Money management strategies can actually be quite simple. These three easy money management techniques will show you how.

Smart budgeting practices and cutting spending can help you make the most of your money.

Sometimes, when I have suggested to clients that they should increase their savings, they tell me that this is impossible as they have too many expenses. After paying the rent or mortgage, school fees, food, transportation, and daycare, there is little money left for anything else. Isn’t it better to use your wages for our day-to-day expenses so that you can manage, rather than worry about tomorrow?

The problem with this is, of course, that at the end of the day, it either becomes impossible to retire or you are left to face old age with very little financial support.  Keep in mind that your pension plan may only give you a third of your current income.  If you find it hard to live on today’s paycheck, imagine how much more difficult it will be down the line.

 Short of going homeless, hungry, or dying young, what can be done to ensure you have sufficient funds to meet current and anticipated expenses? 

Firstly, reevaluate your expenses. What do you really need? While you don’t need to live a totally Spartan existence, you may find that you’re wasting money. Sit down and make a list of your regular expenses – and then see what you can trim or change.  Just because your children are used to having a cell phone with Cutting credit card debtCredit: Image: luigi diamanti / FreeDigitalPhotos.netInternet, this doesn’t mean they need to continue to own one…at your expense.

Secondly, consult your financial advisor on how much of your income you should realistically put away in savings.  With a bit of professional advice and calculation, you may be pleasantly surprised. And then, once you have come to a conclusion, look into some smart investments.

As it’s impossible to predict an investment’s return, it’s a good idea to diversify between stocks, bonds and cash.  And as you approach retirement, begin moving your money into “safer” investments.


It may be impossible to find “extra” money for savings.  So do the next best thing, and trim your budget to create enough money to put into savings.  Having investments independent of your pension plan is the only way to have a dignified retirement.  Do without today so you may have tomorrow. 

 For further ideas on how to manage your money even on a low salary, read:

How Simple Money Management Strategies Help You Survive on Less Money

Disclaimer: This article is for educational purposes and is not a substitute for investment advice that takes into account each individual’s special position and needs. Past performance is no guarantee of future returns.