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5 useful money management tips you can start using today

5 useful money management tips you can start using today
No matter how old you are and how much money or debt you have, you can probably do better when it comes to your finances. Indeed, it is difficult to find a person who doesn’t need any advice or improvement in their financial situation. Money is a sensitive topic and often times people feel like their financial situation is too far gone or they simply don’t know where to begin when it comes to improving their finances. Well, don’t worry, here are 5 easy steps you can take to improve the state of your finances today:

Ask for a raise at your full-time job

One of the biggest mistakes most people make at their jobs is not asking for a raise often enough. Of course, sometimes this is not appropriate, for instance, if your boss is not happy with your performance or if you recently received a raise. But more often than not, you are being underpaid and it’s your job to fix this. Start by researching how much a person with your work experience and skills can expect to make and if you’re making less than that, talk to your employer.

Come up with a side hustle for extra income

If you have a bit of free time after your day job and family commitments, starting a side hustle can be a great way to get some extra income and potentially grown an entire business that can replace your day job as your main income source. While doing something like driving for Uber or becoming somebody’s personal assistant definitely works, it’s always best to choose doing something you love as your side hustle so you have more motivation and you can actually enjoy the hustle.

Start budgeting your money every week, month and year

Most people don’t like budgeting their expenses and keeping track of their finances, but it’s a proven tool that helps cut back on unnecessary expenses and maximize your savings. If you feel like budgeting and keeping track of your spending is taking up too much of your time, try to choose several categories of expenses where you spend most of your money and track those. For instance, it can be useful to track the money you spend on housing, transportation, food, online subscriptions and online shopping, as these are some of the things where most of the money is spent and wasted.

Pay off your debt

Having debt can add a ton of stress to our already difficult lives, and while it’s not always possible to quickly pay off your debt, you should focus on creating a plan and gradually paying off your debt starting with the debt that carries the highest interest rate with it - usually, this is credit card debt and personal loans, followed by student debt and mortgage.

Create passive income

One of the best things you can do for your financial situation is building a passive income. There are lots of options, the most traditional one is to create an investment portfolio and make money that way, alternatively, you can invest your money using peer-to-peer platforms like FinSocial and earn interest on your investment. You can also start a blog that will make you money on ad revenue or create a company that connects customers and workers.