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Spending Money Wisely
Author: Financial Success | Image: Financial Success
Figure out your budget
Making a budget can seem like a time-consuming thing to do, but it is one of the most important steps in order to ensure that you are financially organized. Creating a budget is going to allow you to track your spending, so you know exactly what you are spending your money on, and from there, you are going to be able to become more successful when it comes to achieving your financial goals. The 3 keys to creating a successful budget are tracking your spending, paying off major bills first, and then creating a spending plan.
There are many easy ways to start creating your budget, including
- An Excel Spreadsheet
- CashCourse Budget Wizard
- Mint: Personal Finance & Money (In the App Store)
- Template on the Office of Student Financial Success website
What creating a budget is going to do is help you see if you are overspending (spending>income) or if you are underspending (spending<income). If you figure out that you are overspending, then you need to decide to either reduce your spending or find an additional source of income to ensure that you are not going over budget.
Decide what is a need and what is a want
Deciding between a need and a want is an extremely important task when it comes to saving money, especially as a college student where the money is often limited. It can be very hard to decide between the two, especially when something like the new iPhone comes out or one of your friends asks you to go out to eat. However, figuring out what is a need or a want is the key to spending money wisely and sticking to your budget.
What are examples of Needs?
- Housing, Mortgage Payments, and Utilities
- Loan Payments
- University Fees
- Transportation
- Food (Groceries)
What are examples of Wants?
- Sources of Entertainment
- Memberships
- Brand New Clothes
- Dining Out/Drinking at the bars
- New Electronics
The needs and wants may differ between people depending on certain aspects of their life. While cutting out wants is important to maintaining a successful budget, it does not mean that you should cut out all the wants completely. One thing that is recommended when it comes to keeping track of needs and wants is to use the 50/30/20 rule. This means that 50% of your income should be devoted to paying for needs, 30% of your income can go to buying your wants, and the last 20% should be added to your savings.
Plug the leaks in your spending
Small spendings can add up and end up having a huge impact on the success of your budget and can often lead to you thinking, “where did all of my money go.” Stopping these leaks in your spending will ensure that you meet the goals that you set in your budget and that you are spending your money wisely.
Some of the ways to plug these spending leaks include
- Carry around a reusable water bottle to cut out needless spending on things to drink
- When going shopping, make a list and stick to it—no impulse buying.
- Carry cash instead of credit cards to ensure that you are only spending what you can afford
- Get rid of subscriptions that you don’t use anymore or are just unnecessary.
- Pack snacks from home to avoid higher prices at vending machines or gas stations
- Use subscriptions to streaming services such as Netflix or Hulu instead of paying for cable.
Limiting the amount of impulse buying and needless spending is going to help you stick to your budget and meet your goals. It will also allow you to have a better understanding of where your money is going and not leave you with that “where did all that money go” feeling. From plugging these leaks, you are going to end up spending less money and be able to save more.
- Financial Wellness
Essay on Money Management
Students are often asked to write an essay on Money Management in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.
Let’s take a look…
100 Words Essay on Money Management
Understanding money management.
Money management is about how you handle your cash. It’s like a game plan for spending, saving, and making sure you have enough for important things. You keep track of what you earn and make smart choices on what to buy.
Saving Money
Saving means putting money aside for later. Each time you get money, you should save a part of it. This can help you buy big things in the future or have money in case of emergencies.
Spending Wisely
When you spend, think about what you need versus what you want. Needs are things like food and clothes, while wants are extras. Always try to spend less money than you have.
Making a Budget
A budget is a plan for your money. You write down how much money you get and then plan how to spend it. Sticking to a budget helps you not run out of money.
Investing is using your money to try and make more money. It can be risky, so learn and start small. It’s a way to grow your savings over time.
250 Words Essay on Money Management
What is money management.
Money management means taking care of your money. It’s like knowing how to use your pocket money wisely. You plan how to spend it, save some, and make sure you have enough for things you need.
