If you want to start managing your money like a pro, then you need to start by creating a budget. This may seem daunting at first, but it's not as hard as it seems. Plenty of online resources and apps can help make the process easy.
By taking the time to create a budget and stick to it, you'll be amazed at how much easier it is to stay on top of your finances. And over time, this will help you build wealth and achieve your financial goals.
Sit down, open a spreadsheet, and record your income at the top of the page. Now, open your bank statements and credit card bills, and list everything you spent over the last calendar month. Then add up your expenses.
How does it look? Did you spend more than you earned? Or do you perhaps have some money left that you can save or invest? Either way, create a new list of expenses. What are you anticipating spending in the coming month?
Cutting down your expenses is where true future freedom is born. Having the discipline to spend less than you earn should be your number one priority. So go through your list of budgeted expenses with a fine comb.
Perhaps you have an allowance for coffee for the week. If you purchase two cups at Starbucks today, you might need to cut down for the rest of the week. And recording your daily expenses helps you to stay within your protective limits.
One of the core principles of wise money management is to allow your money to work for you. You need to build up assets. The opposite of this is to build up liabilities that cost you money. So, please don’t incur any new debt.