Money management is a significant topic that I cover in my new self-development book, Time is Money. Since I set up my business at the age of nineteen I had to manage my money better in order to live and maintain my business for the long-term. It is always important to remember that managing your money well can give you more flexibility to fund your endeavours. These are some of my top money management tips that may help you on your way to getting the most out of your money.
1. Create a Budget Plan.
A quote I personally love from Time is Money is “Money comes and goes, but what you do with it when it comes is what defines its value,”. What I meant when I wrote that was we can acknowledge that money needs to be spent on things, but we can also control (to the most part) what our money is spent on by creating a budget plan. Calculate your monthly income, or multiple incomes, then designate a budget to the things you need and want to cover for that month. This keeps you organised, and the more organised you are with your money, the less likely you will check your bank account one day and wonder where your money has gone.
2. Establish What Type of Spender you are.
Everyone has their own personal indulgences. Myself included, and some more than others. It’s always good to try and identify the bad patterns in your spending habits that you can change to benefit you in the long-term. For example, I share in my new book that when I used to work in the city I would always take out cash for what I needed to buy instead of using my card. However, I would always spend the change from my cash purchases on something I didn’t really need (but wanted in the moment) because I physically had this cash on my person. When I realised this and started making purchases on my card, I was only spending what I wanted to spend because I never really had cash on me. For some people this is the other way around – they may overspend or needlessly spend using their card and have a better handle on their money when they have cash on them. Work out what your bad patterns are, and devise a plan to change them.
3. Priorities, Priorities, Priorities!
Live life while you’re young is something I’m told very often, but from a young age I’ve understood that I want to live a comfortable life, and that ambition comes with hard work. Prioritising where your money needs to be is an essential step towards financial success. It’s one thing to create a good budget plan, but what if an important bill or invoice needs to be paid but you’ve designated yourself a luxury shopping budget for that month. A sacrifice would have to be made. You would need to prioritise that payment, unexpected or not, over those really nice shoes you’ve been longing for. It’s not always easy to prioritise needs over wants, but understanding that it is necessary in some cases will make you feel better about it when it needs to be done and allow you to manage your money better.
4. Generate Multiple Sources of Income.
We all have talents, and in this age of technology, almost any talent can be monetised and bring you in some extra income if you do it the right way. Youtube is a magnificent tool. I woke up one morning and decided that I wanted to become a cupcake baker. I browsed a few videos, got to practicing and now I get paid to bake for my nearest and dearest. This is also a skill I can expand on in future, so not only has it provided me with a new source of income, it has given me the option to explore a new business endeavour if I would like to. You can do the same with something you’ve always wanted to get into. Whether it be baking, designing or sketching, understand that there is a market for pretty much anything and with commitment and a little financial investment, you could be dabbling in a new talent that can reward you financially.
Time is Money
My self-development book Time is Money is based on my experiences and the experiences of other creatives in business and creative industries. These blog posts are based on my own content from the book, and aims to give people an insight into what they can take away from Time is Money. To find out more about ways to manage your money and ways to monetise your ideas, you can purchase Time is Money at timeismoneyuk.bigcartel.com
Written by Tannika Williams-Nelson – Author & Entrepreneur