What Money Management Tips Have Worked For You?

[Maria2]

The best money management tips that have worked for me are:

• Redesign your life according to your income
• Make a budget based on the rule of 50/30/20

One of the major reasons why people get into debt is that they are spending more money than they are actually making. A simple way to avoid getting into debt is to maintain your lifestyle based on your income starts. This does not means you should spend all of your earnings, you should only limit 50 percent of your income to your necessities like food, rents, bills, etc. Remaining 50 percent should be divided between your wants and wishes and saving. You might want to buy new clothes, new gadget, etc. so this spending should be limited to 30 percent. You should save 20 percent of your income. Once your funds build invest some portion of it into stock market and keep some portion of it in the emergency funds.

 

[andrew1]

I prioritize budgeting to track my income and expenses closely. Automating savings helps me build a financial cushion effortlessly. I avoid impulsive purchases by waiting 24 hours before buying. Investing in index funds diversifies my portfolio with minimal risk. Consistently reviewing my financial goals keeps me motivated and on track.