial emergencies, a low income, and countless bills.

Click here to learn how to get out of debt fast with a low income.

In this article, we will take a look at several managing money tips to help gain control over your finances. Whether you want to learn how to save more money or learn how to budget your monthly income, this article should be of some assistance. While it won’t cover each and every tip under the sun, this article can help you manage your money more successfully.

The Primary Money Management Concerns

In general, there are three main concerns when it comes to money management. Income (your ability to make more money, which can make your finances less stressful), debt (the more debt you carry, the harder it will be to manage your money) and savings (your ability to save the money, handle emergencies or make purchases without any trouble).

Income

Constantly Educate Yourself To Be A More Competent Employee

Everyone would like to make more money. The most common ways of doing that are to move up in the ranks from your current position, negotiate for a better salary, or switch to a new job entirely. In order for any of these things to happen, you need to make yourself a more competent employee.

Are you a new Canadian resident? Read this to discover the documents you need to find a job.  

You can do this by working on your skills and educating yourself throughout your adult life. For a lot of people, education stops after high school or college, when it really shouldn’t. Getting new certifications or degrees can help you rise up in the ranks of your job, on your way to making more money.

A new degree is just one of the 8 things worth breaking your budget for.

Take on a Side Job

If you are having trouble finding a better full-time job or moving up at your current position, it is always an option to get a side job. A side or part time job is normally only for a few shifts a week, but can often net you another couple hundred dollars every payday. This can be anything from working at a restaurant to driving for Uber.

Thinking of becoming an Uber Driver as a way to make more money? Read this.

Try To Make Some Money Online or Sell Things

If you don’t want to or can’t find a second job for whatever reason, there are still other ways to make money. Try hosting a garage sale or selling some of your items over the internet, or in the classifieds. Most of us have too much “stuff” and selling it can help you make more money from time to time.

Click here for 10 more Side Hustles that won’t ruin your weekend.

Don’t Be Afraid To “Job Hop”

Gone are the days of an individual working at a single company for their entire professional career. In fact, most people will go through multiple jobs during their working years.

What’s the main reason for this, you ask? A rise in basic income. It can be much easier to make a higher income via job hopping than to wait for the small raises provided by one company over the course of your career. While you shouldn’t be hopping every few months, getting a new job every few years can often be a good way to climb the ladder to a higher income in a faster manner.

Check this out to learn how you can live without a steady income.  

Don’t Let a Rise in Income Lead to a Rise in Spending

While it’s always great to earn a higher income, doing so can also come with a few risks. One of the biggest risks is that your spending will increase with your income. It is very common that when someone starts making more money, they begin spending that money on things they don’t need. This means they won’t end up saving as much as they could and can find themselves in more financial trouble than before. Therefore, when your income rises, you should look to keep your spending to a minimum and try to increase your savings instead.

Debt

Create a Plan of Attack

Dealing with debt is not easy, so you need to have a plan in place. Lay out all your debts, decide which ones to work on and how you want to go about fixing them. The strategy you choose is totally up to you and will depend on your unique situation. The important thing is to have a plan in the first place, as trying to eliminate debt without one can be difficult and result in confusion.

Trying to pay off your debt? Here are some steps to avoid.  

Eliminate The Highest-Interest Debt First

There are many options when it comes to how you pay off your debt, but you should always look to attack it one account at a time. This will keep you focused and can make your debt easier to handle than it would be if you tried to pay off multiple accounts at once. As for how you should pick the debt to tackle first, it should be the one with the highest-interest, as that debt will cost you the most in the long run.

Shopping for a low-interest rate? Consider this.

Seek Debt Relief Help If You Need It

Dealing with and paying off debt can be tough for some people. Some can handle their debt, while others feel they are in over their heads. If you find yourself treading water and cannot deal with your debt, there is no shame in asking for help. There are many options for debt relief out there from debt consolidation, debt settlement, bankruptcy, and credit counselling.

How can a credit counselling agency help you? Read this to find out.

Stay Committed To Staying Out of Debt

While you can get help in terms of debt relief, the way you choose to get out and staying out of debt is ultimately up to you. Without hard work and lifestyle changes, you could find yourself stuck in an endless cycle of debt. You need to educate yourself and remain committed to the cause of staying out of debt. True, there are going to be obstacles to overcome and expenses that tempt you. However, it’s important to be strong and adhere to your plan of staying out of debt. It can be a tough and time-consuming process, but it will be worth it in the end.

For more information about credit and debt counselling, look here.  

Savings

Have a Budget and Stick to It

When it comes to saving money, having a budget is essential to your success. A budget is basically when you track your finances every month so that you know where every single dollar is coming from and where it is going. By doing this, you’ll discover the areas where you are spending too much.

Whenever people have trouble saving money, it generally comes down to them not knowing how much they are spending on certain things, because they don’t keep track of their expenses. Having a budget of your monthly income and spending is the first step anyone who is looking to acquire better money management skills should take.

Click here to find out how you can create a budget to reduce your credit debt.

Automatically Transfer Money to Your Savings Account

This tip is great for those who have trouble remembering to save money or to transfer money into their savings account. By automatically having some money go into your savings account every week or every month, you can ensure you are saving money without actually doing a thing. A common time to set up an automatic transfer is the day after you get your paycheck. This way, you will never need to worry about transferring money that isn’t there.

For a guide to automatic savings and automatic payments, read this.

Reduce Spending Anywhere You Can

Saving money is sometimes as easy as eliminating various your bills or reducing spending any way you can. While there are some bills you might not be able to eliminate, such as your rent, power, heat, and water, many of the other expenses you have can be reduced or eliminated entirely.

Think about considering a cheaper phone plan, and using an application like Netflix or Hulu instead of spending more on a cable package. Also, there is a good chance you are eating out or shopping more than you need, both of which can be very expensive if they’re not tracked in a budget.

Most of these expenses qualify as “consumer debt”.

Set Savings Goals

Setting a goal for your saving can often yield a better result than simply saving without a goal. Having a goal can motivate you to save more, just as it can motivate you to do other things, such as eat healthily or lose weight.

Trying to get fit on a budget? Check this out.

A common goal for people is to start an emergency fund (which should generally be 3-6 months worth of expenses) to make sure they can last through any financial issue they come across. Other people might have a goal of buying a home, seeing their net worth reach six figures, or buying a car. There are no rules when it comes to the financial goals you set, as long as they help you save.

In his over six-year career as a professional writer, Kale has focused on writing about finance, technology, cryptocurrency, entertainment, and sports. Kale's work has been published on Yahoo, RentHop, the Regina Leader-Post, LoansCanada.ca, and ReboundFinance.com. Kale loves to create a wide variety of personal finance-related content. Including everything from how-to guides to featured articles, to advice pieces and everything in between. Whether he’s writing about the newest piece of technology or providing tips to help people with their finances, Kale is passionate about educating Canadian consumers and making sure they have the information they need to make the best decisions.

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