Every little bit of money counts in today’s economic climate, and for many, it’s about making what they have, work for what it is that they need.

Money management is an important skill to learn as it helps boost finances with very simple steps. Money management can ease the stress and financial worries of people as it allows for more transparency and control over where funds may be going and can erase unnecessary spending.

An easy way to self-manage money is by implementing a budget to use available funds on. There is no right or wrong way to budget, as it is up to personal preference and responsibility on how and where money needs to be spent. A budget should account for unexpected expenses, expected expenses, and saving money.

A budget might include or cover:

• Rent or mortgage payments
• Food
• Savings (a recommended amount that should be put aside is 15% of gross income)
• Insurances (car, health, pet, etc.)
• Unexpected expenses / an emergency fund]
• Gifts (ie. birthdays, holidays, etc.)
• Holidays

There should always be a reason to create a budget. This reason may be a goal, an approach, or to be able to pay off a debt – by knowing the why behind it, it can be easier to stick to a budget. It is also important to actually put the budget into action and implement it.

An effective budgeting strategy is to set aside savings as soon as possible, which reduces the risk of spending that money. This strategy can also be used to help pay off debts or loans.

Splitting large expenses that arrive at certain times of the year over the course of several months can help minimise the amount required as a lump sum at the time that payment is due.