Financial management is a skill –despite the fact that we try to deny it! Being able to efficiently direct your spending in such a way that it balances finely with your income, can be a herculean task of sorts. Money management, as opposed to common belief, is not about being stringent or tight fisted. It just means financial discipline.
This is easier said than done. However, with a few self-administered questions, you can develop a healthy spending and saving culture.
- Do you really need it?
- Is it on your budget?
- Can you save the equivalent amount?
These questions will curb extravagant spending while ensuring that you don’t regret your purchases. Alternative methods to money management are; setting daily/weekly limits, linking an automated savings account to your account and goal-oriented savings.
You do not have to be rigidly curt when it comes to spending, you just have to balance it with a healthy management lifestyle.