Money management is a skill all of its own, and if your parents or guardians weren’t well versed in the ways of financial acumen when you were growing up, the chances are that you had to work out how to look after your money as you went along.

Whether you’re planning to save your money for a downpayment on a house or apartment, or you simply want to see a more impressive amount of cash every time you check your bank balance online, you should continue reading. Here are the top ways to improve your money management skills and build your savings.

  1. Plan for Emergencies

Upon first glance, you may deem it slightly pessimistic to be advised to automatically plan for emergencies and unexpected payments, especially when your mind is focused on saving money, but this will actually help you in the long run.

You always need to be able to access a couple of hundred dollars and have this untouched and always ready to pay for something unexpected, and ideally, as you become better and better at managing your money, this amount will naturally increase over time.

Unexpected expenses include, among a host of others, the following:

  • Veterinary fees for beloved pets
  • Family medical emergencies
  • Car breakdowns and accidents
  • Home repairs
  • Seasonal expenses
  • Increased rental fees
  • Natural disasters

  1. Devise a Customized Plan

Once you know how much money you earn after tax payments and indeed, the amount you’re left with each month once all your mandatory bills and other commitments are paid for in full, you’re then left with the number you need to work with, and this is where a personalized financial plan comes in.

You need to be clear on your priorities when it comes to extra expenses, for example, if you simply can’t do without your morning Starbucks cappuccino every day on the way into the office, this should be your only consumable luxury. From now on, even if there are cakes on offer that you have never tried before, or you’ve missed breakfast and want something to eat, you’re only allowing yourself to buy the coffee and nothing else.

Your plan could take the form of a more informal and casual notebook, outlining everything that you spend your money on and then you need to review it every week to find where you can cut back, or else you could use a more organized and formal Excel spreadsheet.

  1. Try and Consolidate Your Debts

Next, a slightly controversial subject, but certainly one that’s worth looking into, is the matter of debt consolidation, especially if you have lots of smaller debts to multiple different companies and creditors.

The key benefits of consolidating all your separate debts into one affordable, monthly payment to one company include:

  • You’ll have peace of mind that nobody is going to come knocking on your door for money.
  • You can turn accounts which are in arrears into positive ones.
  • You’ll have more money to work with.
  • You’ll only have one bill to pay when it comes to debt management.

Conversely, the reputed cons of consolidating your debts into one include the following:

  • It’s not a be all and end all to sort out your finances on its own.
  • It’s likely that you’ll be paying a higher rate than if you paid off debts separately.
  • If you miss even one payment, you could be in even more trouble.
  • It’s possible that there’ll be upfront costs to pay initially.

  1. Look Forward to the Future

Even if you’ve only just graduated from college or even high school and have absolutely no idea on the direction you’d like your career to go in right now, let alone be thinking about retirement, just thinking about a comprehensive retirement plan will only serve to benefit you.

For older adults, planning for retirement is a savvy way of learning about everything from social security entitlement to ways and means of investing in up-and-coming companies, and so looking forward to the future will only help and never hinder you.

The smarter you are with your money now, the more prosperous your life will be in the future, and you’ll end up thanking your lucky stars that you concentrated on managing your finances effectively early on.