A 5-step plan to make you more responsible with your money


Your money can do a lot of things for you, but only if you know how to spend it responsibly. It’s possible to earn a lot of money, more than you need to pay your bills, buy the appliances you desire and provide a comfortable life for you and your loved ones and yet fall short of meeting these needs only because of how you use it. Learning to spend your money responsibly requires commitment and a good dose of self discipline.

It means drawing a line between all the things you want and all the things you need. Once you start spending it responsibly, you’ll find that you never have to worry about not having enough to cover your essentials. Below are five easy steps you can take as part of a plan to make you more responsible with your money.

Photo: Unsplash.com

Set your financial goals

It gets much simpler to use your money wisely when you have a couple of things in mind that you eventually want to spend it on. This automatically curbs your inclination to spend money on a whim on things that you do not really require. Having goals keeps you on your saving routine and enhances healthy spending behaviors.

Get organized

For any plan to succeed, organization is critical. Getting your finances organized means paying your bills on time, making payments to debts and loans on the scheduled time and always having money saved for emergencies. Being organized protects you from being caught off-guard or getting into situations that are harder to come out of than they should be.

Make a budget

Having a budget in place is also part of being organized. Every cent you earn should be well planned for. This eliminates chances of spending money on unnecessary things. With a budget you’ll not find yourself cash strapped in the middle of the month, wondering where all your money went. You’re able to prioritize and spend wisely.

Photo: Unsplash.com

Check your credit score

Your credit score determines your ability to borrow money from money lenders. The better it is, the more lenders trust you. If it’s not good, they count you as a risk. Knowledge of exactly what your score is helps you to plan ahead and know what your options are when you need to source for money besides your income. It also helps you to know what boundaries to not cross in order to sustain a good score. There are many digital platforms where you can check your score for free, use them.

Maximize your money

As much as you have to spend money on some essential products and services, you do not always have to spend as much money as you currently do. A little bit of window shopping will bring you across things of the same quality at a lower price, the same with services. There will always be expensive things on sale, and much cheaper options elsewhere. Before you dig into your pocket, make sure that’s the best deal you can get anywhere.

With these five easy steps, your money spending habits will be so much more responsible.