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Money management: Learning to handle your finances responsibly 


Managing your own money can be a challenge in today’s world when there are so many temptations all around. It’s easy to say that you’ll start saving and managing your funds more responsibly, but if you realize that you keep postponing this goal, it’s probably time to change something. Luckily, there is no shortage of ways to boost your finances, but you need to design a plan and stick to it as much as possible. If you’re serious about getting in control and learning how to take care of your earnings so that you can reap more benefits from them, here are some of the things you need to consider.

green plant in clear glass vase

Track spending 

Regardless of how much you earn, if you’re prone to erratic spending and splurges, it’s unlikely that you’ll ever be able to save much. No matter your salary, there are always more expensive things you could buy. Markets are incredibly fast-paced nowadays, and there’s no shortage of apparel, interior design, decorations, or electronics to buy. And if you’ve become accustomed to shopping frequently, it might be that the activity has become something of a hobby for you or even a safe haven you escape to when you’re feeling stressed or pressured. 

If this sounds familiar, chances are you’re not sure how much you spend each month either. That naturally means there’s plenty of room for improvement in how you handle money matters. Start with keeping track of everything you buy, no matter how little you pay for it and how insignificant the item seems. All these tiny expenses add up, and the total amount will probably be quite shocking. At the end of the month, have a look at what you’ve shopped for and determine which categories are essential to you and which you could reduce or even completely eliminate to alleviate some of the pressure on your budget. 

This doesn’t mean that you need to eliminate all purchases that are not essential, but make sure to remove all impulsive purchases and take time to carefully consider whether you want to buy an item or not. You’ll notice that after you give it some time, you’ll feel less inclined to complete the purchase as you’ll realize you don’t need that thing after all and perhaps don’t even want it that much. 


Building an investment portfolio can sound daunting if you’re unfamiliar with its meaning. But getting over this reluctance is crucial to becoming more financially stable. Even if your means to invest are limited, don’t let yourself become discouraged. Even the most negligible contributions can generate income and help you earn money. The important thing is to be persistent and patient. One of the most common investments is the 401(k), which you could discuss with your employer to learn more about what it entails. 

Those who are more adept are also likely to look toward riskier assets that can nonetheless yield considerable returns for those who are lucky and possess the know-how of how to make the most of the momentum. As such, some are looking into how to buy Bitcoin, while others are moving toward real estate, mutual funds, index funds, and ETFs. However, if you don’t feel comfortable delving into these assets just yet, there’s always the option of starting with something more reliable and gradually building your tolerance. 

Monthly budget 

In order to hold on to your money and ensure you don’t exceed your own means, you must devise a budget and try to stick to it as much as you can. Keep in mind that this should be a realistic financial plan that allows you to live comfortably. Changing your lifestyle overnight is not healthy, and it’s more likely to do more harm than good as it leads to frustration and causes you to spend on a whim. For example, if you’re used to getting takeout four or five times a week, you could start by limiting yourself to just two or three times and cook dinner at home on the other days. 

When building the budget, start by looking at your monthly income, including your bonuses, tax refunds, and income from side work. Add your monthly expenses or at least an estimation of how much you predict you’ll spend. In the case of payments that differ from one month to another, such as utilities, you can rely on an average from the previous months. Subtract these expenses from the total income, and allocate anything that’s left to paying debt or your savings account. 

Change your perspective 

Changing your perspective on money can improve your success rate as well. The first step is to remember that your goals are achievable, even if they seem daunting in the beginning. There are plenty of resources at your disposal, as well as opportunities. Giving yourself time so that your savings can build is also crucial. Take notice of any negative mindsets associated with money that you are susceptible to and aim to replace them with positive ones. When you reframe your behavior and mentality, you’re also becoming your own biggest supporter and best friend, so you’re less likely to self-sabotage or fall prey to anger and frustration if you encounter any setbacks along the way.

Taking true ownership of your money is crucial in this regard as well. What this refers to precisely is that you should be open to striking a balance between spending on what you need and what makes you happy. This means that you don’t let the money control you but are the one calling the shots. Reaching your goals is also easier when you set a practical and down-to-earth timeline during which you’ll reach all the milestones that are part of your plan. Take your current financial situation into account when coming up with this timetable, but don’t hesitate to extend or reduce it depending on how things unfold. 

Taking a balanced approach to money and finances is not always popular. Many people are either prone to overspending or imposing very strict limitations on themselves. Both of these mindsets are detrimental, and if you want to enjoy long-term benefits, make sure to take the middle ground.