Managing your Money: Four practical tips that will help you stay out of debt

Today, we’re going to talk about managing your money. But first, let’s get some basic definitions out of the way. Money is used to measure value and is given in exchange for goods and services. Money can be in the form of coins or notes. 

Gold, real estate, stocks & shares, a deposit in a current account and other commodities of value are also regarded as money. Your money is an important aspect of your life. The amount of money you have can determine what you do, where you, and how you live on a daily basis. 

 

Learning how to manage your money is an important step towards taking control of your life. In order to manage your money properly, you must first understand where your money comes from and where it goes. As this will ensure that the way you manage your money falls in line with the things that matter most to you. 

Here are few ways to manage your money rightly.

1.      You need to understand your income: Know what you earn from your job or business. You cannot manage your financial resources properly unless you have a clear idea of what those resources are in the first place.

2.      Set up a realistic budget, and most importantly, stick to it: Ensure you do not spend more than what you earn and what is in the accounts - Current and Savings.

3.      Actively manage your bank accounts: Some people do not pay attention to what goes on with their bank accounts. Keep records of all additions to your money in the bank and money that you have withdrawn either by going to the bank, through POS transactions, or through ATM withdrawals. At the end of the month, make sure that the account balance which you expect to have based on your calculations tallies with the balance which your bank says that you have. Where you are not able to explain a difference in the numbers, contact your bank for clarification.

4.       Save, save, save: You should have a savings account. Once you have received your salary or any payment due you from your business, make sure that you transfer part of that money to your savings account. You will be amazed at how your savings account will grow every month.

Again, managing your money can help you to be more in control of your life. It can help you to be less anxious about your financial situation. Take on this responsibility start today!

This has been courtesy First Bank as part of The Bankers Committee Financial Literacy Public Enlightenment Programme brought to you by The Bankers Committee, comprising all the commercial Banks in Nigeria and the Central Bank of Nigeria, CBN.

Tell us what you feel about this post here: https://redmediaafrica.typeform.com/to/iHqnKt