MoneyMagpie

Apr 25

Effective bankroll management is the key to financial independence

Ask most people what they want from life and various answers are likely. A happy and fulfilling relationship, a good career and a family are three of the most common. But above all these and, in many ways, essential for any of them is financial independence. Many believe that this state may be harder to achieve than ever before with the rising cost of owning your own home being one of the main stumbling blocks.

So there’s no denying that the road to achieving true financial independence can be long and hard as well as involving many sacrifices along the way. However millions each year prove that it’s not an impossible dream – it just takes some organisation and discipline to get there eventually.

Now this might sound surprising but the principle of bankroll management as used by casino players is a good way to impose the essential discipline on your finances if you want to build that solid foundation.

Knowing how to manage your bankroll is a budgeting technique that makes sure that you are always aware of the amount of money you have, the ways that you are spending it and how you predict it will be spent, or saved, in the future. In both the casino and the “real life” environment this will help to ensure that financial security ensues.

With so many financial demands being made of us it can seem like a very complex business to keep on top of income and expenditure, savings and commitments. But, like almost everything else in life, there are a number of apps to help.

One of the best-known is Intuit Mint. It’s available for use on iPhones and Android devices and is one of the easiest ways of keeping track of your finances. At a glance it can give you information on what you’re earning and what you’re spending, balances on your credit cards and how your savings are looking.

Your credit score is also an ever-more important part of financial planning these days affecting everything from the loan rates you’re offered to the likelihood of getting a mortgage and Mint can tell you what yours is and even gives tips on how to improve it.

For people who want to keep things as simple as possible then Level Money is another excellent option. Once you’ve recorded all your income and outgoings it can tell you exactly how much you can spend per month, per week and even per day. It also allows you to see how much of your budget goes on specific elements of your spending.

In the case of individuals who want a clear idea of where their finances are heading in the future then Budget Boss is a great choice. Based on current spending and income it offers predictions about where you’ll be up to a year into the future, perfect for planning ahead on the road to financial independence.

By using these apps, as well as keeping close tabs on money coming in and money going out, it’s certainly going to help achieve your financial goals. And remember that it’s also important to have some fun – and by keeping control of your bankroll maybe you could even stretch to treating yourself along the way.

 

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