Three Money Management and Savings Tips

money management and savings

Three Money Management and Savings Tips

Personal finance is not everyone’s strong suit, and many people struggle to manage their money correctly from month to month. Understanding money management and saving better will give you financial peace of mind. Pivotal Wealth specializes in helping individuals and families become debt free and build their wealth. Following our money management and saving tips will get you started on your way to financial freedom. 

How to Manage Your Finances and Savings

1: Understand The Importance of Self Control

As easy as it is to put all of your purchases on a credit card, it’s just as easy to forget about them. If you’re using a credit card to make regular, everyday purchases, but you don’t pay off your balance every month, that means you’re paying interest on top of the cost for basic items like a loaf of bread or new underwear. Try to limit your credit card spending as much as possible, and use your debit card for purchasing necessities. 

To limit spending on your credit card, start a savings account for non-essential purchases. Saving up will teach you the value of delayed gratification and eliminate unnecessary spending. You’ll spend less money and pay less interest if you don’t allow yourself to make impulse purchases on a credit card. 

2: Track Your Spending and Stick to a Budget

Budgeting exactly how you plan to spend your money from month to month can save you serious cash over time. By tracking your spending you can create a budget that works for your lifestyle and spending habits. With a few slight adjustments, you eliminate unnecessary spending and have some leftover cash in your pocket. 

That extra money can go towards your savings or toward paying off loans or credit card debt. Budgets can help you develop better, smarter spending habits, but can’t be too restrictive. If you view your budget as a barrier that’s keeping you from getting the things you want, you’ll never be able to follow it. Instead, try to balance your spending and save money when you can.

3: Start Saving Now

It’s easy to put off saving money—it’s easy to say you’ll wait until you get a bonus or your next tax return. However, there’s never going to be a perfect time to start saving, you have to just start. No matter how small, any contribution to your savings account is better than no contribution at all. 

You never know when you might need some extra savings to cover a job loss or a medical emergency, to pay taxes, or to complete an unexpected home or car repair. While you may not enjoy having slightly less money to spend each month, you’ll be glad to have that money in your savings when you need it.

Eliminate Debt and Build Your Wealth

Pivotal Wealth helps ordinary people become financially literate and debt free. Our team of experts can help you get through any type of financial difficulty. If you are struggling to manage your finances, or if you are concerned about how to start saving, we can help! Give us a call today to learn more about how you can make smarter financial decisions and start building your wealth.

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Matt Lovelady is a co-founder and managing vice president of Pivotal Wealth. He has launched multiple businesses in the financial services space and is passionate about helping people become debt-free, build their wealth, and plan effectively for their retirement.