With the cost of living constantly on the rise and the price of basic items seeming to soar overnight, keeping on top of your money can feel like an impossible task. Not all hope is lost, however, as there are countless tips and tools available that can make money management a stress-free task with liberating rewards.

Taking steps to better manage your money really can change your life. In this article, we’ll take a look at how transforming your money management skills and changing how you protect your finances will greatly benefit your present and future self.

Take Steps to Secure Your Finances

Perhaps the most important aspect of effectively managing your money is making sure your financial security is as tight as it can be. In the digital age, our financial information is at risk from countless threats, scams, and data leaks. Staying vigilant about your transactions, and knowing how to keep your money safe is the first step to effective money management.

Look into cryptocurrency

Cryptocurrency is taking the world by storm and, in Trump's words, the US is set to become the “crypto capital of the planet.” Whether the unique world of crypto appeals to you or not, it's a good idea to consider investing in digital currencies for the extra security benefits they bring to the table.

Storing and making transactions with cryptocurrencies is one of the most secure ways to manage your money. This is because cryptocurrency uses blockchain technology, meaning all transactions are decentralized and cannot be traced to an individual. Additionally, the only way to access your own currencies on the blockchain is through a set of unique ‘keys’ only accessible to the owner of that currency.

However, you shouldn’t only invest in Bitcoin and other well-known cryptocurrencies. It’s important to diversify your portfolio as much as possible. According to expert Ines S. Tavares, the top crypto to buy in 2025 include Bitcoin, Solana, XRP, Pepe, Dogecoin, Notcoin, and BNB.

Understanding how to invest smartly in crypto can not only protect your finances but also see you making a profit. This is due to cryptocurrencies' tendency to rise in value over time. For example, when it was first created in 2009 Bitcoin had the value of $0. For the first few months, it hovered around $0.10. Now, however, the value of Bitcoin is around $78,000.

Create A Budget (and stick to it!)

It seems simple, but so many people aren’t able to get it right. Recent research suggests that although three-quarters of Americans state they have a monthly budget, over 80% also say that they regularly overspend. Having a budget, and sticking to it is the most effective way to keep on top of your money, and build up some savings besides. But how does a budget work and what tools are available to help you build one?

Creating Your Budget

When creating a budget, the first thing you need to do is make a note of your monthly income. Although this is simpler for those who work contracted hours and are paid the same amount every month, freelancers and the self-employed will benefit from utilizing a bit of guesswork and coming up with an average.

Once you have your income, you then need to make a note of everything that is going to come out of your account that month. This includes everything from bills to subscription fees. We suggest you go through your bank transactions for the previous month so you don’t miss anything and aren’t surprised. One great thing about this is that you may notice certain subscriptions you didn't realize you were paying, now would be the time to cancel those forgotten gym membership subscriptions.

Next comes the tricky part, looking at your transactions and separating your wants from your needs. Needs are things that you cannot go without, paying the mortgage and bills, car insurance, and grocery shopping for example. There’s not a lot you can do about the ones that have a fixed price, however, things like the weekly food shop can often be reduced with some smarter shopping.

And then there's cutting down on the wants. The idea here isn’t to stop buying and doing things you love but to make wiser and more conscious decisions about what you purchase. Set yourself a weekly budget for ‘wants’ and stick to it. This will not only save you money but also reduce your risk of making ‘impulse purchases’ of things that you don’t need, and more importantly, on reflection don’t really want.

What’s left over can go into savings, bringing you more money confidence than ever before. One way of looking at this plan comes in the form of the 50/30/20 budgeting tip. Put 50% of your income towards the essentials, 30% can go to your wants, and the final 20% can contribute to building your savings back up.

Budgeting Tips

There are many different apps and software that can help you make and stick to your budget, as well as streamline the process of tracking your spending.

Firstly, there are various apps such as PocketGuard and Everydollar that use a system called zero-based budgeting. This kind of budgeting makes you account for every dollar you earn. Once you're paid, these apps will organize your earnings into various budgets for different aspects of your life, meaning you never have to worry about where your money is going again.

Additionally, finance management tools such as Rocket Money cleverly track your subscriptions and spending and alert you to anything you may have forgotten you were paying for. This tool enables you to cancel recurring charges within the app, making managing your spending easier than ever before.

Frequently Asked Questions:

Is Crypto safe?

Yes, cryptocurrency uses advanced blockchain technology to ensure your funds are protected.

What is the simplest budgeting advice?

The easiest way to budget is to follow the 50/30/20 rule. 50% of your income for essentials, 30% for wants and 20% for savings.

How can budgeting tools help me?

Budgeting tools can help take the stress from creating and sticking to a budget. Many of these tools can analyze your spending and create spending plans for you.

Conclusion

Managing your money need not be a cause for stress. Dedicating a little time each day to protecting your money, understanding your finances, and creating effective budgets is a great way to keep on top of your spending.

Nobody likes feeling like they're running out of money, and finances are one of the largest causes of stress in the US. Therefore, looking after your money can provide valuable peace of mind, enabling you to buy and save for the things you really love.