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Dario in Stack That Money,

​How to manage your money wisely?

We all come to a point where we don't have any more money left in our pockets. Is it because we are living paycheck to paycheck, or we are just lazy to put some money on the side each month?

Fixing this situation is very complex, because if you are not familiar with saving or managing your money, you may be losing it. Savings accounts are overrated, because YOU can be your banker.

Here's a few tips to help you become a better money manager:

1. Do NOT get a big tax refund each year.

Having some tax refund can be a bit of a problem when it piles up. What are you going to do with this sum of money? Because you don't want to spend it on stuff you don't really need, save it up for emergency situations, month by month. You never know what's coming!

2. Have everything planned

If you want to be successful in money management, you have to know exactly where your money goes. You have to know where you spent a hard earned penny, and why. The method is simple - write down every expense you have. At the end of the month, ask yourself did you really need that item from the store, or you could have spent it on something more important. You will know better for next month, as you gain experience in this. Set your priorities and you will profit!

3. Spend only on what you really need

Now, you are keeping track of how much money you are making, spending, how much goes to your emergency pile, but the most important part is, what are you spending it on?

Are you in some groups that charge monthly memberships, and not active in them? Cut it off, and see how much money you will save.

Do you get that magazine about fishing every month, that you never read and only throw it away? Your subscription is coming to an end, now that you manage your money the way you want it.

You will be surprised how much your profits have grown when little things like this piles up.

4. Do NOT live paycheck to paycheck

This is the biggest problem. One day, you are sitting in a Jacuzzi, bursting bubbles, and the next day, you don't have any money to buy yourself breakfast.

Spend money wisely and you will have money for everything.

5. Save money gradually, not at the end of the month

You have a great plan. You will spend and spend and spend, and what is left at the end of the month, you are saving it! No, this is not going to work.

It is much better if, on every profit you generate, you take a small portion of it and put it aside. Not that you will have more and more by time, you won't have to worry about it at the end of the month.