4 Low-tech ways that can help you in effective money management

January 15th 2013

It is not always necessary to use the high technological applications to manage your finances efficiently. You can keep a track on your income and expenditures accurately without depending on the financial applications that are coming out in the market each and every day. There are lots of low-tech ways to manage your money smartly. Glance through the article to get acquainted with the 4 low-tech ways to handle your finances competently.

Money management - 4 Low-tech ways to do it

Here are the 4 low-tech ways to manage your finances in an effective way:

1. Take a pencil and notebook: Most financial experts recommend consumers to keep a track on their income and expenses every month. Several tech-savvy consumers prefer to use various financial applications or tools to track their finances. However, if you are not tech-savvy person, then you can do this in a frugal way. All you need to do is write down your income and expenses in a notebook. This can help you calculate the actual amount you are actually spending. You can know whether you are spending much more than what you should do. Once you have tracked your expenditures, you can use your paycheck intelligently. You can spend a part of your paycheck for payment of the necessary bills and the remaining part for saving purposes.

2. Keep the bills securely: Do you often forget about the purchases you have made last week or month? If yes, then a low-tech solution to this particular problem will be to retain all the bills in your wallet. After returning home, keep all the bills in a folder. However, only keeping them in a folder will not help you. You have to go through them on a regular basis. This will help you realize the number of dollars you are spending on various purchases.

3. Reduce your expenses: One of the low-tech ways to manage finances is envelop system. You can make envelops for different categories such as apparels, rations, transport, etc. Keep a certain amount of cash in each envelop as per your budget. When an envelop becomes empty, you can know that you can't spend any more on that particular category.

4. Shop smartly: Another low-tech way to manage your financial life proficiently will be to list the costs of the items you purchase every week. It may be the case that you purchase all your groceries from your nearest shop. But as you do so, you don't have the idea about the prices that the other shops in the market are charging on the same products. So, shop around and find out the prices charged by the other departmental stores in the market. If any store offer discounts or charge low price on the products, then you can very well make your purchases from that shop.

Last but not the least, you should check whether you tend to spend more money when you have cash in your wallet. If you have the habit of indulging into useless expenses when you have cash in your wallet, then carrying a debit card for emergency expenses will be a wise idea.

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