5 Simple Tips to Manage Your Money Smarter

Let’s face it—managing money can be difficult. Before we can even dream of buying that new coffee machine or that nice pair of shoes, we have to set some of our earnings aside for many essential needs, from car insurance to groceries.  That hard-earned paycheck can disappear quicker than we might expect.

It’s easy to see what we need to do; we need to budget our money wisely and implement strategies to save.  The hard part is knowing where to start. Here are five easy ways you can manage your money smarter starting today.

Tip #1: Take Inventory of Your Wants and Needs

The line between our wants and needs can easily become blurry.  Without much thought, we might be spending on things we don’t need. Often, if we take a minute to sit down and think, the line between wants and needs becomes clear.

Some items are essentials, such as home services, and something for which you’ll need to budget. Others, like that new notebook that we won’t ever end up using, are wants that you can hold off until you can afford it.

The next time you’re about to make a purchase, however big or small, ask yourself whether it is a want or a need.  It might feel silly or unnecessary at first, but it is genuinely a helpful tip to manage your money smarter.

Tip #2: Look at Memberships and Subscriptions

Memberships and subscriptions can be great.  Netflix, anyone?  But many of us have more subscriptions and memberships than we need or even use.  

If you take a quick look, you might see that you are spending money on an unwanted service or even several.  So take back that $15/month on that movie renting service you forgot to cancel.

Tip #3: Operate a CD (Certificate of Deposit) Account

You have a savings account. Awesome. How about a CD? If the answer is yes, give yourself a pat on the back.  If you don’t have one yet, keep reading.

Simply put, a CD is a long-term savings account with a higher interest rate than a standard savings account.  After depositing a lump sum (single payment), you have to keep your cash in the account for a set period of time.  When your funds have matured, you can take your money back out.  

Check out some CD rates at banks and credit unions. Do your research.  Your future self will thank you.

Tip #4: Do It Yourself

A great way to save cash is to DIY.  Save on takeout by cooking tasty, cost-effective meals.  Pack your lunch when you can.  Go to Pinterest and try out those boho-style DIY home renovation ideas.

While you can’t do everything yourself, you can always do a little more.  And who knows, you might even have fun in the process.

Tip #5: Review Your Income and Expenditures

Regularly reviewing your bank statements is key to effective financing.  Start a monthly habit, or better yet, weekly or even daily, to sit down and look through your income and expenditures.  Hint: the more often you do it, the less time it will take.

While you review, keep in mind the tips you’ve learned so far.  Are you being thoughtful about your wants vs. needs? Is there a subscription that you don’t want or use anymore?  Are there things you probably should have DIYed?  

Reflect on how things have been going and what you could do differently. Most importantly, take pride in your progress.

Conclusion

These five simple tips can lead to a world of change.  Hopefully, this article has inspired you in your future money management ventures and has taught you something new.  Before you go, here is bonus tip #6: Stay motivated and keep hustling.