Gain wisdom in spending and saving money, read 21 tips to achieve independence and financial stability

Do you suffer from lack of money? Sometimes the reason is not the amount that reaches our hand in a month, but rather the behaviors and ways of dealing with this money. Read 21 tips to learn to manage your money properly.

Financial stability is a dream for many people, whether they are entrepreneurs, students, employees or otherwise … But in light of an unpredictable economy, it becomes more difficult to plan expenses, and with it the importance of learning how to organize your money Especially those who want to start their own business.

To help you in this matter, in this article we will talk about 21 simple tips for those who wish and dream to enjoy a safer financial life, leading to the desired financial independence.

But before anything, there is a basic thing that you must think about: in order to actually learn how to deal with the money that you get: you must always monitor every amount that comes into your hand and every riyal or pound you spend, and if possible record all that so that you do not lose control and become much more difficult. Set the command. 

21 Tips to Learn How to Organize Your Money

1- Register your fixed expenses 

Fixed expenses are those amounts that you pay each month, such as rent, water, electricity, phone, internet … etc. In addition to all taxes that you pay on the property, property or other during the entire period of time that you pay.

Having a record of fixed expenses is an important and necessary thing, and it is the first way to learn how to organize your money, to know the amount of total income that remains each month and you can use it for various purposes, such as saving or even spending on entertainment activities. 

If you are an entrepreneur, you must also have control over the fixed expenses that arise from your business, such as rent, cost of raw materials, labor and other production expenses. 

There are several ways to do this control, but one of the simple ways to do this is to prepare an Excel table , for example, it is from the documents that are saved on your computer or cell phone and you are not at risk of losing them, and the excel  does all the calculations for you automatically so that it collects all the expenses That you have and subtract it from your monthly salary or earnings. 

2- Invest about 10% of what you earn each month

After you have paid the fixed expenses that you have, try to allocate at least 10% of your income, profits, or investment revenues to invest them in areas that make you money. 

If you are a freelancer , this percentage is applied to your earnings for that month.

In the beginning, it may be “difficult” to give up about 10% of the salary, especially if this salary is about to meet your needs, but we advise you to save the percentage that you can, it does not need to be 10%, but it can be 3%, for example.

If you can really adjust to your lifestyle, you will start to see the first results. 

3- Separate your personal expenses from your commercial and business expenses

This tip is great, very useful if you want to learn how to organize your money.

There are still many young and middle entrepreneurs who suffer from difficulties in separating their personal expenses from those of business and business, resulting in material losses that sometimes reach the point of bankruptcy.  

This is a harmful habit, as you cannot tell if your business is really getting you back .

Whenever you watch yourself, you find that you are withdrawing money from the fund, but you do not know practically why these withdrawals took place, and this may affect your personal life and the life of your family with you, as well as the business, as it harms the promotional work that you can do because of the lack of money.

Also, mixing personal expenses with business expenses may give a false impression of ” getting rich ” and motivate you to spend more than you can spend at that moment.

Therefore, we recommend that you have two separate bank accounts in case you are an entrepreneur. This makes things easier for you.   

4- Deal wisely in investments through the bank or bank

Banking investments are somewhat risky for medium and small businesses, as they represent a long time of waiting until bank interest and profits are obtained that can be withdrawn and acted upon. 

We know that this cannot always be avoided, as it is beneficial to retain financial resources at the initial stage of entrepreneurship. But when you need to make physical investments, always choose a few periods of time (a period of 6 months or a year) and always search for the details of these investments to choose an alternative that requires you to pay lower interest rates on profits. 

Remember that financial investments must be added to the schedule of fixed expenses for the entire period of the contract signed for that investment. 

5- Pay all the sums and bills that come to you

If you have any financial investment with banks or you have withdrawn a loan, you should pay the installments due on you as soon as possible to reduce the contract time and of course the interest deducted by the bank as well. 

But pay attention to an important aspect, we are not talking about that you have to go through economic hardship to pay the largest possible amount of your debts and dues on you. The ideal is to use the ” remaining ” money to anticipate some installments or upfront payments and to not make any adjustments to fixed expenses or to the fund in your business that force you to spend more. You are not at best to spend more. 

An example of money that can be saved to pay debts is the possibility of delaying payment for something you do not have to much for and that can be postponed until later. Then I used the amount that I would spend and pay it in payments and installments.

6- Try to get to know the types of investments that exist in your country

Investing is a way to ensure that you don’t spend the money you have on something superficial and keep it by running it to get you back in profits .

Anyone who can invest, starting with the one who has the characteristics of conserving money and does not like to risk it, and ending with the courageous person who loves risk and is indifferent to his exposure to some losses in exchange for higher profits. 

In this situation, we recommend that you study the different types of investments and choose the one that best suits your qualities and convictions, and talk to people who know well about investment areas and trust them to benefit from their opinion.

With regard to the culture of saving in the Arab world

Although the idea of ​​saving is still modest in some Arab countries, where there are many Arabs who do not mainly have a culture of saving , it is still one of the forms in which money can be saved. 

