“Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
And Broke Again!
Yeah..the story of every millennial these days.
Many of them blame it on their jobs or their low pocket money. But being broke honestly has nothing to do with any of these. Yes, a high-paying job or your name in one of your dead relatives’ will isn’t helping if you have been broke for what feels like an eternity.
To help yourself from being broke, you just need to manage your expenses better. Why not cut on that extra beer or fries that would be a clear waste?
For most of us, better money management would come from better investments, smarter expenditures, improved ability to invest and save and achieve the financial goals that once were an issue.
All seem like a bluff? Well, to be honest, it is not!
If you think you will never be able to meet your financial goals, then Relax. Here are a few personal expense management tips to help you create a win-win situation.
Expense Management Tips to Create a Better Financial Situation
Know Where You Spend for Wiser Decisions
You can resolve a problem only when you reach its roots. To ensure you are spending wisely, know where you are spending your money. Note down your expenses, and you’ll find out ample space for improvement there.
Spending awareness is the key to managing your expenses the right way. You can check where you’re spending on non-essential dine-outs, online shopping, entertainment, and even that cup of coffee that you sip ”n” number of times a day.
Maintain your daily expenses in writing to affirm you can review them when you can. A few months of practice, and you’d be in a win-win situation.
Tip: For the first month, be a little conscious, note your expenses, and continue. End of the month, check if your conscious spending has helped you save something.
You can surely not cut down your expenses suddenly, but one step at a time is a great possibility.
Create a Realistic Budget for the Month
The best way to control expenses is to create a realistic budget plan. Consider your spending habits and take-home pay to set a budget that you can stick to. Include everything here. From necessities to luxuries to just like that stuff.
You need not start living that miserable life where you compromise with your small luxuries and leisure. Just smart spending to save a little. For example, if you have 6 cups of coffee a day, take the number down to 4. Simple!
Little cut-downs can help you save unexpectedly.
Remember: Create a budget that aligns with your spending pattern and lifestyle. We aren’t looking for a solution that makes you compromise with your lifestyle, we are looking to weeding off the unnecessary expenditures.
Also, budgeting doesn’t only mean striking off your expenses, it does include building new, better habits. Suppose you decide to cut down take away twice a week, cook yourself something that you love. Initially, it is going to be a challenge, but gradually it will be fun, and if you’re friends sticking to the idea you can use it as a bonding exercise.
Save, Forget, and See the Magic
One financial mistake that most people make is not focusing on the “Emergency Fund.”
Yes, you may not have considered it yet, but it is an important aspect. Since you have an earning, no matter how little it is, a part of it needs to go to your emergency fund that you can dig from when needed. (Not for fun but for urgency!)
You can follow a 50:30:20 rule here.
50% of Your Income: Use for necessary things like accommodation, food, bills, etc.
30% of Your Income: Use for investments and entertainment like buying subscriptions, eating out, ordering online, investments etc.
20% of Your Income: Keep the rest amount as your savings.
No matter how much your income is, if you aren’t able to balance the above equation, then you surely need to reconsider the part that lags.
Do Not Touch the Savings Part!
Pay Bills on Time
This is one of the most underrated budget management practices that we need to stick to. Most of us have our rent cycles, bills, scheduled around our payday. If you try to drag it to the last due dates you’d have spent the money on things that weren’t a priority.
Once you are free from the compulsive payments of the month, you can further adjust your budget to fit your needs.
I have struggled with this a lot, and it is personal advice, once you’re done with the compulsive payments for the month, you feel richer.
(Just don’t squander what is left in the account)
Review Your Subscription Plans
So, you have a few recurring subscription plans that cost you a few bucks every month? I know, why cancel them, it is just a few bucks!
But these few bucks by the end of the year do amount to something. If you aren’t a regular user of some application or scheme that accounts for recurring deposits, simply discard it. I know there is no loss when you are already investing a lot, but saving a little is better. We’ll fill the pot with a drop at once.
If You Don’t Need It…Don’t Pay for It!!!
And thank me later when you see your account flowing with money. **Wink**Wink**
No Debt Policy
Have debts on you? Then you leave me with no choice but to say this, “Live your life like a miser for a month and clear all your debts.”
This is how the payday cash advance apps are actually confusing millennials these days. You take debts from these applications, pay them back and by the end of the month again you’re out of budget.
This is a vicious cycle.
Once you are debt free, you can surely move forward with a better and more resilient solution.
This is all you have to do and see how your money comes flowing to you.
Seems like a hectic plan? Well, let tech take charge.
Confused? Don’t be, We share here some of the best personal expense management applications that can help you in this money management journey of yours.
A lot of fintech app developers now see personal expense management apps as one of the most profit-generating ideas.
Best Personal Expense Management Apps in the Market!
- Mint: Best Free Expense Management Application
- YNAB: Best Application for Those Looking for Serious Budgeting Options
- GoodBudget: Best Personal Money Management Application for Beginners
- Marcus Insights: Best App to Manage Your Money and Track Cash Flow
- Wally: Best Personal Spending Tracking Application
Mint: Best Free Expense Management Application
Coming from the best fintech app developers Mint helps you manage your personal expenses by sharing a detailed monthly expenditure report with you. This is an amazing solution if you want to start investing in a side hustle and grow better. The app offers a free version and is in collaboration with all the leading banks and lenders in the market. You can manage your expenses, bills, credits, and cash flow here.
YNAB: Best Application for Those Looking for Serious Budgeting Options
This is one of the best applications that help you manage and control your debt. If you are one of those who look forward to payday advance cash applications to sail through the month, install the application today and see how it saves you from taking any debts.
The application lets you spend only as much as your income. Thus, the chances for debt is really less here!
GoodBudget: Best Personal Money Management Application for Beginners
Another personal expense management application that can help users manage their finances. You can check for the cash inflow and outflow and the places where you have spent the money. If you are looking for a budgeting application that can help you track penny-by-penny expenditures, then this is the app for you.
Marcus Insights: Best App to Manage Your Money and Track Cash Flow
With an easy-to-navigate and understand feature set the application is gaining popularity among youngsters who need assistance with managing their finances. One need not put in efforts to segregate their expenses. The application does that for you easily.
So, if you have recently started earning and can’t manage the cash flow, this is the best place to know to manage your expenses.
Wally: Best Personal Spending Tracking Application
Another colorful app with great expense management capabilities. So, you have tried with all your commitment to stick to the plan, but it failed.
This app is exactly for you. All you need to do is simply register to the application, upload your receipts, and let technology take care of the rest.
A lot of applications can help you keep your expenses under control.
Wrapping It Up!
Managing expenses seems a far-off dream?
Simply stick to the tips discussed and if it feels difficult, login to any of these applications that can help you manage every penny in your pocket. Managing money is always much more difficult than earning money. Persistence is the key to success.
All the best with your new habit. I hope you’ll be saving and managing the right way!