Currently, one of the main goals of the vast majority of people is to get more money beyond what they already have. And don't get me wrong, this is great, everybody could use some extra cash. However, one of the key factors where we should focus our attention is not only on getting more money, but on learning how to manage the money we earn every month.
While building wealth is essential, it is equally important to protect your funds and spend them wisely. Your hard-earned money should be saved, invested and spent wisely and systematically to ensure long-term stability and liquidity. The best way to achieve this is to learn how to manage your money efficiently.
Luckily for you, one of the main features of Rizeapp is that it helps you improve your money management. Small but regular changes in your life can have a huge effect on your net worth. Today we bring you the best tips to improve your money management.
Planning is the first key to optimal financial health. If you don't know what or where you spend your money each month, there is a high probability that you should review and improve your spending habits.
Unless you can record each and every transaction you make, you won't have a clear picture of how much you spend. The best way to manage your money is to let your bank app do it for you.
Many people use their bank apps to track their debit or credit card purchases.
You can start with the right foot by using Rizeapp. Our app has an amazing money tracking feature that makes sure you know exactly where your money is going every month. The app helps you track every single purchase, so you can see how much your spending is going up or down each month for each expense category. It also lets you set goals and give yourself rewards for reaching them. You can even share your goals and progress with friends!
It is very difficult to get anywhere if you don't know where you are going. The first step to manage your money well is to know what you want to achieve with it. Goals should be short, medium and long term.
Having a financial goal allows you to stay focused and avoid overspending. Therefore, plan what you want to do with your money in the short, medium and long term. To meet your long-term financial goals, such as the house of your dreams, your children's education, retirement and much more, you should start investing in financial products. Remember to always set realistic goals with fixed deadlines. This will help you stay motivated and ensure that your money is well spent.
With Rizeapp you can assess your goals and see how well they are aligned with your current situation. Whether you're saving for a big holiday or planning for retirement, it's important to make sure that you're on track with your financial goals. With our goal-setting tools, you can work on your short, medium, and long-term financial goals for the year. This will help you focus on what's important and make sure you stay on track.
It is time to prepare for unforeseen events that may arise and affect your pocket, so one of your priorities should be to create your emergency fund. It doesn't matter if you start by contributing little money each month, the idea is that you can create the financial cushion you need in case of unexpected situations that could destabilize your financial life.
Ideally, your emergency fund can cover up to 4 months of expenses, in case you become unemployed, for example. Your emergency fund shouldn't be a giant balance in your checking account. You want to build up savings over time so that when the unexpected does come up, you're prepared for it. That's why Rizeapp makes it easy to build up your savings by automatically depositing your spare change into your account (feature in beta -coming out soon). You can start small and work your way up once you see how much extra money you're making!
Maintaining good personal finances, especially if you are beginning the process of better managing your expenses and income, will usually require making a number of sacrifices before you see results. For this reason, on more than one occasion you will have to cut back on expenses that are not a priority in your life.
This does not mean that you will not be able to enjoy the money you earn, and that from now on, every weekend you will have to stay at home or, you will never be able to buy those shoes you liked so much.
But it is a sign that you should start to be more proactive with the constant money leaks whose value you cannot detect at first sight, or the ‘ant expenses’. The latter refers to those small purchases that at first seem very economical and harmless, but when repeated over time, add up to a higher rate of expenditure than you thought at first.
If you already know your expenses and contemplate a specific budget for this type of expenses that are not "priority", you have to respect it strictly and avoid being so permissive with yourself when it comes to continue allocating money beyond the established.
Also, avoid compulsive purchases and take some time to meditate if you really need that product that caught your attention overnight; find a better balance between your social life and the income you generate and review those subscriptions that you don't really take advantage of in your daily life.
Rethink what's worthwhile and don't be afraid to say goodbye to things that don't really add as much value as you thought and instead take money out of your pocket.
Debts are the worst enemies of good personal finances. Controlling them is one of the first steps to take care of your own economy, and of course, save money.
Although in some cases there are not many options to escape from debt, avoid, as far as possible, living chained to installment payments. Your pocket will thank you, and in the long run, it will be easier for you to acquire that product or service you want without having to pay for it on credit for a long time.
Are you subscribed to streaming services you didn't even remember? Do you have a membership to a club or store you don't go to anymore? Are you paying for the gym month after month promising to go but never do? We know it's easy to forget about those subscriptions that you stopped using some time ago but that you still have active and are still being automatically charged from your bank account.
That's why it's time to say goodbye to what you stopped using and that still represents an expense for you. You need to think carefully and reconsider whether it is worth continuing to pay for something you don't use.
No one is born knowing: financial literacy is a field that you will become familiar with step by step. The important thing is to have the intention to improve your financial habits, and you can seek help from professionals and people who know more than you. An infallible option is to read books on these topics: you can start with the simplest ones, and look for more complex ones as you become more familiar with them.
Another option is to follow blogs specialized in these topics, such as the one by Rizeapp, which offers content for all those who want to discover new financial opportunities. In addition, with our insights service, we'll help you assess your assets and liabilities so that you can get a clearer picture of your financial situation.
Investing is a way to make sure you don't spend your money on something superfluous. But when we use the word "investment", it may seem that we are talking about something that requires a lot of prior knowledge.
Do you think so too? Well, it's understandable… But kind of an overstatement!
Everyone can invest, from people with a more conservative profile, to those with a bolder one, and from finance pros, to regular people such as you or me. Rizeapp makes investing simple and enjoyable. You can create a portfolio and start trading with just a couple of taps; or let our digital advisor build your portfolio on autopilot. Either way, you can start investing from scratch for just 1$.
The road to improving your money management starts with changing your own habits. Some of these changes will be easier than others, but if you stay committed to this transformation, you'll end up with excellent money management skills that will serve you throughout your life and, in the meantime, you'll have more money in your pocket.
Rizeapp is the perfect app for those of you who want to start learning new and more effective and secure ways to manage your money. It empowers you to maximize your happiness by saving, spending, and investing with your goals in mind. By applying behavioural science and the latest technologies, Rizeapp makes managing all your money easy and fun.