Managing your money can be tricky. There’s nothing worse than feeling overwhelmed and confused about your own finances. To be strong and independent, it’s essential that you master your income and keep your finances in check. Here are 5 tips you can use to manage your money and become more financially stable.

1. Keep track of your spendings

Although this may seem overwhelming and nervewracking at first, this is one of the most important steps you can take to help you manage your money. As you write down and track your spending, you’ll become aware of where you spend the most money. In return, this will help you understand where you need to cut back, and will allow you to spend less and save more money in the future.

2. Create and follow a budget

Create a budget that allows you to pay for your lifestyle and essentials, but also allows you to put money away into your savings. Break down your budget into 3 categories of spending:

1. Essentials and priorities: rent, bills, groceries, transportation, etc.

2. Paying off debt and mortgage.

3. Non-essentiasl: travel, shopping, etc.

When it comes to your budget, you can decide to spend however much you would like on these 3 categories. The most important thing to remember is that you should always have enough for your essentials and bills.

3. Go by the 20-80 rule

The 20-80 rule is one that many successful entrepreneurs live by and recommend. With the 20-80 rule, you save 20% of your paycheck and spend the remaining 80%. By following this rule, you’ll be able to build a strong savings account and not be burdened by the stress of potential financial emergencies.

4. Limit your credit card use

Your credit card can be great for larger transactions or sales that need credit card protection. But, when it comes to your credit card –  your spending is much less limited than it would be with cash. When you use cash, you know exactly how much you have and how much you can spend. Limit your credit card use to only using it when you have to in order to avoid spending more than you have and digging yourself into debt.

5. Change your mindset about money

A lot of how you deal with and perceive money depends on your mindset about money. If you constantly worry that you don’t have enough money and don’t deserve having abundance – you’ll stay in a place of never having enough. Instead of ignoring your finances or being nervous about them, gain confidence in how you deal with money and create a plan where you can thrive. Changing your perspective on money can change how you approach your own finances and financial abundance.

Final Thoughts

With these 5 simple steps, you’ll be able to find financial freedom and confidence in your spending habits. Once you learn how to master your finances, you’ll be that much closer to becoming a financially independent and strong woman.

Photo Credit: Annakatinkafehr