Saving is putting money aside for later. Imagine you want a new toy or a book. If you save a little bit of your money every time you get some, soon you will have enough to buy what you want. It’s like filling a piggy bank; drop by drop, it gets full.
When you spend money, think about what you’re buying. Ask yourself if you really need it or if it’s just something you want because it looks cool. Sometimes, waiting before buying something helps you decide if it’s important.
A budget is a plan for your money. You write down how much money you get and then list the things you need to spend money on, like food, school supplies, and clothes. If you plan it right, you can also save some money.
Why It Matters
Handling money well is a big part of life. When you learn about it while you’re young, you get better at making good choices with money when you’re older. It means you won’t run out of money when you need it, and you can even help others. Plus, you’ll feel proud that you can take care of your money all by yourself.
500 Words Essay on Money Management
Money management means taking care of your money. It’s like being the boss of your own cash. You decide what to do with it: spend it now, save for something big later, or even put some away for times when you might need it urgently. It’s important because it helps you make sure you always have enough money for the things you need and want.
Creating a Budget
Think of a budget as a spending plan. It tells you how much money you have, where it needs to go, and what you can spend without running out. To make a budget, list all the money you get, like allowance or birthday cash. Then, write down what you need to spend money on, like school lunches or saving for a new bike. What’s left is your spending money. Remember, a good budget helps you not spend more than you have.
Saving is like planting a seed that grows into a money tree over time. When you save, you set money aside for later. You might save for a game, a trip, or just to have some extra cash when you need it. A good tip is to decide on a certain amount to save each time you get money. This way, saving becomes a regular habit, just like brushing your teeth.
Smart Spending
Smart spending doesn’t mean you never buy fun things. It means thinking carefully before you buy. Ask yourself: Do I really need this? Will I use it a lot? Could I find it cheaper somewhere else? Sometimes, waiting a bit before you buy can help you decide if it’s really worth it.
Understanding Needs vs. Wants
Needs are things you must have to live, like food, a home, and clothes. Wants are extra things that are nice to have but you could live without, like toys and video games. Good money management means taking care of needs first and then seeing if there’s money left for wants.
Dealing with Emergencies
Emergencies are like unexpected storms that can shake up your money plans. It could be a broken bike or a lost school book. This is why you have savings. If you’ve saved up, you can handle these surprises without getting stressed.
Making Money Grow
You can make your money grow by investing, but this can be tricky. It’s like giving your money a job where it can earn more money for you. Talk to a grown-up and learn about things like bank accounts that earn interest. This means the bank pays you a little bit for keeping your money there.
Sharing and Giving
Money isn’t just for spending on ourselves. Sharing with others can make us feel good. You might give some money to help people in need or support a cause you care about. This is a part of money management, too, because it’s about deciding how to use your money to make a difference.
Managing money is a big responsibility, but it’s also a powerful skill. When you learn to manage your money well, you’re in control. You can reach your goals, handle emergencies, and even help others. Start practicing these money management tips, and you’ll be on your way to being a money management pro!
That’s it! I hope the essay helped you.
If you’re looking for more, here are essays on other interesting topics:
- Essay on Money And Happiness
- Essay on Modesty
- Essay on Modernism
Apart from these, you can look at all the essays by clicking here .
Happy studying!
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Stopping these leaks in your spending will ensure that you meet the goals that you set in your budget and that you are spending your money wisely. Carry around a reusable water bottle to cut out needless spending on things to drink. When going shopping, make a list and stick to it—no impulse buying. Carry cash instead of credit cards to ...
Spending Wisely. When you spend, think about what you need versus what you want. Needs are things like food and clothes, while wants are extras. Always try to spend less money than you have. Making a Budget. A budget is a plan for your money. You write down how much money you get and then plan how to spend it. Sticking to a budget helps you not ...
In your essay, you should write about: the things you spend your money on where you buy these things how you save money while shopping. Impulsive buying is a widespread inappropriate shopping behaviour. We must manage our hard-earned money wisely so we will not overspend. Therefore, all Malaysian must have good financial planning. I usually ...