You will probably agree with me that this is not the best of time to toy with money management. But then, life must be lived, and money must be spent to sustain it. How then can you make better spending decisions in these times?

1. Use more of cash & less of ATM cards

Psychologically, it is much more difficult to overspend when you are using cash because of the immediate pain you experience as you watch the cash slip from your hand. People use ATM cards because of its convenience, therefore that immediate painful experience that makes you want to think twice about a purchase is absent when you are transacting with your ATM card. Therefore, as a good money management tip, use more of cash to make purchases.

2. Spend on experience rather than material items

The thing with spending on experience is that it makes you happier than material purchases. Even research shows that if you make material purchases that meet those same needs, they’ll make you just as happy.

For example, you love to watch football. You have to buy a decoder; a material item—but this purchase is one that fosters a relationship in that it helps you bond with your friends and family, and that makes you happy. Making experiential spending is a good money management tip.

3. Record your spending

Emotion drives a lot of people to shop. For example, you may want to get a new phone not because the phone is faulty but because you just feel the phone is old. But, when you start writing your spending down, things become more rational.

The knowledge that you have to write your spending and track it makes it difficult to spend money based on the way you are feeling at that moment and that enables you to spend more wisely and improves your money management skills.

4. Save with a goal

The best way to save money is not to dump a slice of your income in the bank because you think it’s the right thing to do. Saving with a goal in mind is a good money management tip you need to know about.

For example, if you say, “I am saving up to buy a Toyota Camry because it’ll make commuting easier”, you will discover that that anticipatory happiness will enable you to focus, save more, and cut off some excesses. Your likelihood of being successful is higher when you save with a clear goal.

Did you find this helpful? What is your opinion about this? Do you have more tips? Please, leave us a comment. If you find this helpful, please share to your friends.

Recharge cards and phone calls are the greatest unplanned eaters of money now.

You think it is just 100 or 200 but after unintentionally buying it thrice a day, it digs into your purse

5. Always take a collateral of toks value when lending.