Money makes the world go round. Even if you wish you were not, it is an unfortunate fact of life and one we all must live with. Managing your finances is a crucial part of keeping your life in balance, helping you to stay happy in your work, home and social life. However, sometimes this is less complicated said than done – unforeseen events can quickly sink your bank account, and set you on a path to debt and Financial distress. To ensure you stay on the right track, here are some easy tips for saving yourself money so that you can manage your life’s finances in a healthy and stress-free way.
Always Save Pillows
Of course, we’re not talking comfy sofa cushions here — even though those are fine too. A financial cushion is a pot of savings that you save for a rainy day. It’s best to set this up automatically so you do not forget to deposit funds in it. The monthly amount coming out of your paycheck might do the trick, or have a look several applications available which can use AI to assess how much you can afford to save every month, and set it aside for you. Having a pot you only use in real emergencies ensures you are never short, and that big events will not have long-term effects on your financial health.
Take a Leaf From the Business Book
Businesses have developed many smart ways of managing finances, from small companies to large conglomerates. It makes sense – these agencies must manage and track thousands of transactions from multiple departments every day. But you can use some of their techniques to help with your day-to-day finances. For example, cash flow forecast can help you look ahead and make sure you aren’t surprised by an unforeseen bill. You possibly will not be heading out to that fancy dinner if you remember that you have an enormous annual bill coming out at the end of this month. There’s a lot that individuals can learn from businesses about managing accounts, so look to your own professional practice to become a model – or look online for accounting tips. There are many out there!
Don’t Be an Ostrich
Again, the literal meaning of this is also good advice to follow – nobody wants to turn into an enormous flightless bird. However, in this context being an ostrich means burying your head in the sand and ignoring problems in the hope that they will go away. With financial problems, this never works. On the contrary, the problem tends to grow and get out of control the more you look away, collect interest and debt. It is important to at all times face a problem head-on and as soon as possible, as difficult as it may seem at the time. Doing this will make sure that nothing grows beyond what you can handle, and will let you stay in charge of the situation.
