If you think managing your cash means stuffing it under a mattress or splurging at stores, you are missing out on making your money work for you. Cash is a liquid asset that too many people are taking for granted. Beyond hoarding bills or frequently going shopping, you can use your cash in more constructive ways.

Keep tabs on your cash flow

You keep track of your checking, saving, and investment accounts to make sure there isn’t any strange activity or a significant loss of funds. The amount of cash that you regularly keep on hand, spend, or save deserves to be monitored too. If you fail to stay on top of how much income you have vs. expenses, you can quickly burn through your cash reserves if an emergency occurs.

Reduce reckless spending

Unfortunately, the only way to double your money is to fold it over, or hope you make strong capital gains over time. If you want more cash to cover your needs and wants, you should make an effort to reduce spending on non-essential goods and services whenever possible. Also, avoid getting into debt or being saddled with fees for your purchases.

Be prepared for emergencies

When an unforeseen event happens, you don’t want to be stuck relying on maxing out a credit card, making an early withdrawal on insurance or retirement accounts, or raiding investments. Try to maintain a minimum amount of cash that is stowed away in safekeeping for an emergency. Home safes or a safe deposit box may help protect your designated emergency cash from being spent.

Capitalize on loose change

Whenever you break a bill and have change left over, or you gradually reduce your spending, you should have more cash leftover. Instead of running out and spending your extra windfall of cash as fast as you can, consider putting your pennies and bills toward investment accounts, CD ladders, or high-yield savings accounts instead.

Golden years up ahead

Preparing for retirement often means paying into an IRA account, and managing a diverse portfolio that includes funds, stocks, and bonds. However, when you need to withdrawal money for daily expenses, you may have to contend with hefty fees, or live on less cash than you planned. Figure out how much cash you will need on hand during your golden years for a more comfortable life.