How to Manage Your Money

Saving money has been my only resolution for this New Year. While I have been struggling financially for the first two years of my job, I have lately realized that saving money is a habit, that needs to be developed by working upon it, consistently. Frugal living has its own benefits and it is not a dull idea to spend some months living frugally, managing finances and trying to save some money.

How to Manage Your Money in College

During college years, students have to survive on a minimum monthly financial funding and so learning to save money in college is essential. Some money saving tips in college are as follows.

• Plan your budget well before in advance. It is essential to set aside some money that you will keep for any urgent requirement. You must know your basic expenses and so you should try to ensure that any extra penny is saved for the next month.
• If you have a part-time job, don't spend all the money splurging. While you must enjoy spending your hard-earned money, try to deposit a significant portion to some savings account or a piggy bank.
• If you can't resist the temptation to spend your saved money, give it to your parents for keeps sake. You can take the money, later from them, if required.
• Invest more, in things that are necessary and important for your career. If you have to choose between going to a movie and buying a book, choose the later, as it is a priority for you right now, in your career.
• To learn the art and science of money management, you need to put a check on spending habits like eating outside frequently and shopping even when you don't necessarily need things.

Ways to Manage Your Money

• Chalk out an action plan, allocating some specific budget to each of your expenses like cell phones, restaurant bills, traveling, vehicle fuel etc. You can be a bit flexible in budgeting as sometimes, the allocated budget can exceed.
• Try to limit the use of credit cards. Purchasing through credit cards is although easier, it can lead to debt, if you're unable to keep a record of where you're spending the money.
• Invest in sources where there is a possibility of profitable returns. This may include anything like a savings banks account, fixed deposit account, stocks and shares, mutual funds and other forms of investments.
• Using energy wisely can be one of the greatest lessons you can learn about saving money. Right from electricity to fuel bills, everything leads to high budget, so ensure you use them wisely and save money.
• Although, we don't realize that we spend a lot on eating outside, it is an integral component of learning how to manage money. Put a break on habits of eating outside and eat food cooked at home.This can drastically cut short your expenses and is also beneficial for your health.
• Whenever you get hold of any money saving idea, do make it a point to note them down. It will help you in making more effective money saving strategies.
• In case, your house is over stuffed with things and unnecessary furniture, sofas that you don't use, it is good to sell them, to make some money. Many people keep two to three cars, even when there is no use of it. By selling the old cars in auctions etc, one can earn a decent sum of money.

These are some simple tips on how to save money fast. Remember that managing your money is your own responsibility and therefore, if you're not working towards saving, you may not be able to secure your financial future. One of the most important tips on managing your money that comes handy in budgeting is to maintain a log book in which one should record daily expenses. This will give an individual a clear idea on how to manage money wisely.