Golden Rules of Money Management

Golden Rules of Money Management

School teaches you plenty of important lessons. Unfortunately, it misses out on some golden rules for easy living, which you desperately need later in life. One of these rules regards efficient money management for a stress-free lifestyle.

Without proper money control, you risk depending on loans from your family and friends. Even worse, you may have to apply for inconvenient and expensive bank loans. And, if you don’t use financial services like First Payment Provider, you will never get out of debt.

Before you reach that stage, you should learn the golden rules of money management. And, if you are going through a debt phase in your life, you should know that it is never too late to apply them. Here they are!

1. Never Spend More than You Make

We live in a consumerist society that tempts us with irresistible products and services every step we make. It is very tempting to purchase a new TV, a trip to an exotic destination, or even a new car. However, are they really worth getting in debt for them?

To have a healthy financial situation, you should never spend more than you make. If you cannot afford all those things with your current salary, don’t get loans. 

You should always borrow money to get out of critical, life-threatening situations. For example, you can get a loan for medical emergencies or if your landlord evicts you and you don’t have where to sleep. Above all, you don’t enter into crippling debt just because you want to spend five days in the Bahamas.

2. Schedule Your Payments Long Ahead of Deadlines

Most young people feel immense joy when their monthly salaries enter their accounts. That’s because they see the entire sum as a spending budget for fun and exciting adventures. Unfortunately, they are seeing the glass not as half full but as overflowing. In reality, the glass is almost empty.

When you get your monthly payment, you should avoid thinking about all the cool stuff you can spend it on. Instead, start by deducting all the utility fees, taxes, and loans you have to pay from it. For instance, you have to pay for rent or mortgage, energy, gas, water, and subscriptions for internet and phone. 

After paying all of these, you still have to put money aside for a month’s worth of food, entertainment, and other basic needs. That’s when you’ll realize that payday is not the happiest day of the month. Unless, of course, all your monthly dues and payments usually amount to just 10% of your income.

3. Avoid Unnecessary Costs

Most of us apply for banking services without reading the fine print. Later on, we find out that we are paying exorbitant fees on money transfers.

A much better option is to use a financial service like First Payment Provider. This innovative tool enables you to bring all your bank accounts onto one user-friendly dashboard. There, you can see how much you make and schedule all your monthly payments ahead. Above all, you get to pay some of the lowest transaction fees in the industry. Therefore, you get to save more money in the long run.