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Managing Your Money: 5 Smart Money Habits To Follow

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October 26th, 2021 21:24

Smart money tips

Following smart money tips can help improve your financial health and catalyze good decision-making. If you cannot resist buying something and are given an offer to either buy that or get that product’s money-worth directly into your account, what would you choose? In case you choose the latter, then you certainly do not need the product.

The pandemic has rendered the whole world at a standstill; however, due to the advent and pervasiveness of e-commerce, a sharp hike in shopping was seen globally.

Shopping or spending per se is not an unhealthy habit entirely if done mindfully; but, an inadvertent and imprudent decision can leave a dent in your finances. Like tiny drops can make a mighty ocean, small yet smart money habits can go a long way in making a financially healthy life for you.

Here are 5 smart money-saving tips that can help you save money and create a budget:

Comparative shopping

Increasing competition in the market has paved the way for customers to make informed choices. Today, we have a diversity of products and services with different offers and from different brands just a click away! So, why not make use of this abundance and indulge in some comparative shopping?

There are several price comparison websites that can present a well-rounded perspective of the product you are looking forward to buying by showing its price on several other online platforms. Even if you save a small amount, it can make a significant contribution to the bigger picture and can help you smartly manage your money. 

Coupons, rewards, and cashback

Another smart money management tip is to try and conduct digital transactions as most of the websites provide cashback and other offers. If you purchase via credit card, it usually adds points to your account which you can redeem later. 

Moreover, there are websites and applications that exclusively provide coupon and referral codes for free. Before you check out, always ensure to check available coupons on the website that you are purchasing on.

However, sometimes, websites do not explicitly notify you of an available coupon or offer; you might, therefore, have to spend some time and effort in looking for those.

Look out for freebies

The lockdown has led us all to reconsider our priorities. When shopping online, you can look out for various websites and offers that provide you with freebies and goods at cheap prices. Freecycle and Sharebay are a few examples of such websites that have helped people shop sustainably. This can indeed be a good alternative for shopping.

Continuity and cancellation of subscriptions

Keep an eye out or even set reminders for your subscription renewal dates

Whether it’s the premium version of Spotify, Youtube Premium, or even your subscription for television channels, if you’ve signed up for a free trial period, it is important that you cancel the subscription before it gets renewed and charged to your account. 

These days, almost every website and app has a premium version apart from the regular service and that offers a better experience to their customers. Hence, a smart money tip would be to be mindful of and keep a record of the subscriptions you sign up for and continue with them or pause them as per your requirements. 

Track, review, and analyze your expenses

Lastly, making a budget and tracking your expenses can help you bifurcate your transactions into what is needed and what is not. You can download an application that can provide a one-stop solution for tracking, reviewing, and analyzing your expenses. 

Some of these apps even help in forecasting your budget and provide a space to store your receipts and bills for future references. These apps usually have a user-friendly interface and provide comprehensive statistics based on your financial behavior.

Conclusion

It takes a mere tap on your phone to take a step towards inculcating financially responsible behavior in your daily life. Managing money smartly is equally important as making money. If the latter is done in tandem with the former, it will help you sail through tough times like these. 

Frequently asked questions

1. What are better money habits?

  • Better money habits entail, among other things, knowing your spending trends, tracking and analyzing your spending habits, setting both short- and long-term financial goals, and, very importantly, learning how to budget. 

2. What are good spending habits?

  • Good spending habits start with a plan. It should ideally include a monthly budget that will help track the expenses and bifurcate essential and inessential expenditures. Filtering out impulsive spending and spending to feel better should be omitted. 

3. How to become smart with money?

  • To become smart with money, having a specific plan can help. Having different ways to channelize money productively should be looked into and money should accordingly be saved, invested, and spent. 

4. What should you not do with your money?

  • Money should not be cashed in as soon as a cheque is received and emotional or impulsive spending should be avoided. Although certain flexibility should remain, your budget should not be overlooked. 

5. What are the principles of money management?

  • The first and foremost principle is to follow the budget. Further, your budget needs should be separated from your wants and unnecessary expenses should be filtered out. Consistency and punctuality are crucial as well when it comes to money management.



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