This can sometimes be a challenge and learning to be financially savvy does take time and discipline.
We have five common-sense tips that you can easily implement today and use as a foundation for managing your money effectively.
Create a budget
If you have never created a budget, it’s worth doing as it will give you an overall view of your finances and help give you control.
Your budget should include how much you have coming in and how much is going out over a period of time.
Be as detailed as you can and look at your bank statements so you don’t miss anything.
Drawing up a budget helps you work out where you can reduce your spending and plan for expenses such as buying a car or going on a holiday.
Set up an emergency fund
It’s easy to fall into a trap of living pay day to pay day, but this will become a problem when an unexpected event occurs.
Whether it’s a loss of a job or a medical bill, you can never know when you might need extra funds to cover costs or make ends meet.
You can be prepared by regularly setting aside a portion of your income into a separate account.
Your emergency fund should ideally have enough to cover about two to three months of expenses including rent or mortgage repayments, groceries, transport and utilities bills.
Shop around for a better deal
You wouldn’t buy a new TV or washing machine without comparing a few different stores and choosing the one that has the most competitive price.
This same tactic should be used for our gym memberships, phone plans, insurances and home loans etc.
In a competitive marketplace, product and service providers are all looking to retain and bring in new business, which is great for consumers.
Take the time to do plenty of research so you can be sure you’re getting the most bang for your buck.
When it comes time to renew a service, don’t be afraid to ask for a better deal especially if you’ve been a long-term customer.