A lot of people think their money problems would disappear if they just earned more.
And yes, income matters.
But many times, the real issue is not how much you make. It is how you handle what already comes into your hands.
Because even if you suddenly started earning your dream income tomorrow, poor money habits would follow you there.
You would just spend more, faster.
So before chasing bigger paychecks, it helps to understand how to manage the one you have now. Doing that gives you control, reduces stress, and enables you to stop living from paycheck to paycheck.
If this is you, let’s talk about how to get your money under control so you can finally stop living for the payday.
13 Practical Tips to Manage Your Money
1. Find Your Sense of Identity
This may not sound like a money issue, but it is a big one.
If you don’t really know who you are or what you value, your spending will be driven by trends, pressure, and comparison.
For instance, you will see someone on Instagram with a specific aesthetic, or you hear of a new trend, and suddenly you’re buying a whole new wardrobe or home decor just to fit in.
But then, when the trend changes, you become someone else. And so you keep moving until your bank account is left suffering.
But when you have a solid sense of self, you stop spending money to prove who you are to people who don’t even know you exist.
And that way, you can spend your money more judiciously.
Because you know what matters to you and what does not, and can better structure your money based on that.
2. Have a Real Financial Goal
You seriously need a “why” behind your saving, or you’re never going to find the discipline to stick with it.
Even if you’re a natural at putting money aside, without a goal, that money will be sitting there waiting for a temptation to come along.
You’ll be doing great until you see a pair of shoes on sale or a cool gadget, and suddenly, boom, you’ve emptied your account, because you weren’t saving towards anything anyway.
But if you’re saving for something – a house, college fund for your kids, retirement, etc – you’ll have the motivation to stay disciplined.
As your goal gives you what to look forward to, you’ll be less inclined to use it impulsively.
3. Build a Budget
I know that, sometimes, when people hear about having a budget, they feel like it’s a punishment. But it’s not; it actually gives you clarity.
It helps you see where your money is going instead of just spending blindly.
So, every month or week – depending on how your income comes in – create a budget on how you will spend the money.
And don’t just make a mental note. It helps to write things down so you can clearly see what you have.
You can try the 50/30/20 rule, where 50 percent goes to needs, 30 percent to wants, and 20 percent to savings or debt.
And please, for the love of everything, include entertainment in there.
If you try to live like a monk, you’ll eventually snap and go on a spending spree because you feel deprived.
So, a budget doesn’t mean you can’t enjoy yourself at all; make room for it in your budget, but make sure to stick to what’s set.
Also, make sure to add a miscellaneous category for those random things that always pop up, like a friend’s birthday or a flat tyre.
If it’s in the budget, you will find that most things are easier to manage.
4. Save First, Spend Later
This is the oldest trick in the book, yet so many people do it backwards.
They wait until after spending to see what’s left over to save, and I’m sure you already know that there’s rarely anything left.
That’s why the best way is to pay yourself first.
That means once money comes in, move your savings or investment money out of your main account immediately.
If you lack the discipline, luckily, there are fintech companies that allow you to automate the process now.
So, for instance, if you are paid on the 21st of every month or on Fridays, you can set the automation in motion to remove a certain amount at that time.
This way, you don’t have to bother about making the decision every time; the platform does it for you.
If you keep to this, you’ll be forcing yourself to live on the remainder. But you know what I’ve come to find; we don’t need as much as we think we do.
You will find that it’s way easier to adjust your spending when you know you only have a certain amount left than to hope you’ll be disciplined enough to stop spending later.
Also Read: Wise Reasons to Save Money for the Future
5. Start Investing
Investing can feel super intimidating and tricky if you’re a beginner. That’s why it pays to start small at that stage.
I mean, because you are a beginner, you might want to use it as an excuse not to start at all; don’t do that.
However, don’t go dumping your life savings into something you don’t understand.
First, take the time to determine your risk appetite, which is basically how much sleep you’ll lose if the market dips.
Research everything fully and ask questions before you jump in. Some investments will fluctuate, and that is normal.
But it pays to only put your money in something you understand.
Don’t put your money in anything just out of peer pressure and hype. Investing should be intentional.
And definitely, not in what sounds too good to be true, like 120% increase in 2 months.
The goal here is long-term growth, not a “get rich quick” scheme.
But the sooner you start, the more time your money has to grow, so don’t wait until you’re rich to start.
Even small, consistent investments matter over time.
6. Block all Leakages
There are probably a dozen ways you’re losing money right now without even realising it.
It could be that a $10 subscription for a streaming service you haven’t watched in six months, the daily snacks that are unhealthy for you anyway, or frequent rides to places you can walk to.
Whatever the case, you might be thinking it’s just $5, but those small amounts add up to hundreds over a year.
Go through your bank statement, and you’d be surprised how much you’re actually spending on things you shouldn’t.
So, review your spending and be ruthless. If you aren’t using it or it isn’t adding value to your life, cut it off.
Trust me, blocking these small leaks is the easiest way to raise your income.
7. Know the Difference Between Needs and Wants
This sounds simple enough, but we don’t always have clarity in the heat of the moment at the mall.
So, let me help you.
A need is something you actually require to survive and function: rent, basic groceries, bills like water and gas, and basic transport.
A want is everything else. It is ordering from that expensive restaurant, a new coat when you already have two, the shoes on sale when you have enough, and yes, an Uber ride when you can take the train or maybe even walk.
Now, I’m not saying you should never buy wants – that’s also why you work. But just make sure it falls into that 30% in the budget.
