Money management is about making your money work for you by putting work into every dollar. Having a solid plan for your income will give you  clarity and confidence to stay on track through all of life’s changes. 

Plan your path to financial independence using proven strategies and developing  money management skills. 

1. Arrangement of the basic income 

If you want to know  where your money is going, start by updating your budget.With this live document you can keep track of your monthly expenses and manage what comes in and what goes out. 

If you’re not sure how to budget, the 50/30/20 budgeting system is a great place to start and is easy to follow. 50% bills and expenses, 30% needs, 20% savings and investments. You can find more information in our spreadsheet and check exchanges using our free banking app. And to simplify (and  avoid temptation), separate your savings from your everyday account. 

Create your own “Friday Budget Time” each week to keep it going.Your budget will change based on your lifestyle and expenses, so use  50/30/20 as a starting point and adjust the ratios to suit your needs. Your budget should be flexible and not restrictive. 

2. Targeted savings 

Learning how to save money is important, but knowing how to act on that savings is the next big step. Research shows that cost savings increase  after a decision-making session. How to take advantage of this? For example, let’s say you set aside 20 a month for savings. Think about your financial goals and make a plan to use that money. 

If you have many goals, dividing your savings into smaller budgets will make them easier to achieve. Of the 20% savings budget, 10% can be used to build an emergency fund (3-6 months of living expenses) and 10% can be used to travel to Europe, except for housing savings. 

3. Financial automation 

We recommend setting up automatic payments so you don’t miss any bills. 

To set up automatic payments, calculate your regular payments and make sure your bank balance isn’t less than that amount. That way, you don’t have to worry about extra fees or delays. 

4. Accreditation 

 Turn your debt  shame into control by creating a money management plan, stick to it, and stay debt free.The best way is to tackle your most expensive debts first – the debts that pay the highest interest rates. 

The 50/30/20 budgeting approach can be used to pay off debt as well as to save. For example, you can adjust your budget percentage to 50% spending, 25% wants, 10% savings, 10% salary, and 5% investment. 

If you’re not sure how your credit affects your finances, we encourage you to check your credit score every three months and request a free copy of your credit report.

5. Invest wisely 

If you are an employee of a company, you can fill out a form to choose to make an employer contribution (pension guarantee) equivalent to 10.5% of your total per year into a pension account of your choice. This share will increase to 12% in 2025. 

For the self-employed, the retirement pension is not mandatory.If you are a contractor or contractor you are not entitled to a pension. In such cases, you should save a portion of your income for retirement and take advantage of the tax benefits. 

Exploring wealth building options other than pensions. Consider setting up an income stream and investing in real estate, stocks, mutual funds, exchange-traded funds (ETFs), bonds, gold, cryptocurrencies and micro-platforms. Like everything related to finance, diversification is a smart strategy.

6. Use your credit cards strategically 

Credit cards can be a great tool for earning rewards if used wisely. You can earn frequent flyer points to pay for  travel. You can pay for your flight, change to business class or use it for accommodation. 

The concept is this: When you use a credit card to make purchases, you earn points and  pay off the balance before interest accrues.The bank also offers thousands of bonus points when customers sign up for a new credit card. 

If you’re working on building credit,  using credit cards to demonstrate good credit is an effective strategy. However, always be careful when using credit cards. These strategies are not for everyone. This is especially true for those who have paid off  or gotten out of debt. 

7.stick to the plan 

It’s easy to get overwhelmed by your financial situation. Especially when you’re not where you want to be. It may not reach  independence tomorrow, this year or next year. Money goes down, so it’s important to follow a plan and establish good habits to support money growth.