As the year draws to an end, I will be sharing with you some personal finance tips that helped me manage my finances and simply life as well as investing.
1. Bank Accounts:
Let's begin with bank accounts. In 2016, I stuck to the use of bank accounts as an outlet for cash inflows and simply as that.
Not even a peny was allowed to stay in it.
My Salary and other streams of income pass through it and are moved to where they really belong - (Investment accounts).
Keeping too much cash in your bank account is not something I'll advice. The worse form of this is when the bank account is a current account. You don't only lose the value of your money over time, you also get charged.
Another thing to avoid is the little ATM or VISA charge. The more transaction you make, the more you pay.
2. Carry less Cash:
When you carry less cash on you, there is greater possible of you living within your means. This has been my way of controlling my spending. This is a powerful tool and if practiced well, you turn tospend less and even in the case where you have loads of cash on you, you won't feel like spending it on unnecessary items.
In my next post, I'll share some of the apps I use to manage movement of money and personal finance.