When it comes to money, we more than often read or hear the words “financial tips” and “financial management”.

And let’s face it, we all have busy lives and sometimes money does affect us in a stressful way, and we know what happens then, especially if you are a woman – all we want to do is some “retail therapy”.

That is when the words “financial tips and management” are the last thing on our minds.

But the reality is that if we want an easy life without too much financial stress, we have to develop good and strong financial habits.

However if you might be thinking now that once you have good financial habits it is going to be real easy, or as they call it “plain-sailing”, you are slightly wrong.

Manage your money the right way

By managing our money in the right way, it allows us to prepare and cope with the unexpected “blows” that life will throw at us – for example a burst geyser when you least expect it.

So how do you start to manage your money effectively?

1) Talk to the right people

Having a goal or lifelong dream is probably the best motivation you can have to start managing your money effectively.

Maybe you want to travel or you want to further your studies in order to get a better job. Something that is important to you, and involves money will require good money management.

So there you have it.

It is a fact – money is a big part of our lives, and our financial success is all about replacing our bad habits with good ones.

If you want to take control of your life, you need to learn how to manage your money the right way.

In the end it is about understanding where your money comes from, where it is going and that you manage it in the right way according to your lifestyle and needs.

2) Make a list of your expenses

Okay, this might be a difficult one for most of us, and it’s probably not something we like to do.

But you are reading this article, so it basically means that you are willing to try anything.

If you are not one of the few people that actually keep track of their spending, then it might come to you as a shock once you see it in writing.

When you write down your spending habits, you might notice that you are spending way too much on things like clothing, eating out etc. and too little on the things that really matter, like investments and debt you’ve made.

Think of ways that you can cut down on your spending’s – this will be a great start to effectively manage your money.

3) Know How & When to use a credit card

The credit card – isn’t it just so easy to use, perhaps sometimes too easy?

A credit card can sometimes be a blessing (if you absolutely don’t have cash with you) and also a necessity (when you must use it to make a purchase where for some reason you need to pay with a card). One thing that we must understand 100% is the fact that with a credit card comes high interest rates, which you should be able to pay every month.

You often hear people say, that you should get rid of a credit card, but the truth is that it simply is not that easy.

So what if you feel that the responsibility of a credit card is too much for you to handle?

There is one thing you can do. Draw a set amount of cash at the ATM. Make that your spending money. Remember the saying that goes “when it is finished, it is finished”; keep that in mind when working with your spending cash.

There is a difference between swiping a credit card and working with “real” money in your hand.

The motivation you need to control your spending usually comes from working with ‘real” money.

4) Paying your debt

It would be wonderful if we could all just avoid having to pay bills, don’t you think?

But unfortunately for us, the real world is not that simple.

robert kiyosaki

“Bad debt is debt that makes you poorer. I count the mortgage on my home as bad debt, because I'm the one paying on it. Other forms of bad debt are car payments, credit card balances, or other consumer loans.”

Robert Kiyosaki

We all have to pay debt sometime in our lives. So the best thing you can do is to prioritise your debt and if it is possible to try and pay more than the minimum amount at the end of the month.

Remember that the longer it takes for you to pay off your debt, the more interest you will end up paying.

5) Keep record of your expenses

Admit it; this is something that not all of us do.

If you are not keeping track of expenses it is a bad habit that you need to stop, especially if you want to manage your money correctly.

Whether you use a file or your computer (in the form of scanned documents), it is very important that you keep expenditure and income documents, as well as important bills that needs to be paid.

6) Beware of making impulsive buying decisions

It happens to all of us, that moment when you see something and you really, really want it.

The real question you should actually be asking yourself is;

Do you need it?

Some good advice would be – do not buy it immediately.

Rather wait a few weeks, go back and look at it again, if you still want it  after a period of time, then it would be acceptable to buy it, however experience have shown that in the most cases, you will have lost interest over the time period of a few weeks. Believe me, you will be grateful for the money you save by not being impulsive, because at one time or another there will rise a cash emergency where that money would come in very handy.

7) Start saving

I will start saving next month.

Does that sentence sound familiar? It sure does, but something you should remember, is that if you keep putting something off, it is likely never going to happen. And if there is something we should all avoid, it is putting off the task of starting to save.

Whether it is in the form of a savings account or a little box you keep hidden away safely.

Try and set aside a certain amount each month, no matter how little it might be.

You can never start saving too early and every little bit helps.

8) If you can, avoid taking out a loan

Nowadays it is so easy to get a cash loan if you need money.

In a matter of minutes you apply online for a cash loan, and if you lucky, you could have the money the same-day.

Sounds easy & fast.

Avoid loans & paying interest

Why don’t you rather borrow the money from friends and family, the good news is that they probably won’t charge you interest on the loan. But wait; want to hear the best idea to totally avoid taking out loans or borrowing money?

Start thinking of creative ideas of what you could do to make some extra money.

Perhaps you could get a part time job, or better yet – start your own business from home.

9) Invest wisely

Having a savings account is great if you want to save money every month.

But have you thought about investing your money?

There are lots of investment options out there; all you have to do is choose the right one for you.

And the great thing about investing your money is that you get paid back with an extra amount in the end. Remember investing might not be for everyone, so make sure it is the method you want to follow.

10) Having a goal

Having a goal or lifelong dream is probably the best motivation you can have to start managing your money effectively.

Maybe you want to travel or you want to further your studies in order to get a better job. Something that is important to you, and involves money will require good money management.

So there you have it.

It is a fact – money is a big part of our lives, and our financial success is all about replacing our bad habits with good ones.

If you want to take control of your life, you need to learn how to manage your money the right way.

In the end it is about understanding where your money comes from, where it is going and that you manage it in the right way according to your lifestyle and needs.