Best Ways to Manage Personal Finances Save Money Spending Habits Spend less than you Earn

Managing your personal finances is a challenging, never ending task that requires a firm understanding of certain things that you need to pay attention to. Once that goal is accomplished, you can them move on to the next, which is learning to put these things you learnt into practice.

Best ways to manage personal finances

1. Create a budget you can live with

Divide a sheet of paper down the middle. On the left side, list the sources of your steady income, while on the right side, list your steady expenses. On a separate sheet of paper, list unexpected expenses that pop up from time to time.  

Depending on the above, create a budget that you can live with, a budget that can meet your needs in the best way possible. Once a month, take some time to evaluate that budget to see if everything works fine, or if some adjustments need to be made. Keep receipts from your purchases and bills to have a clear picture of what is going on.

2. Spend less than you earn

Even if your budget allows for something extra, get into the habit of spending less than you earn, as much as possible. Instead of giving in to the first discount you happen to stumble upon, take some time to conduct a more thorough research, to determine if this is really the best deal for you. Ask for discounts, even when they are not offered; if you are a good customer, or if you suggest buying an item in bulk, chances are that the owner will give you a discount. When visiting the museum, pick the one day of the week where free entrance is offered.

You can also participate in as many radio competitions as you possibly can in order to claim free entrance to theaters and concerts. Attend free movie screenings to watch the new movie  and visit your local library often to read books and magazines for free, to your heart’s content. Incorporating those changes in your life will help you improve your spending habits and  save money on a regular basis.

3. Use mostly cash

With credit cards, you are not required to pay the full balance right away, and that makes it easy to overspend. With debit cards, overspending is also easy, as many banks allow overdraft. You have to use mostly cash to pay for your bills and purchases, as this is the only way to control your spending habits and spend only what you can afford.

4. Host swap parties with friends

Another way to manage your personal finances and save money, is by hosting swap parties with friends. Pick friends with whom you have similar tastes in clothes, books, music, home and office supplies, and  invite them to your house to exchange items at no cost. Not only will you be able to save money, but also strengthen your friendships that way. This is a great opportunity to meet friends that you do not see often.

5.Sell used and old items

Instead of letting used and old items piling up and taking up storage space for no good reason, try selling them on Ebay or This is a great way to earn some extra cash and getting rid of things you no longer need at the same time. Just make sure that the items you are selling are all in a good condition. As the competition is fierce, standing out from the crowd is necessary, and that can be accomplished by offering something unique, such as a special buy one get one offer,  and/or free or low shipping cost.

These are the best ways to manage personal finances. If you succeed in incorporating them in your life, you will realize that your financial management will take a turn for the better.