Smart Ways to Manage Your Money

Whether you’re starting over, rebuilding savings or making strides toward financial goals, there’s no wrong time to boost your money management skills. With a few key habits, you can make your dollars work harder for you — and achieve long-term success.

Budgeting

Smart ways to manage your money a clear picture of how much money you bring in and where it’s going is the foundation of smart money management. Record your spending (either on paper or with apps like Mint, HomeBudget and NerdWallet’s budget template) to find areas where you can cut costs. If you have extra cash left over, direct it toward debt repayment, savings or another financial priority. And if you can, automate as many of your money moves as possible to create the most ease and accountability.

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Before you buy anything, ask yourself if you really need it. That’s the best way to stop yourself from impulse buying and make the most of your paycheck. For example, shop the sales for items you know you’ll use and cook at home more often to cut dining costs. Or research local events and group discounts to save on activities you enjoy.

For big purchases, consider paying cash if you can. You’ll usually get the best deal on an item and avoid costly financing fees. It’s also worth researching investments that match your risk tolerance and life stage. If retirement is 20 or 30 years away, for instance, you might want to consider investing more in stocks or other riskier assets.