Two Strategies For Managing Your Money

When it comes to finding the perfect strategies for managing your money, then you need to know there is no perfect way to go about this so stop looking for silver bullets or magical formulas because you will never find them. The best budget of them all may actually be not having one at all, which is referred to the ‘anti-budget’. Read on and discover some of the weird, yet worthy strategies for managing your money and you never know you might just come across an eccentric approach, which works best for you.

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The Anti-Budget

The entire process of budgeting may be a little awkward, or let’s say burdensome – as this is a better form to put it. It involves:

• Tracking

• Itemising

• Classifying

This is done with every penny you spend and usually makes you feel tedious. However, it should not come as a surprise to you when you hear that budgeting is somewhat similar to dieting, as both have low long-term obedience. It is something that people remain excited about during the first one or two weeks, but the excitement soon wears off and the individual becomes busy. They are usually distracted by other things, which cause them to forget.

Cutting the Imitation

If you simply go for cutting the imitation and grip a budget that you will stick to, you can go for the anti-budget. This procedure involves skimming your top savings and handling the rest in a wild manner. You need to spend without considering how much you have already blown away on restaurants or concert tickets. Below are the three rules regarding strategies for managing your money:

• Your savings

• Your bills

• Never having to live beyond your means

Regarding your savings, this includes:

Debt payoff

• Investments

• Retirement

• Cash savings

There are no exceptions from these and they get pulled from the top first. Your bills include:

• Mortgage/rent

• Insurance premiums

• Utilities

• Fixed costs

These get paid second. Number three is that you never live outside your means even if this entails you to use debit as an alternative to credit.

This is it, and no tracking is involved. You no longer have to worry about your clothing budget being $35, and you spending $43. Every can of dog food and every tube of toothpaste do not need to be line-itemized in order for your strategies for managing your money to be successful. You simply need to pull your savings from the top, pay those bills, and spend the rest in a guilt-free manner.

Saving Strategies for Managing Your Money

You need to ask yourself how much you need to be saving. As a bare minimum, 20 percent is recommended. This includes 12-15 percent into retirement accounts with the rest being cash savings for the following:

• Emergency funds

• Savings for children’s teaching

• Preparing for holidays and vacations

• Savings for big-ticket consumptions

If this seems like a lot for you, then you can consider boosting your savings rate one percent each time. If you are carrying a debt, then the best strategies for managing your money would be to save twenty percent of your income. This should be used to hasten your debt payments. Minimum payments on debt count as bills whereas payments over the minimum, count as savings.

The Live-On-One-Income Budget

Another one of the unusual strategies for managing your money is living on one income. This is easier if you are part of dual-income couple. You may all of a sudden throw a protest of how impossible this is, as you both need incomes, but one thing you must do is test that statement. Yes, you are right as you may need the two incomes in order to continue your present lifestyle, but if you went for a smaller home, then what happens? Or, if you went out for dinner less often? Additionally, what would happen if you went for a vehicle that’s more fuel-efficient or a least expensive haircut? Instead of focusing on why this one of the effective strategies for managing your money will not work, why not ask yourself how to make it work.

This is not something that can happen overnight, so why not paddle into it slowly? You can begin by living on not one, but one and a half income by saving half of your partner’s income. When you find you have successfully adjusted to this lifestyle, you can change the fifty percent you are saving to seventy five percent. Gradually, you can increase this to the entire income of your spouse.

If you are beginning this strategy, you may want to see how you can manage money better and also save the income of the partner with the lower wage. Once you have successfully achieved this, you can challenge yourself to flipping tables and living on the income of the lower earner and as a result save one hundred percent of the higher salary. For a bonus to follow this one of the strategies for managing your money, you can make easier adjustments when you decide to adapt to a household with one-income. This is because all things of your life, such as:

• Mortgage

• Rent

• Car payment

Will all be adjusted around one single income.