Being Realistic About Money Management

For numerous individuals and families, particularly those on a tight budget, money management is a vital theme. Referring to areas like budgeting, investing, saving and otherwise overseeing your financial capital, money management is important for both short-term and long-term financial health.

At 1st Choice Money Center, we’re here to help those who have run into short-term money management issues with a variety of installment loans, auto title loans, signature loans and other alternatives to predatory payday loans (which we refuse to offer to clients). These solutions will help get you back on your feet if you’re dealing with limited financial struggles; there are also several money management strategies we recommend to assist you in this area. Here’s a realistic look at money management for those who do not have the widest budget.

being realistic money management

Handling Raises

If you’ve recently received a raise in your income, firstly congratulations! Secondly, it’s time to be smart about how you utilize that money.

In particular, some who lack money management skills have a tendency to overspend based on a recent raise. They assume they have more money now, so why not treat themselves? And while this sort of thing is okay in moderation, too much of it will become a major issue. Rather than turning a raise into a chance to spend more, save your additional money and put it toward future budgeting needs.

Track Your Money

Throughout any area where you budget or utilize money regularly, keep track of your spending, debts, assets and more. This starts with tracking your accounts and other funds through online banking and related methods, but continues with the use of things like spreadsheets, check registers or even newer phone apps that are meant to help you track spending and budget. One advantage of modern technology here is the ability to not only note your past spending, but also lay out how you expect your finances to be arranged in the future.

Use Lists

Speaking of tracking, utilize lists for this and similar purposes. Many of us keep a grocery list when we shop to keep us on-task – this same theme can be applied to numerous other spending areas to ensure you don’t go over budget and aren’t tempted by eye candy at the various stores or locations you enter.

Know Your Triggers

Finally, smart money management involves knowing yourself. Are you unable to resist the urge to spend money at a certain store, on a certain kind of food or in any other setting? Look for the areas and triggers that are causing you to spend above budget, and look for ways you can limit this behavior – whether it’s not going by these locations on your way home, putting limits on certain cards or other tactics.

For more on how to be realistic about money management, or to learn about any of our short-term loan programs, speak to the staff at 1st Choice Money Center today.