Skills you need to manage your money

It may seem that everyone around you is spending money like mad and you’re counting the change in the jar. Paying off debt, saving money and getting through a financial setback is a reason well worth it but sometimes you just need a little help, so here are some essential skills to help you manage your money.

Make a monthly budget

Creating a budget may seem boring but in order to be successful you must look at your spending habits and understand where your money is going. Gather all your bills and expenses, including miscellaneous spending and keep track of it all. A budget doesn’t always necessarily have to be detailed, it can be as simple as destroying all your credit cards, invest 20% of everything you earn without touching it and live on the remaining 80%. If this is the route you’re going to take just remember that it’s still important to track your expenses as you can’t change any bad spending habits if you don’t know where your money is going!

Check your credit report

Your credit report is your financial report card. This is how lenders view you. It’s always best to know what’s on your credit report before lenders do. This will also give you the chance to clean up any errors or discrepancies. Review your credit report and make sure all the loans and credit accounts listed belong to you. Confirm all accounts listed as open are actual current loans and balances. People make mistakes and mistakes can cost you money so it’s important to check your credit report at least once a year.

Call around for better deals

Know what you’re paying for your cell phone, cable, utilities, credit card and look around, you may just find a better deal elsewhere. Contact your current service providers and ask them to beat their competitor’s deals. An effective tactic is to threaten closing accounts but be prepared to follow through and change your service provider to one that offers a better deal.

Set a Financial Goal

The future is always more exciting when you know where it will lead. No matter how small, setting a goal is an important process to your financial future. Write them down and refer to them every so often. It makes it easier to achieve your goals when you focus on them.

Occasionally you should reward yourself for successful money management. For more valuable tips and advice, please visit us at www.facebook.com/prudentfinancial