Lots of people find managing their money a challenge. The basic rules of money management are simple but planning and managing personal finances can be complicated as our lives are complicated. Here are a few pointers to help you make the most of your money before pressing that 'Buy' button:
Only buy things you need
It can be tempting when you see something you like but think about whether you actually need it. Will you still be using it in three months? Do you already have something that does the same job?
Avoid borrowing on credit cards
It can be easier said than done but if you cannot afford something it is better in the long run not to burden yourself with additional debt. That two-week holiday may be fantastic but if it takes two years or more to pay off it becomes a less attractive proposition.
Quit trying and impress others
I see so many situations where people buy items not for themselves, but for others' benefit. Next door have a new car, so we need a new car. They have a new kitchen, so we need a new kitchen. If you need something that's fine, but don't put yourself into debt just so somebody else may think better of you. Chances are, they won't anyway.
Save for a rainy day
You never know when you may need emergency funds and you'll be glad you did.
Always look for Deals
Sure, certain retailers may offer next-day delivery, but the item may be two-thirds of the price with another retailer who will take an extra few days to deliver. Shop around to see what is available to you and always look for deals or online vouchers. For certain items, second-hand may be an option. Sure, it may have been used before but it would be around half the price of a new one, or less.
Invest in yourself
If there is something that will develop your skills such as taking a course, do it. It will pay dividends in the future.
Managing money is not an easy task when juggling everything life throws at you, but considering what you want and how it will affect your future will make your life easier and reduce your stress levels in the long-term.
By Steven Douglas
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