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The long-term benefits of proper money management

2nd February 2020 Print

Money is something that we all need to live and to look after our families. It is also something that can cause a lot of stress – mainly if you do not have enough coming in each month! Many people in the UK know that sinking feeling of only just having enough money to cover all their bills or seeing their wages disappear within a few days of getting them. The good news is that these kinds of situations can be rectified with proper money management. 

By looking after the money you get and putting plans in place to not only use it more intelligently but also save, money could be something that you no longer have to worry about.

How do you go about learning to manage your finances?

Before we move on to look at why managing your money properly is key, it is first wise to think about how to learn about doing so. This can be especially useful for women to think about, rather than leaving financial management to their boyfriends or husbands, as may have happened in years gone by. Getting the basics of accountancy down is a great first step to learning about money management and how to save. It can also help women in their career, as Lady Barbara Judge has noted in the past. Lady Judge is a powerful advocate of women in business and advises that learning business accountancy is wise as “that is where the power lies”.

The truth is that both men and women now have a variety of sources from which to learn skills in financial management. From searching the internet for online articles to reading paper books on the subject or taking a part-time college course in the evenings, there are a few ways to get to grips with the basics.

Just why is putting all this effort into managing your money worthwhile? 

Helps to build your wealth for the future

Although we earn money in order to live, building wealth over time should also be a priority. This will come in handy all the way through your life and give you a decent nest egg to retire with or a pile of cash to cover any emergencies that life could throw at you. As noted above, accumulating wealth through proper money management will help you to retire earlier and live more comfortably when you do. A great way to go about saving money is putting a set amount aside each month and remembering not to dip into these savings unless really necessary. 

Can help you live well now 

Although living well when you retire is a big reason to manage your finances properly, it will also help you live a better life until then. Managing your money well ensures that you have some spare left each month to simply enjoy yourself with or to treat your family. By sticking to a budget and setting some aside in your savings, you will have full peace of mind to enjoy any spare money left over after that. This not only makes you feel happier but also allows you to live a more contented lifestyle. 

Stops you living hand to mouth 

For many UK residents, the surprising fact is that the amount they earn is not the problem. It is often how it is used (or wasted!). A lack of proper money management can see monthly wages disappear in an instant. This can then leave you waiting desperately for weeks for the next lot to arrive! By managing your money better, this situation is resolved and you instead have enough money to last you all month. Great tips in this area involve tracking your spending habits, cutting back on things such as takeaways, accessing cheaper energy, and also looking at how much you spend on food shopping.

Allows you to pay off debt 

If you find yourself building up debts and spending regularly on credit cards, then effective money management can help. Situations like this are signs that your finances are out of control and need some attention. The problem is that monthly debt repayments eat into what you have left to spend each month and can then lead to more debt being run up. This can not only stop you from building wealth but also having the spare money to reach certain goals in life. Try to set up a plan to pay off any debts, and stick to it – by planning it out in this way, you will be able to look forward to a time when your debts are all settled.

Take steps to manage your money 

If you do not yet pay attention to managing your money, then it is certainly worth considering. As the above shows, savvy financial management has a range of benefits for the present and future. Learning about accounts and figures could also even help in your career! By practicing top money management techniques, you can take advantage of the many benefits it offers.