Some people are great when it comes to managing their money. They have no issues with making an investment — heck, they probably make tons of investments and enjoy doing so — and they know how to budget their finances so it all works out at the end of the month.
But let’s be honest here for a minute: a lot of people aren’t great at managing their finances. These are the people who rack up tons of credit card debt no matter how hard they try to figure it out; the ones who write out a financial plan for the month but abandon it after about four days. Getting out of debt is impossible because they just keep incurring more.
Sound like you? If you’re unable to manage your finances, the best option is definitely to see a financial consultant who can manage your finances for you. If you’re to stubborn to get help, or if you just can’t afford the cost of a consultant, here a few tips that you can do on your own to manage your money a little better:
- Cut up (most) of your credit cards: Are you trying to reduce debt but you’re struggling to keep your 13 different credit cards organized? Don’t close out your accounts when you’re drowning in debt; this makes your credit score drop. Instead, save one two cards just for emergencies and then cut up the rest of your cards — literally, with scissors or a paper shredder — to ensure that you don’t use them.
- Pay with cash: Most people will spend less money if they have to hand over the money physically; when you pay with a credit or debit card, you don’t really “see” the money that you’re spending.
- Grocery shop after eating: You spend less money on impulsive purchases when you’re not hungry — it’s a fact. You don’t have to clip coupons to save on groceries, but try to keep your weekly shopping bill consistent by purchasing only what you know you need.
So now we’re asking you for some ideas — what are some of your ways to reduce debt and manage your finances?