Innovative Ways to Manage your Personal Finance
Budgeting is no longer a painful exercise that requires a masterclass in spreadsheet software. There are plethora of innovative ways to manage your dirhams. Even if you are a novice in the world of managing your own wealth, you need to think strategically about how you are going to manage wealth. Managing your wealth will help you decide on the optimal course of action from setting priorities for your family to planning for your retirement. Start managing your wealth today for a better tomorrow.
- Schedule weekly money dates- Allocate at least one hour a week to your finances. Update your budget, review any upcoming expenses, pay bills in fact automate those as much as possible, review your accounts for accuracy. Don’t take this as a task, make this process fun for you- listen to music, dance, light candles or do whatever makes you happy. The more fun it is, the more likely it is that you’ll continue to do it — and consistency is what counts.
- Download a finance management app on your smart phone- There’s a growing range of apps that can help you plan your income and spending, keep on top of bills, or even slash the cost of your weekly grocery shop.
- Keep two bank accounts –Have one account for your expenses and have another one for your savings. It’s a simple solution but it works very well. Splitting the two allows you to keep tabs on your money better. This allows you not only to physically put your money in two places, but know the amount of money you have spent and saved up. Ideally, you should have more in your savings than in your expense account.
- Achieve targets and award yourself –Even an occasional dinner at a nice place to mark a milestone in your savings plan can be helpful. When you do meet your target, buy yourself something you’ve wanted for a while. Having something that really motivates you helps you stay focused on your goal.
- Pay your credit cards first – If you do have a credit card the least you can do is to pay them off first and ensure you have zero balance each month. Paying the minimum is a trap as the outstanding balance remains the same. You’re essentially only paying off the interest to the bank if you do that. If you maintain a zero balance, you avoid coughing up to 3 per cent ‘finance charges’ per month, ‘credit shield’ and all other pointless charges. Doing so would allow you to save thousands, each year.
Regardless of where you are on your financial journey, dedication and commitment to continued financial education is the key. Make sure you continue to devote the time and energy to your personal finances throughout your lifetime.