Basically, I’m saying know when to stop, and it should never be at the expense of your needs.
Also, be honest with yourself when you’re going overboard so you don’t prioritise a want over your future security.
8. Live Below Your Means
Most people tell you to live within your means, and I used to say that too.
But I’ve realised it’s actually better to live below it.
The reason is simple: living within your means does keep you stable, but living below your means gives you freedom.
If you spend exactly what you earn, you’re always going to be one emergency away from disaster, so you need to aim to live below your means.
This is way more effective because it creates a buffer in case of unforeseen circumstances.
That means you should intentionally choose to live in a slightly smaller apartment or keep your car for a few extra years even when you can afford an upgrade.
That extra money can be used to build wealth and buy yourself a massive amount of peace of mind.
You can use it to save, invest, or handle unexpected expenses.
Basically, that means you do not need to match every income increase with lifestyle upgrades.
Sometimes, staying simple is the smartest move.
Also Read: 20 Practical Tips to Live Frugally and Save More
9. Avoid Debt Like the Plague
Seriously, try to use cash or your debit card as much as humanly possible.
Credit cards are great for emergencies or major life stuff, but using them for dinner or clothes is a slippery slope to high-interest hell.
However, if you’re already in debt, make paying it off your absolute priority.
You might have to delay some gratification – like skipping a vacation this year – but getting that weight off your shoulders is worth it.
Trust me, freedom is far better than temporary enjoyment.
So, focus on reducing your debt so you can have a much-needed mental space and financial breathing room.
10. Avoid Impulse Buying
This is something many of us battle with, unfortunately. But it’s also one of the major ways we drain our money.
So a good tip is to wait it out. Wait at least 24 hours (or even a few days) before considering it again. Usually, that must-have feeling fades, and you realise you didn’t actually need it.
Also, don’t be fooled by sales. If you see something for 50% off, ask yourself if you would have bought it at the original price.
If the answer is no, then you aren’t saving money by buying it; you’re still spending money you wouldn’t have otherwise.
11. Get Basic Insurance
Insurance is one of those things that feels like a waste of money until you actually need it.
Medical insurance, especially, can save you from financial shock during emergencies.
Because one unexpected trip to the hospital or an emergency surgery can wipe out years of savings in a single afternoon.
So, having basic coverage acts protects you from being plunged into unplanned debt.
Just see it as one of those adult things that actually provides a huge amount of freedom because you know you’re protected if things go sideways.
12. Plan for the Future Early
I know it feels like the future is a lifetime away, but time moves way faster than you think.
So, you should start planning now.
Let me tell you, it makes your life a lot easier when you know you have a retirement account or a long-term plan in place.
You will not have to deal with the anxiety that comes with wondering what will happen when you stop working.
Now, you don’t have to put away a lot. Even just starting with a small, consistent amount while you’re young makes a massive difference thanks to compound interest.
13. Track and Review Periodically
Finally, you can’t just set all this up and walk away. Your life changes, and your finances should too.
So, make it a habit to sit down once a month or once a quarter to see how you’re doing.
Are you sticking to the budget?
Did you find a new leak?
Or maybe you got a raise and can increase your investments.
You may not note all these if you don’t track your progress.
But if you make it a habit, you will find that it’s actually kind of fun, especially once you start seeing the numbers go up.
Also Read: 10 Financial Habits To Break To Grow Your Wealth
On the Final Note
At the end of the day, managing your money doesn’t have to be boring. If you do it properly, you can even have fun with it, especially when you start to get the hang of it or start seeing your money growing.
Yeah, it might feel stressful at first, and you’ll probably mess up a budget or two along the way, but that’s totally okay. Just pick up where you left off and continue. With consistency, you should start to see your bank account smiling soon.
FAQs
What is the best way to manage money?
The best way to manage money is whatever method you can actually stick to without wanting to pull your hair out. But if you want a straight answer, the gold standard is automating your finances. If you have to make a conscious decision to save every single month, you’re eventually going to have a weak moment and spend it on a weekend getaway instead. Set up your accounts so that a portion of your paycheck vanishes into savings before you even have a chance to miss it. When you don’t see it, you don’t spend it; that’s an easier way to sustain the habit.
What is the 3-6-9 rule of money?
The 3-6-9 rule of money is a super simple way to save towards your emergency fund so you don’t feel overwhelmed. The 3 stands for three months of basic living expenses (the bare minimum to keep you afloat). Once you hit that, you aim for 6 months, which is the best part for most people. Then 9 months is for the overachievers — or people with unpredictable jobs — who want nine months of cash stashed away. It’s a way to protect yourself from life’s unexpected disasters, so a flat tyre doesn’t become a financial crisis.
What is the 70/20/10 rule of money?
The 70/20/10 rule of money is a money management rule that you can use to organise your finances. In this setup, you use 70% of your income for everything—rent, food, fun, and bills. Then, you put 20% toward your debt or savings, and the final 10% goes toward tithing, giving, or extra investments. It’s a bit more flexible for people who have higher cost-of-living expenses but still want to make sure they aren’t neglecting their future.
What is the 3 jar method of saving?
The 3 jar method of saving is an old-school way to save money, and it’s great if you’re a visual person. You basically divide your cash into three “jars”: Save, Spend, and Share. The “Save” jar is for your big goals, “Spend” is for your daily life and treats, and “Share” is for gifts or helping others out. Even if you do this digitally with different bank accounts, it’s a brilliant way to keep your money from getting all jumbled together. It stops you from accidentally spending your rent money on a fancy dinner because you can clearly see which jar is getting low.
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