In fact, the idea of ​​saving is considered a difficult idea to implement in some cases in the Arab world due to high prices, low salaries and wages in general, as well as high consumer rates in these countries.

According to a study (World Bank survey) conducted in 2014 ( according to this video from YouTube ) it was found that the percentage of people who have a culture of savings in the Arab world is only 7% compared to 36% in East Asian countries and 12% in European countries, for example, which is really low. .

As for the percentage of benefits that a person can receive from savings accounts, it varies greatly from one country to another according to the laws prevailing in the country and banks, and it also depends on the value that is placed for saving and the period of time during which money remains deposited in investment.   

There are several forms of investments, including: stocks, bonds, mutual funds, exchange-traded funds known as Exchange Traded Funds, and others.

7- Set broad financial goals to reach them

Before anything else, if you want an article that talks about the proper way to set goals, you can read this article, click here .

If the main goal, for example, is to increase the sales numbers achieved by your business, then the sub or secondary goals or KPIs (i.e. the interim goals) could be, for example: doubling the daily sales numbers during the next six months, increasing the average sales achieved from customers who abandoned the product in Cart and did not return to complete the purchase by 20% … etc.    

It is very important that you set goals for your business, and goals related to organizing your finances so that you can actually reach that.

When you set interim steps and monitor results, it becomes much easier to follow things and analyze the factors in which you need improvement or uncover practices that achieve good results for their exploitation and re-application.

8- Always try to buy with cash and do not rely too much on installments

Therefore, buying in cash is a great strategy to save money, as it is prohibited to spend in cases where you do not have money, so do not rely on borrowing or installments, or remain captive of the credit card.

Many companies and institutions give discounts on cash purchases, try to use that as much as possible.

9- If you have a credit card, use it wisely

As we mentioned in this advice: We do not mean to refrain from using the credit card, in many cases its presence is necessary and facilitates many things, but we mean that you should not always rely on it and exaggerate its use without paying attention to the possibility of returning these sums that you consume .

Our advice is to avoid using credit cards in cases where you have the cash to pay , because in some cases, the installment of the amounts through the credit card may lead to the formation of interest that you pay to the bank in addition to the amount. When the bill arrives. 

10- Adjust non-essential expenses per month

If you want to really learn how to organize your money, you must know the distinction between basic and essential expenses and those expenses that can be deferred to a later time.

But we know that sometimes, people want to have a little fun with a small portion of the money they spend on entertainment, by going out with friends for example, traveling or buying a product that is not considered a basic need. 

In these cases, our suggestion for you is to put a limit on miscellaneous charges. Set aside a small amount for recreational activities, for example. 

We know that your goal is to save money, but if you are forced to make a lot of sacrifices in return for this, you may give up and give up on this path. Under these circumstances, setting some small rewards for achieving some small, interim goals may represent an incentive to continue. 

11- Depend on personal money management applications on cell phones

If you are not accustomed to using charts and tables, and you want apps to control your expenses, there are software and applications specialized in the field of money management that can be useful to you.

Examples mention the application of expenses , the application I calculate it is true , the application of my wallet the My Wallet … etc you can download these applications on your cell phone. 

12- Try to increase your income

If you are learning how to organize your finances, it is natural that you also think of methods that will help you increase your income and money. There are many activities that you can do at home and give you an income and return. 

One of these areas that are very popular these days is working as an affiliate or affiliate marketer , by marketing other people’s products and services in return for getting a commission for every sale that is made.

Also, if you have creativity and want to produce content, you can set up your own blog , write a topic that you like to talk about and are easy to explain or teach. In this context of content production, you can turn into a digital producer and set up an online course in which to earn money.

Whoever has a YouTube channel or profile with a lot of followers on Instagram   can turn into a digital influencer , and make a lot of money by establishing partnerships with brands, selling products and displaying ads through Google Adsense . 

For all of the previous examples, it suffices to have a computer and an internet connection.

13- Try to maintain an emergency amount that you use when needed

Freelance workers have more difficulty organizing their finances as they do not have a steady income.

In order for these workers not to encounter surprises, they must set average numbers for what they earn in a month and every 3 or 6 months, and identify the time periods in which they earn higher / lower than that due to seasonal factors, for example, and try to leave a certain amount for contingencies. 

The ideal is for this amount to be at a minimum sufficient to cover your fixed expenses that you are exposed to per month, and to cover all of your orders during the period in which you expect to be exposed to less sales or the lack of sufficient customers, if this amount can support you for a period of at least 3 Or 4 months would be so wonderful.

To get to that, try to consider saving a small portion of the proceeds in the months you sell well.

14- Try to compare prices before buying

This advice is provided by some people only, although it can actually help you to save a good chunk of money, just because you did not search for options available on the Internet and rushed to buy you are exposed to a higher amount? Do you think this is good? 

Our advice to you is to compare prices online before purchasing, and then choose the one that best suits you.

There are some sites that help you with this, such as ( Bkam.com ), which is a site that helps you  search for purchases and compare prices and offers . 

Another alternative is to use marketplace and e-commerce filters to find products whose prices are reasonable. These two examples apply to the physical product market.  

