If being good with money was all about getting a higher-paying job or receiving a windfall from a relative, then most of us would be millionaires.  You don't even need to be a math whiz to manage your finances, basic addition and subtraction are all you need.

For most people, money management is all it takes to reduce spending, save for the future, and achieve their financial goals. 

Life is much better when you have good financial skills. In the US, only 30% of the population has a long-term financial plan. If you're trying to get your finances in order and want to build a solid financial foundation for the future, then you should read this article. I'll teach you how to manage your money and how to save for retirement.

Determine Your Short-term Goals

Planning significantly increases the chances of meeting your goals, but before you start planning, you need to determine the goals that you're working towards. It is crucial to start by looking at the short-term financial goals that you want to achieve in a couple of months or three years to come. 

Short-term financial goals may be singular, such as buying a house or starting a business, and once you reach them, you're done. They can also be incremental steps that you make towards much larger financial goals, such as funding retirement, paying off your mortgage, or paying for your child's college tuition fee. Setting and reaching these short-term goals provides a confidence boost and the knowledge you will need to set goals that will take longer.

Have a Budget and Stick to It

Many people fail to budget as they fear the boring process of listing expenses, calculating, and making sure that everything adds up. Only 58% of Americans budget to stay on track with their spending. However, to avoid financial problems, you have no excuse for not budgeting. If all it takes to create a budget is a few hours every month, then why not?

Writing down a budget and allocating your finances to various expenses can be a relatively easy process if you're serious about it. Sticking to the budget, however, is the challenge. Always remember to refer to your budget during the month to inform your financial decisions. The reward for sticking to your budget is always having cash for the remaining expenses. Lastly, having a budget makes it easy for you to eliminate small, recurring, and unnecessary expenses. 

Start an Investment Strategy

Once you've mastered budgeting, it's time to start investing. Even if your ability to invest is limited, small contributions to an investment account can help you to use your extra earned money to get more income. Consider opening a retirement or any other investment account.

An investment account provides you with better long-term returns than usual savings. Furthermore, if you're approaching or already in retirement, there's a range of investments, such as bonds and property, that can provide you with a regular income for years to come. 

Save for Big Purchases

Sometimes loans can be good for major purchases like a car or house. However, for other big purchases, cash offers the cheapest ans safest method to pay for them. Rather than sacrificing other essentials and putting a big purchase on the credit card, it's better to put it off. 

Postponing major purchases gives you time to evaluate whether it's really necessary, compare prices, and save for it. This will also help you avoid the interests that come with debts or loans. 

The path to financial freedom starts with proper financial management by changing your habits. Some of the changes may be harder to implement, but they all lead to better financial skills that will serve you for years.