2 Clever Ways To Manage Your Money

2 Clever Ways To Manage Your Money

Believe it or not, wealthy people lose money. It is safe to infer that they do not like those occurrences. Money is a tool that comes with a measure of uncertainty. But, it is useful, a popular and often regulated means to acquire good and services. Notice the below best practices that can help you use money more wisely:

Track your time for a month. This exercise will help you discover your consumption trends related to money. How often do you visit work, grocery stores, gas stations, restaurants, pharmacies, etc.? Can you reduce the number of transactions via better planning, online shopping, delivery services and/or telecommuting? It is reasonable to think that if you know and understand the activities whereby you spend and make money, you can implement measures to reduce cost (or increase revenue).

Track your expenses for a month. Of course, basic living expenses are important. You experience the need of those daily. Being astute about your tax responsibility may save you tax dollars too. Plan your voluntary tax compliance throughout the year. Ask yourself, “will this expense qualify me for a tax benefit?” Further, use credit responsibly; repeat, use credit responsibly. Furthermore, financial planning tools such as budgets work for some people. Try categorizing your expenses into basic living, leisure and luxury buckets and fine-tuning your management of your resources as necessary. Use the technique that provides you with timely, accurate and a 360 view of your finances.

For many people, money is a very emotional topic. Often, there is a battle between needs versus wants. The frequency of assessing your financial behavior may vary – daily, weekly, monthly or annually. The key is to understand what is best for your circumstances. Money is a tool; also, it is a mindset. Setting and achieving financial goals often involve your judgment and external players such as the state of the economy (e.g., Federal Reserve, Congress, value of currency, etc.). Seek education in financial concepts and techniques. Last but not least, make saving for a rainy (and good) day a fixed expense. Best wishes!

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Pierce, CPA & Associates LLC "Making Your Tax Experience Happy"