11 Top Money Management Tips

  1. Work on raising your Self Esteem; To get to a strong sense of your own worth, is a journey in its own right, but it is well worth it. Healthy self-esteem rests on the belief that “I am deserving and worthy”. When you raise your self-esteem, you will find that your ability to manage your money will improve. You will be happier overall because life will become less of a struggle.

2. Start saving for an emergency fund. Even if you only start by putting £10 away a month, you can gradually build up your savings. Ideally your emergency fund should have six months of take-home pay. This will give a cushion to cover that unexpected emergency, a roof repair or new washing machine.

“The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains forethought, and so broadens the mind.” — T.T. Munger

3. Review your insurance cover. E.g. is your buildings insurance enough to cover that natural disaster you worry about? While you can’t predict when something bad is going to happen, you can be prepared if it does. http://www.moneysavingexpert.com is a great source of up to date information.  Money Saving Expert is a great website for up to date information. http://www.moneysavingexpert.com

4. Regularly assess your intentions and motivations. To release your fears you will need to call yourself out.

When you see that a bank statement has arrived or discover a bill hidden in a pile of paper and think, “I can’t deal with this right now,” call yourself out on the moment of avoidance you just experienced. Recognising and rejecting the perceived threat is a strong start to getting on track.

5. Commit to learning: Take time out from social media to learn about money management and investments. For a lot of people, this isn’t easy. There seems to be so much to learn, so start with small things such as reading the financial section of a newspaper or magazine. Don’t try to understand everything, just read it to get familiar with the terminology. Ignore the part of you that wants to run away. Wealthy people are familiar with the money world.

“It takes as much energy to wish as it does to plan.” –Eleanor Roosevelt

6. Get rid of the clutter in your life. Excessive stuff often represents money spent and is given a value in our head, yet if you are no longer using it, or able to wear it, It is just junk.

Clutter keeps you connected to your past. To make way for a positive future, release what you no longer need. This gives you the freedom to get rid of things in your life that aren’t serving you, instead of hoarding them. How often do we keep things for years because we think to ourselves, “someday… I might need this again.” Sometimes it takes releasing something you no longer need to make space for new things to come into your life.

7. Find a financial advisor. They know their stuff. They will help you assess your comfort level for risk. They can help you determine how you might diversify your portfolio across your assets,  choose the sizes of the companies to invest in, ethical or not so ethical, national and international investments and so forth.

Fortune sides with him who dares. —Virgil

8.  Use cash: Paying with cash will help you spend less. We have a different psychological response to using something we have to handle than we do when using plastic, which makes money seem abstract, or one step removed.

9. Being grateful for what you already have leads to contentment. It can be very easy to get carried away by consumerism — so much so that it ruins our ability to think clearly about money and see it for what it truly is — a vehicle to get us to a destination. People who do not practice contentment see money as the destination, and so it becomes a never ending cycle of wanting more and never feeling like the “more” is enough.

Practice being grateful for what you have it is such an important state of mind, it helps avoid stress and anxiety when it comes to money. If we’re grateful for what you do have, you are less likely to want more. Removing the desire for more means you are less likely to splurge on impulse purchases, which in turn can help you avoid draining your bank accounts and overspending on credit cards.

“Money, if it does not bring you happiness, will at least help you be miserable in comfort.” – Helen Gurley Brown

10. To help you not feel guilty about having money in excess, you need to start seeing excess wealth as an asset, that you can put to good use. For example, you can channel your increased wealth to charitable organisations and foundations in areas that you are passionate about.

“The best thing money can buy is financial freedom.” —Me

“It’s good to have money and the things that money can buy, but it’s good, to check up once in a while and make sure that you haven’t lost the things that money can’t buy.” George Lorimer

11. You can do it! 

“If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.” Edmund Burke

Managing money is a skill that won’t appear overnight. You will probably make a few mistakes here and there, and that’s okay!

Remember when money issues arise, you have the power to take control. All you need is the discipline to stay on top of things, the desire to learn, and the self-control to make the best decisions.  Regardless of how many adjustments you make to your financial routine, some or all of these changes can help you have greater peace of mind when it comes to money and your financial life further down the road.

 “Real prosperity is measured as much by how we use our money as it is by how much we have.”

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