Tips for Spending Money Wisely

Dealing well with money means that you use your money to squeeze as much quality of life as you can. That does not mean that you buy a lot of stuff or that you have to be very rich. It mainly means that you use your money as a tool to experience more freedom, joy and meaning. These tips will help you to achieve that step by step.

1. Live below your means and make a profit
This is such an important idea: live below your stand and make a profit. What does this mean? Simple – you spend less money than you earn. If you earn $1,500 you ensure that you spend a maximum of $1000. And from there you do your best to increase the difference between income and expenses (your profit margin).
Make it your goal to:
To make your quality of life as high as possible;
While you make the expenses as low as possible.
You are looking for the sweet spot between price and quality. For example, owning a car can increase your quality of life. You opt for a car that meets your practical requirements, requires little maintenance and low consumption. That requires creativity and that is perfect. Because creatively shaping your life contributes enormously to your quality of life

2. Solve your debts
Debts can be a terrible burden. Whether you have a student debt or credit card debt, debts are always very annoying. It can suffer a lot of worry and stress. Try to be the first to pay off your debts (or at least as much as possible) so that you can start with a fresh slate. Pay off debts, how do you do that? To pay off your debts you need a lot of discipline anyway. Because large debts take a long time to repay. You have to start paying off your small debts, if you have repaid them you will quickly feel good and you will feel more inclined to continue.
Sort your debts, start with the smallest and finish with the highest.
Reserve an amount every month to repay a debt. Solve one debt at a time and do not redeem multiple debts simultaneously.
Once you have repaid a debt, do not change the amount that you outsource per month to repay your debts. Just continue as you started, do not become overconfident.

3. Automate your money
It is wise to automate your money. Make sure that your fixed costs (insurance, gas, water, TV, internet, pocket money for the children, etc.) are automatically transferred every month. You can set up these periodic payments with your bank (internet banking). The big advantage of automatically transferring your money is that you ultimately know exactly what you are left with. It will take some getting used to hand over your personal finances, but in the end it is a burden that you give away. You do not have to worry less because it all goes by itself!

4. Earn extra money
Many of your financial goals can be reached to manage your money wisely, but also to earn some extra money:
Change of job. Not every employer is able to give you a wage increase, if you can earn more money elsewhere, then do that. Sometimes you have to put yourself first!
Earn free money on the internet. On this website you can find a lot of information about free money on the internet. This way you can earn dozens and even hundreds of euros per month!

6. Budget, budget, budget!
The most important thing in keeping your financial finance in order; make a budget. If you spend less money than there is, you will never end up in debt. Make sure you know how much you can spend and what your equity is. A guideline for a budget; 50% of your money goes according to your needs, 20% goes to your savings account and the rest goes to things you want but do not really need. It must of course remain nice!