5 Tips for Managing Your Money Better

Among all the get-rich quick schemes you see on the internet, all the offerings and promotions that companies give you and all the clever advertising aimed at making you believe if you do this and that, you can save money, you start to wonder what really works.These ideas may work for some but there are better and more logical ways to save and manage your money.

Read through the following suggestions and you see if you can apply any of these ideas to your own business and personal finances.

1. Make an Emergency Fund

Whether it is a piggy bank in your room, a mattress full of cash, or the more traditional bank, every person should have an emergency fund. You need to have a little cushioning in case of a lull in the industry or in your checkbook. A few funds put away somewhere safe can help in case you need to make a large purchase or disaster strikes and your insurance provider cannot provide you with a settlement right away. You may not have as much income left over after you make a payment into a savings account, but when your company’s future is on the line, you won’t be sorry you did.

2. Always, Always Budget

You remember how your mother would tell you that you couldn’t have that new toy or an expensive piece of clothing when you were younger because it “wasn’t in the budget.” She wasn’t trying to make you go without, she was trying to keep you with things like food or shelter. Moms are smart like that. But she had a point then that you should still apply to your money. You have to have a budget that includes costs, profit, sales, and payroll otherwise you could end up losing money very quickly.

3. Pay Your Credit Card Debt

If you are making minimum payments or using other cards to pay the minimums of other cards, you are playing a dangerous game. Try to find credit cards with low interest rates or at least features that you apply toward your business like flyer miles or gas points. If you have multiple cards, try to pay at least one or two off at a time. Have a credit card that is only used for business and never use it for personal reasons. Credit can be a great thing for a business or for those looking to buy a home or car, but it can quickly overtake your life if you aren’t being diligent with payments.

4. Luxuries are Rare

Everyone has those moments when you see an item or a service that you just have to have. The reason that things are called luxuries is because they are expensive and they aren’t meant to be enjoyed everyday. They’re a rarity that you reward yourself with, like a spa day or concert tickets. Everyone has his or her little indulgences but if your guilty pleasure is an expensive one, learn to go without it for longer, when your budget (see Rule #2) allows it.