We’ve been taught a lot of subjects in school, but personal finances might not be one of them even though they are crucial. There are so many benefits of managing your finances compared to no finance management; the easiest one is that you can save more money from unnecessary spendings. Here we have listed several ways to manage your expenses a lot better and why you should.
Make a list of all your expenses
This is probably the simplest yet most helping way to save your money. Making a list will help you to know what are your costs and also to know where most of your money goes. A simple track of your bills might consist of rent, household bills, groceries, gas, emergencies, and a lot more. After making a list, write down your salary per month, this will show you how much you can save in a month. azoury financial can help you in managing your business expenses.
Tip: professional advisors say to leave at least 10% to 15% for savings, which is possible to do for every month.
Instead of buying, try to borrow or rent
Let’s say that you need a dress for a wedding party or a birthday party, instead of buying an expensive clothing that you’re going to wear once, why not borrow or rent? It is perfect if you can borrow it as you don’t have to spend any money for a one-time occasion. Besides saving money, renting also allows you to keep some space since it’s not yours. The only downside is that you have to return it once you’re done using it.
Tip: if you’re going to use the item for a long time, it might be wise to buy instead of borrowing or renting it.
Start an emergency fund
Having an emergency fund is always an excellent way to save money, this resource that you save can go for anything, starting from medical, technical, utilities, the list is endless. Let’s say that you got sick and your insurance couldn’t cover the medical expenses; this emergency fund can help you pay up the rest of your fees. Or maybe you need to pay for your car that suddenly breaks down, which can cost a lot, instead of getting a loan from the bank you can use the emergency fund to repair your vehicle.
Tip: as written in the previous tip, a small portion of your salary can go to your emergency fund, which can be used for emergencies.