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How To Manage Money

Updated on October 22, 2011

We all love to spend, now don’t we? Once we get money in our hands we just can’t stop ourselves from spending it. I mean who would like to buy a cheap hamburger when he/she has enough money to buy a steak? It is nothing but natural and true in almost every case.

On the other hand we all also want to save our money and dream of having a lot of money left by the end of the month from our income. However what people mostly do is that either they spend a lot or they don’t spend at all.

It is easier to go to the extremes but it is very difficult to maintain a balance. Similarly it is very easy to either be a miser or a spendthrift but it is very difficult to manage your money in a way that you spend as well as save.

Managing money is not easy; it is an art that needs to be learned. Wise decisions, strong will and a control over your money spending desires is what managing your money requires, and it is, indeed, not easy at all. But once you put in the right effort and determination, you can make it easy for yourself.

The extent of the management required depends on your income. If you earn less or are a college student it is a bit more difficult to manage the money. Following are few tips as to how you can manage your money whether you are a student or a full time worker living alone:

Always Make A Budget

Now that is something really important. You can not manage money without making a proper budget. Make a budget depending on your income. Make sure that your budget is reasonable and make it in a way you end up saving some money by the end of the month.

Avoid Extra Expenditures

We all have the tendency to get carried away and to spend more than what is actually required.

It is a common observation, that usually when you out shopping groceries in a supermarket and you have extra money in your wallet you buy extra things that you buy only out of desires rather than your need. Avoid that. Stop spending money in things that you don’t need. 

Find Alternatives To Spend Less

The best way to spend less is to find alternatives for everything. If you are a student, avoid eating out, rather pack lunch from home. Instead of buying books, use the library. Try to buy things when they are in a sale.

Set Your Priorities Right

It is important for you to set your priorities. You should where it is important to spend the money and where you can manage without spending the money. Spend the money on the things that are important like bill paying the purchasing of necessary items. Do spend money on entertainment as well. But try spending less there and more for important tasks.

Save By Using Less

Try to save money by using less of everything. This would mean less purchase of the products, hence saving you money.

Sacrifice Smaller Things For Bigger Things

They say to get something you need to lose something; and they are right. If you want to save your money for something good you need to sacrifice many smaller things for that.

For instance if you wish to buy an ipod by the end of the year and you intend to save money for it you also need to cut down you expenditures to a great extend. It means o extra eating outs with friends, no extra shopping and no extra expenditure of any sort.

Literally Save Money

Save money in safe or in a box or anything. The easiest way to save money is to make a box and start making a daily addition of money in it. By doing so you would end up saving a large amount of money.

All the above is perhaps easier said than done, it is very easy to make plans but executing the plans require effort on your part. Don’t just sit and plan get up and put the plan into action. Start saving from today and manage your money well. You might never know what future has in store for you.

Some Important Money Management Principles


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    • meharkarim@hotmai profile image

      meharkarim@hotmai 7 years ago from karachi