Money management is not a rocket science. You don’t need to have a financial background to track and manage your money well.

If you are good enough with numbers, you are on the right track to managing your money.

Gaining control over your money relieves you of an overwhelming paycheck-to-paycheck lifestyle and gives you insight into your savings and spending.

You are confident that your future is secured, and you are prepared for any contingencies.

Let’s look at these quick and easy money management tips and start with the wealth accumulation process.

1. Create a realistic monthly budget

The first step towards managing your money effectively is to create a realistic monthly budget. You first need to figure out how much money you earn monthly and your monthly expenses. 

To be clear about your expenses, you can refer to your previous bank statements or accounts. Once you’ve written down the amounts, do some basic additions and subtractions.

Subtract these fixed monthly expenses from your paycheck (after taxes) and see how much money you have left in savings.

If your savings are greater, then you are on the right track. And it won’t be a problem if you plan to set aside some of that for lifestyle-related expenses like dining out, shopping, haircuts, or whatever else you need. If your savings are less than or nearly equal to zero, you should rethink your spending criterion.  

2. Define your priorities

Defining and recording your priorities helps you keep track of your spending. This not only sheds light on areas that require your financial attention but also on those in which you spent your money recklessly, without any obligation.

By identifying your priorities, short-term or long-term, you will understand how much you need to set aside for important life events. This can include planning a wedding, buying a cute puppy, or funding your education.

3. Create a savings account

A savings account, as the name suggests, instills savings habits in people. The sooner you start saving, the better. The good news is, it doesn’t have to be big.

Start with something small and then build up gradually for better results. If you are planning to open a savings account, be sure to compare the interest rates provided by different banks.

Even if you save, say, $50 from your monthly income, you will end up saving $600 a year. If your income increases, you should increase your savings as well.

Your savings will not sit idle in bank accounts; you will earn interest rates and benefit from the compounding rule, which means more money.

Having a savings account with HSBC offers plenty of benefits. You enjoy Competitive total interest rates of 1.75% on New Deposits of up to $1 Million CAD. No monthly fees. No minimum balance required and Interest is calculated daily and paid monthly to you.

In conclusion

Money management is all about balancing your spending and saving habits.

Once you define your spending patterns, you will understand how much you can save and invest in the market in the future.

Making a plan and sticking to it for a month or two won’t help you in the long run, but persistence will certainly help.

Try to use the strategies that work best for you. For some, adhering to one money management tip might work wonders, while for others, it would be a mixture of strategies.

As such, your best bet would be to keep following the “luck and trial” approach until you find a real way to manage your money. Useful tool is available from Moneyspire to manage your money effectively.