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3 Golden Rules to Know if You Want to Improve Your Finances

Being great with cash doesn't just mean knowing how to make ends meet. Anyone can count the pennies and make sure that they have enough cash to pay their bills. However, it takes some genuine strategy and commitment to come up with a financial plan that gives you the freedom to make the most of your money.

The good news is you don't have to be a math whiz or a financial expert to be better with cash. The truth is that managing your money can be a lot simpler than it seems. All you need to do is come to terms with a few golden rules.

Have and Use a Budget

Most people avoid budgeting because they don't want to constantly restrict themselves or stop spending money on the things they enjoy. However, budgeting doesn't have to be as exhausting as it seems. All you need to do is figure out how much money you have coming in, and how much you have going out, then make sure that those numbers align.

Looking into your budget will also help you to pinpoint areas where you might be spending more than you had realized. This will give you more scope to adjust your spending habits so you can find cash for the things you really want in the future. Just remember that once you establish your budget, you'll actually have to hold yourself to it. Don't just let yourself off with the occasional extra expense from time to time.

Remember Unbudgeted Spending

When you're dealing with your budget, keep in mind that there are probably going to be a few expenses in your regular routine that you totally forget about. Maybe it'll be a fee that you only pay a few times a year, instead of every month. Perhaps you'll end up with a flat tire you need to pay for one week, and you won't have a place for repairs in your budget.

It's important to keep money aside for unplanned spending, so you don't end up dipping into your savings every time. Just make sure that you're tracking where this emergency money goes if you do end up spending it. That way, when you look at your budget again in the future, you'll be able to put the right money aside for things you may have forgotten originally.

Never Spend Money Passively

Finally, one of the biggest reasons that we all seem to struggle with money these days, is that we're allowing ourselves to spend money passively - without thinking about where the cash is going. We assume that we have the right deal for our car insurance, so we let the recurring expense go out each month without thinking about it. We sign up for subscriptions and direct debits and ignore them for months at a time.

Today, it's easier to spend money than ever before. So, it's crucial to make sure that you're not using your cash without making sure you're getting the best deal. Compare your options online, check for voucher codes before you make a purchase, and always check if there's a better price elsewhere.

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