How to Effectively Money Management?
Definition of Money Management
Money management is a miracle word how to deal with your financial situation, expenses. Also, this management type is a very effective tool that can help us to reach forward-looking investment opportunities and achieve our goals.
Money management is not only a tool that can help you also this impressive tool guides you to find success and money.
You want a great profit and make money in big rate, but you don’t know how to money management. Then you probably you can’t be successful in a money management world most likely.
Also growing consumption craze brings a lot of errors in money management. Although these errors not noticed at first, you can recognize it in later periods. However, when you notice it, it can cause problems that are almost impossible to solve.
Long-term money management can lead to unintended consequences when not well planned. In our research, we have compiled how money management should be.
Don’t worry about it you will cope with from this troubles. Therefore we advise that you should read the article.
Also you can read;
We mentioned today for you from;
- Definition of Money Management
- Money Management tips
- Best Money management apps
Money management tips
Also you should watch Tom Ferry;
Don’t spent the money you haven’t
You may think to have earn well and also you may want to buy a car in your dream using credit. However, it may be not a return in any problem for example; health, natural disasters, death, etc. as a result, you can have to sell your car because of debts. Your money may not support this idea.
Therefore the first and we think the most important rule of spending money: you shouldn’t spend your money unless you have a problem. If you use this method, you can block debts and you can make a great plan for your future.
Do not make short-term budget planning in money management.
As a result of a scientific researches, short-term budget planning revealed negative results in many studies.
Within the scope of these studies, annual budget planning was more efficient than the short-term budget and produced desired results. Additional expenditures are made more in the budget estimates. This is because managers do not trust themselves very much.
Credit cards in money management
Credit cards are defined as magic plastic but it is not for everyone. While most people use the credit cards as if his/her neighbor pay the debts. Also, especially women use the credit card as shopping therapy.
To use the credit cards unconsciously may be your end because it is a dangerous invention.
There are many campaigns in credit card edited by banks and these campaigns should not mean that you are shopping.
Especially when you are overloaded with credit cards that have very good installment, you may encounter problems that you cannot get out of. The campaigns of the banks can affect people.
This situation is called acceleration of shopping. If this acceleration is controlled and kept out of plan, undesirable situations may occur.
Borrow or rent but don’t buy
Image how many times you have watched a film you purchased. Books, magazines, party supplies and sport equipment can be rented for a small amount of money. Besides, to rent helps you avoid maintenance problems and prevents you from accumulating unnecessary things. This little trick can help your budget.
We advise that don’t hire directly. However, if you use a good for long time, then you need to buy it. Also, you can take cost analysis with consideration of your usage period.
Pay more for your home loan if you have money
In money management to buy a house is one of the most payments and most of people pay its loan long years. To completely pay the home loan can help a bit get rid of interest payments?
The first five to seven years of interest payments of household loans are generally higher. Lasting your debt early will help you increase your net assets by reducing your interest payments.
Instead of making monthly payments, see if you can make a payment for two weeks. Can you pay 26 for home loans instead of paying 12 in a year? Doing so can save you a lot of money. Some banks pay big fees for the privileges they offer. Contact your bank for renewal of debt.
Instead of making monthly payments, you can make a plan if you can make a payment for two weeks. Can you pay 26 for home loans instead of paying 12 in a year?
You can save you a lot of money. Some banks pay big fees for the privileges they offer. Contact your bank for renewal of debt.
Learn about different investment options
There are many different ways to invest. The more you know about investment tools and possibilities, the better your return on investment.
Don’t gamble with your money if you’re going to deposit or invest money
Many people try to trade on the stock market and earn small gains and lose their individual stocks every day. However, this is an effective way to make money for experienced people, but it’s too risky in money management.
Make long-term investments if you want to make reliable investments from the stock market. It is absolutely is keyword of making money from stock market.
When you choose stock investment you should review the company’s basic principles.
These are (how much cash they have, how they handle product histories, how they treat their employees, and their strategic partnerships). Even if the current share price is worthless, it can be valued in the future.
Also, you can examine the investment funds. Think you have invested all of your money in only a single stock and also think reduce of stock. This mean is ‘’ end ‘’.
If you deposit all your money in almost 50 different stocks your profit loss will not be affected. This reduces the risk.
Your insurance coverage should be effective
Intelligent people know the money management and wait for the unexpected. There they make plans against such situations. You may need large sums in an emergency. If your insurance coverage is strong, you will be easier to handle.
These insurances will help you overcome emergency situations:
Life insurance (if you or your partner die unexpectedly) Health insurance (if you need to pay unexpected hospital and / or doctor costs) Home insurance (unexpected damage to your home) Disaster insurance (earthquakes, hurricanes, fires, floods, etc.)
Close your debts first
Whether you owe a credit card or a home loan, being indebted prevents you from accumulating.
Start with the highest interest rate debt and then try to close the debt of the second higher interest rate loan. Close your debts in order of decreasing interest rates.
Best Money management apps
We have compiled the applications that are one of the most popular personal money management applications for you.
We have listed a great 6 mobile budget app for users interested in money management.
Let’s see these impressive applications;
HomeBudget, which is a paid application on our list, supports Android, iOS, Windows and Mac OS. HomeBudget, which allows you to keep track of your income and expenses, is one of the most important budget applications on the mobile apk market. With this application you can manage your money.
This quality application is easy to use and this application is one of the most successful finance applications in the mobile world. Wally has a different color interface than its competitors. In a money management world this application can help your financial situations. Also, how much money you spend and how much money you spend with whom you can provide detailed information.
This great application that work with your bank account. Spendee allow you and your family work with together to make budget plan. Unfortunately, this money management application only supports Android and IOS.
GoodBudget has a simple interface for users. It also supports to Web, Android and IOS platforms. This effective application is a one of the powerful alternatives for money management.
Dollarbird is a colorful mobile finance applications. It is used as both budget and calendar application.