If you are looking for a digital product, such as online educational courses and e-books , you can search through Facebook groups or register in producer lists, to follow offers and make a comparison between prices. 

15- Try to take advantage of discounts, various offers and discounts

If you want to learn how to organize your money, you should not lose sight of any offers or discounts related to the material or product that you want to buy, especially because there are great opportunities for saving money.

The downloads and qualifying of the best examples of events and activities you should be exploited as it should, competitions and voting programs in exchange for a discount is also good ways to save some money.

Point programs (earn points, accumulate them, and exchange them for free products) is a great approach. In this model, a certain amount of points are accumulated according to the program for each purchase and then exchanged for other products and services for free, such as flights, for example. 

Most credit cards offer such programs, and registration for them is free. Case in point: the bonus points program offered by the Commercial International Bank in Egypt . 

There is also Gearbest  , a popular Chinese site that provides points when registering for it, when you write a review on it, or when you recommend its videos to your community or friends, and you can switch these points to get discounts . These discounts may sometimes reach 30%. 

Watch this video that talks more about it. 

There is also another site allows you to purchase points bonus is the site Bang Goode ( a Bang Good ) Chinese site also works in a manner similar previous site, also you can earn points bonus by creating an account for you at the site, invite friends to the site, write a Review … etc 

16- Try to subscribe annually or monthly. Sometimes it may seem cheaper

This advice is very smart for those who periodically consume a product or service: such as coffee, tea, milk boxes, pizza or pasta meals, Japanese food … newspapers, magazines, internet services, and subscribe to some websites on the Internet to buy clothes or home supplies … etc.

Think about the possibility of subscribing, monthly or annually, in this way you save much more than if you bought separately, in addition to the clear benefit that lies in receiving products through your home. 

An example of this is the annual subscription on Amazon Prime , where the annual subscription is $ 99, with the first 30 days being offered for free for a trial.  

In the digital field, language teaching sites are an example of products that are traded through subscription clubs , and it is a membership area that represents virtual learning environments in which students can consume the available materials in exchange for a subscription fee they pay (this of course is one of the payment methods but there is such These sites have other capabilities and payment options) …

17- Do not hesitate to buy some used materials

If some used materials can be purchased instead of new ones and are in good condition and can provide the same advantage and benefit that new products offer, why not think of buying the user from them?

Clothes, furniture, household utensils, libraries and books … are examples of things you can buy second-hand and save a good amount of money.

There are many platforms on the Internet for this, including the user site , which is a platform that represents an Arab market on the Internet that provides free direct advertising service on the Internet for any goods or service that you wish to display or request. 

There is also a dubizzle site in the United Arab Emirates, which also provides the ability to buy and sell any product via the Internet, even new and used clothes alike. 

You can also participate in Facebook groups and share products and services with other participants. Such as the group ( buying and selling Amman ), and others … 

18- Record every amount spent, no matter how trivial or small

The small expenses that you spend daily in restaurants in exchange for ready meals, transportation such as taxi or Uber apps, cream, taxi plus … etc. Going to attend the cinema frequently, are examples of expenses that can be an obstacle to savings.  

Where you spend money without noticing it, and when we look at the sum of these small sums, we find that the amount is large and not insignificant. 

Our advice to you is not to ignore such small expenses . Although they may appear small and minor, they build up throughout the month and can lead to problems. 

When possible, try to walk, or use public transportation, as it is an alternative and less expensive option. 

All we mean in this advice is to control your spending on these matters, not to cut off from them altogether.

19- Try to avoid eating a lot in restaurants

This advice may seem repetitive and we have talked about it a little bit in the previous advice, but given its importance, we want to talk about it separately.

Eating out is expensive depending on the area of ​​town in which you operate. For this reason, we suggest that you look for cheaper options or you can take food from home and eat it at the workplace if possible and you have a microwave to heat the food. 

Also, our purpose of this advice is to tell you moderation, then moderation, in order to learn how to organize your money, not to completely refrain from going to restaurants, okay?

But if you work at home , it will be much easier to cope with eating home food, and not to go to restaurants a lot, especially since eating home is healthy and good for you, as you enjoy more control over the type of foods you consume, and you also control the way That it was prepared with. 

20- Pay the bills as soon as you receive the salary

It is not considered good at all to postpone paying bills, as you may not always have the money to pay them, not to mention that this act may leave room for doubt and you may lose your credibility and your reference if you need a loan from the bank, for example.

We have two suggestions: one is spending less money (which is what we’re talking about generally throughout this article), and the other is to pay the bills as soon as you get paid and not leave the payment until the due day. 

Thus, you avoid paying any fines or interest for late payment.

21- Avoid wasting the remaining amount – in case something remains

A very important advice if you want to learn how to organize your money to the fullest extent, because many people think that there is little left, it is not necessary and it is useless to keep it, but no matter how little the amount is, do not waste it at all, sometimes we need the pound or riyal and we do not find it.

You have many opportunities to get an exceptional or seasonal salary bonus, including because of an occasion such as holidays, a reward for discipline at work, or a part of the company’s profits that you get annually, or money from other free work that you do, so try to hide What can be saved.

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