basic money management

Basic Money Management Rules to Improve Your Finances

Regularly making more money than you spend is only one way to improve your finances.

For a more holistic approach to money management, follow these key rules for a brighter financial present and future, including using a payday loan.

How To Turn Your Life Around with Basic Money Management Skills

Be Honest with Yourself

Basic money management includes knowing not just the fundamentals of finance in general, but the fundamentals of your finances specifically. To up your finance game, you should have a strong understanding of your current financial state.

Establish a system of keeping track of each source of regular income as well as your expenses every month. You may prefer keeping receipts or tracking everything through your bank, but numerous financial apps can make monthly tracking a snap. 

Set Short and Long-Term Goals 

While setting goals is a fundamental part of basic money management, don’t hesitate because you think they aren’t “big” enough. While some financial goals are huge and probably for the longer term — paying down substantial debt, and buying a home — it’s fantastic to have a set of short-term financial goals to get you started on the right track to improved finances.

This could mean setting a monthly budget for expenses, paying off one chunk of debt and then moving on to the next, or saving to buy a car in the next year.

Make a Budget

You’ve already got one rule down: be honest with yourself when outlining your expenses and income sources. Now take a very hard look at them, determine which expenses are needs and which are wants, look for areas to cut entirely or cut back on and formulate a new budget that fits your goals.

Do what works best for you, but many like the 50-30-20 budget plan: covering necessities with 50% of your income, with 30% reserved for so-called wants (such as entertainment, vacations, the gym) and 20% specifically toward set goals, like credit card debt payments.

make a budget

Invest In Your Future

Basic money management means thinking responsibly about the future. Just a little over half of Americans are currently investing in their retirement funds, such as 401(k)s.

That’s a great place to start but consider establishing a savings fund separate from your regular savings account that will help to supplement your retirement income or any plans you have post-career.

Other great investments in your financial future include saving up to buy a home and paying off student loans. 

Limit Credit Card Use 

Using a credit card isn’t inherently bad. But money management must include both being conscientious about collective credit card purchases and either paying off your card each month or at least covering the minimum payment. Both happen less often than they should.

The average person in the United States has more than $7,000 in credit card debt. One way to better manage credit card use is to set up alerts that inform you when your credit card spending hits a certain amount.

Don’t Ignore Your Savings

A slew of goals can be achieved by maintaining a consistent savings plan. Savings accounts help you manage and invest your money more effectively and offer protection when an unexpected financial emergency strikes.

Even making a small contribution to your savings account from a paycheck each month can go a long way. And when thinking of the future, consider not just a 401(k) or a bank savings account, but also investigate other options such as bonds, stocks, or an IRA plan.

online payday loan

Get Assistance with an Online Payday Loan

Financial emergencies can happen to anyone on the financial spectrum. When a life event such as a trip to the hospital, last-minute travel, or a major home or car repair pops up, one option for quick and easy financial help is an online payday loan.

Payday loans are designed as small amounts of cash given in a short-term loan designed to tide you over financially between paychecks. They are specifically designed to help overcome a financial emergency -- not help with a long-term persistent financial issue.

It can take as little as 30 minutes to qualify for an online payday loan of up to $500 at Alabama Title Loans, Inc. You can still pursue a payday loan even if you have bad credit.

Here’s how it works: Fill out the short payday loan form on our homepage and one of our representatives from the location closest to you will give you a call to discuss the required items and walk you through the rest of the process.

Once you qualify and are approved, you receive the cash you need the same day or the very next business day.

Get Started Today 

A financial emergency can seriously derail your progress even when you follow some of our basic money management rules. To get started with a payday loan, go to our homepage, give us a call, or visit us today.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Emma Frost

Emma Frost is a lifestyle and finance blogger with a talent for communication and a passion for financial literacy. She uses her writing talents to explore topics that help her readers gain financial stability and growth.