ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Financial Planning

Develop Your Money Management Skills

Updated on February 1, 2018
FirozPatel profile image

Firoz Patel is an experienced professional highly skilled at creating and cultivating professional, mutually beneficial relationships.

Introduction

Your money management skills can go a long way in determining how much wealth you generate and how quickly you can retire. The sooner one learns the habits of money management and imbibes them, the easier it is to reach your financial goals. Here are a few tips that can help you build the right financial management skills.

Take Stock of Your Finances and Expenses

First and foremost you need to be aware of your total income. This could be from various sources including interests on investments. Next, you need to record and keep track of your expenses. A good practice is to maintain a record using online tools. It helps to classify your expenses. While it may not be possible to record every single expense, make sure you capture all the big ones and also the recurring ones.

Image Courtesy: alluscu.com
Image Courtesy: alluscu.com

Identify Optional Expenses

Now that you know what your expenses are, you could spend some time reflecting on which of these expenses can be avoided. Even a simple lifestyle change such as not dining out too frequently can help save money. Often times we may be paying for monthly services that we have subscribed to but don’t really use. It is wise to review and optimize such expenses.

Establish A Budget

Once you have a good breakup of your expenses, you can now go about making a budget. Ideally, you should have a monthly budget and you should review it at the end of the month to see how well you stuck to your budget. There are many money management tools available online that allow you to easily get a report on your planned budget vs. actual expenses. While it is great to cut down on unnecessary expenses, it is also good to factor in some unplanned expenses such as a surprise party or a family holiday. Building money management skills actually allow you to have more fun.

Image Courtesy:nearsay.com
Image Courtesy:nearsay.com

Beware Of The Credit Card

Credit cards are great. They allow you to make payments easily and you don’t have to worry about carrying cash. However, the downside is it is so much easier to make unplanned purchases with the card. Hence be wary of using the card and sometimes paying by cash can be a good exercise in self-control especially for the shopaholics amongst us.

Save On Taxes

While most of us are good at saving, many people still do not understand taxes and the best ways to keep them at a minimum. Taxes can cause a huge dent in your savings. There are various forms of investments that provide tax benefits. Read up on them. If you are not very conversant with tax laws and regulations, you could seek consultancy services from a tax expert.

Saving is the good way of keeping your money safer for large and emergency expenses. You can enjoy your hard-earned salary by following the money management skills. Even if you only master any one or two skills, you'll set yourself for saving more money in your retirement.

Comments

Submit a Comment

No comments yet.

working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)