Before diving into money management, identify your short-term and long-term goals.
- Short-term goals: Examples include saving for a vacation, building an emergency fund, or paying off credit card debt.
- Long-term goals: Think about buying a home, funding education, or retiring comfortably.
Why it matters: Goals provide a roadmap for your financial decisions and help you stay focused.
Track Your Income and Expenses
To manage money effectively, you need to know where it’s coming from and where it’s going.
- Record income: Include all sources—salary, freelancing, investments, etc.
- Track expenses: Divide into fixed expenses (rent, utilities) and variable expenses (groceries, entertainment).
How to track:
- Use budgeting apps like Mint, YNAB, or Excel sheets.
- Review bank statements to identify spending patterns.