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Many virtual assistants, and freelancers, in general, are frustrated in their efforts to make financial progress.
They may earn reasonably good incomes.
But an examination of their spending invariably reveals all sorts of hidden money leaks. These VAs keenly want competent help in managing their money but frequently don’t know how or where to get it.
For instance, modern families are skilled at painting their own homes but often have little knowledge of how to plan their insurance, borrow money at least expense, or how to invest their savings.
In reality, few virtual assistants are ever able to make progress without a plan and a system for handling money.
One survey found that people who plan to save, tend to save more than others do with the same income. Other surveys show that financially successful people know pretty well where their money goes, while those in trouble aren’t sure how much they spend on what.
What is Money Management?
Money management means gaining greater control over your income and expenditure.
Better management can be achieved by establishing budgets and analyzing income as well as costs.
Every single day of life revolves around money.
Monthly money management plays a vital role in everyone’s life. It is essential to make sure that you do not let your wisely saved money to be used up to pay pending bills and other late payments.
Today you can find money management and budget management software that will help you keep track monthly bill payments without having to check on deadlines and due dates.
Microsoft Money is one of the best money management software available on the internet. It is an easy to use budget planning & money management software.
The primary purpose of using the monthly budget software is to get a hold of all account balance and manage them in one place.
This software will enable you to know how much money you are left with to spend on regular mobile updates. Apart from using all the efficient money management tools, there are several tips that can control your monthly cash flow.
How to Begin Your Money Management Plan
Here are some details for operating a spending plan and an overall approach to controlling your money, to help you make financial progress and achieve family goals:
- Estimate how much you need to spend each month on necessities. These preliminary estimates cannot be exact nor rigid. You will be able to make more accurate estimates after several months of doing this. Newbie VAs especially need to make many adjustments in their estimated expenditures before they have a workable plan.
- Discuss with your family which are your primary goals, and how much of the remaining non-allotted money can be devoted to these goals. You will get a variety of views. A husband may feel that accumulating a cash backlog should be the family’s primary goal.
All these wants need to be considered, and often, compromised.
But as the family observes that there is just so much money to be distributed among several wishes, its real goals will become more evident.
One of the most significant values of the spending-plan way of handling money is that it helps clarify family goals as well as provide a systematic way of achieving them.
A skillful money plan is a great way to solve the money problems that perplex many families today.
Few families can make progress without a definite plan for handling money.
If you want to control your cash outflow, stay safe from making money management mistakes and save for the future, make sure you implement the tips below.
10 Money Management Tips for Virtual Assistants
Write a Cash Flow Statement: – Write down every bit of cash outflow, both income and expenditure of month. Be aware of your spending and make out whether the expenditures that you make are essential one or not.
By jotting down your expense, you will understand where the cash leaks are. Categorize the spending by determining whether they are regular shopping bills, monthly payments or loan payments.
Right after you discover the cash leaks, try to find out if they are unavoidable or avoidable. If they are not inevitable, then try to prevent such spending. If it is unavoidable, concentrate on other pain points in the budget.
Plan spending: – It is essential that you plan your spending so that you can take care of your needs. Know your regular expenses.
Start saving: – Smart money managers think about their future and thus try to build an impeccable credit reputation.
To establish a good credit record, live within your means, pay off your bills on time, do not go overboard with debt and stick to your monthly budget.
Saving is a wise choice and should be adopted for future financial security. Know the expenses that are essential and optional and establish priorities accordingly. Utilize your budget worksheet as a guide while setting up your budget.
Save small amounts: – So you’ve started saving but how much should you save. The amount may be small, but do not be discouraged. Regular saving will go faster than you can imagine. Make your family members understand the importance of saving so that they can help in controlling cash outflow as well.
Avoid excessive use of credit: – Avoid taking too many loans. Beware of loan apps and while applying for credit, make sure about installments that fit into your budget.
Stay away from spending leaks: – Spending small amounts here, and there can add up to a surprisingly significant number. So, write down every penny you spend and have a look at your spending leaks then try to control them. This is especially important when you go shopping.
Wants seem to be greater than needs. At times, you may end up shopping for something that you do need. Avoid such habits.
Have an emergency account: – Expect the unexpected. Emergencies are a part of life. Keep sufficient funds in a savings or fixed deposit account to deal with any unforeseen circumstances.
Be prepared to take the risk: – Risk is an integral part of life as well. While investing money, you should be prepared since the returns may or may not be fabulous.
To earn high rewards, you have to assume a fair amount of risk. So, choose your investing products depending on your goal, knowing that the amount that you have invested may not come back to you.
Make your money work for you instead of investing in betting where there is a zillion to one chance of winning.
By following this money management advice, virtual assistants and other freelancers can be financially healthy even in an unpredictable freelance industry. Keep track of how much cash is coming into your household and where and how it is spent.
Check also: Momentum Credit Kenya
Recommended VA eBook from Amazon: The Bootstrap VA: The Go-Getter’s Guide to Becoming a Virtual Assistant, Getting and Keeping Clients, and More!
Author Bio: Sohail is a content marketer and a blogger, currently associated with Smiletutor.sg, an online tuition agency in Singapore. His hobbies include writing, reading books, traveling and gardening.