Be finance-savvy in three easy steps. Budget your finances and go for cheaper options. Allot a portion of your paycheck for your savings, and learn to invest your money for better financial security. Earning money might be no easy task, but saving money is harder. For most people, budgeting is a major headache and managing your finances-limited or otherwise it is a major challenge. These days, one needs to be not just book-smart, but street-smart when it comes to handling your finances.
Steps To Financial Freedom
Budget
If your spending habit is more than what you get every payday, then your finances are in dire condition. The first step to a fatter checkbook and financial security is to learn to curb your spending habits and budget your finances. Plan what to buy and when to buy things.
Every month, make a detailed list of your expenses–from the bills to pay for your simple luxuries. And then check which items you need to buy (or pay off like your bills) and those which you can forego or lessen, like that espresso from the coffee shop or a restaurant dinner. You will see how much you can save, or in another case, how much you’ve been wasting. Compare your spending habit with the actual amount you earn each month.
The key is to get a good, long look at the state of your finances and see how much you’ve been spending, how much you can save, and to live within your means.
Save
The next step to financial security is saving. Once you’ve learned to live within your means, choose cheaper options and curb your spending habits, the next thing to do is to “pay-off” your savings account with the money you were able to save after budgeting your money. The key is to allocate every month a certain portion of your paycheck to your savings account.
Consider it a loan you are required to pay every month or every payday. It is true that we have bills to pay and daily expenditures to mind, but start allotting at least 20-30% of your paycheck for your savings. Most financial advisers would even advise putting away your savings share first before you even pay your bills or start that shopping spree.
Managing your finances is not just about managing your spending habits and budgeting, but learning to save as well.
Invest
No businessman earns without investing. Having stable savings is good. But finances that grow and expand and earn its value is better. Your finances, that is, your savings account may be earning interest in the bank. But investing it in a business venture, for example, will earn it greater interest. In a few months’ time, your thousand bucks may have already doubled its value.
Of course, investing your money is not without risks. You have to 
understand that when it comes to finances and the financial world, everything is pretty much a gamble. So for starters, learn the kind of investment you’d like to put your money into.
The idea is that while it’s good to have that money stored in the bank, the better way to go is to have your money earning interest and increasing its value.
To be financially-savvy, think of three things: Budget, Save, and Invest. Soon, you’ll find that earning money and handling your finances is easy as one-two-three.