If only we learned more about money management in school, and less about the battles of wars gone by. These days, many people feel as though they’re not adequately prepared to look after their finances when they branch out on their own. That’s why we have so many individuals in the US and around the world suffering from debt. The good news is that if you can commit to strengthening your education, you can improve your financial life in no time. Sometimes, all it takes is a few simple tips to transform the way that you think about money for instance. [adrotate group=”4″]
Create a Finance Schedule
If you often forget to make payments on your quarterly taxes or deal with your budget, then you might want to think about marking essential days on your calendar. It’s easy to get about important expenses these days when we all have so many different things to remember. If creating your own financial calendar doesn’t work, then you could always set up automatic payments instead. If your cash comes out of your bank account when it’s supposed to each month, you’ll have less to worry about.
Compare your Loans
Most of us will take out a loan at some point during our lives, but that doesn’t mean that we have to commit to more debt than necessary. Taking the time to compare your loan options will give you more room to reduce the amount you spend on things like interest and fees. Remember, if you have a number of loans that you need to deal with at the same time, you can also consider the option of consolidating your debts into a loan with a lower interest rate too. [adrotate group=”4″]
Track your Net Worth
Obviously, there’s a lot more to a person’s personal value than how much money they have. However, it pays to know your financial situation. Your net worth is the difference between your assets and your debt, and it gives you a good idea of where you stand financially. Keeping an eye on your net worth also helps you to see whether you’re making the right progress towards your goals.
Consider Working Exclusively with Cash
One of the biggest problems that most people have with money is that they can easily give in to temptation. In today’s digital world, where you can buy anything just by clicking on a button online or flashing a piece of plastic, it’s easy to lose track of how much money you’re actually using each day. Switching to a cash diet changes the way that you think about money by forcing you to count every penny. What’s more, if you only take a certain amount of cash with you whenever you go out, you won’t be able to spend more than you mean to.
Set a Budget for Lifestyle Spending
You need a budget for things like food, bills, and essential expenses. However, it’s also worth setting some money aside for little luxuries too. If you try to cut all the fun and freedom out of your spending, then there’s a good chance you’ll drive yourself crazy with too many rules. Instead, think about setting about 20% of your cash aside each month that you can splurge on whatever you like. Then you can put another 30% aside to savings and an emergency account.
Set Specific Financial Goals
Targets and goals help to keep us motivated when the going gets tough. That’s true in life, and in finance too. Rather than just telling yourself that you want to be debt-free, or that you want to be a millionaire one day, come up with specific goals that you can realistically accomplish. For instance, could you break down some of your biggest debts by committing to paying more of them off each month?
Get a Money Buddy
Finally, you’d be surprised how much it helps to have someone to share your pains and stresses with when you’re trying to change your financial habits. Having a buddy who you can hold yourself accountable to is a great way to boost your savings potential. This can be anyone from your partner, to your best friend, or even a family member.
Whatever you do, don’t choose someone to be your buddy if you’re concerned that they’re going to be too judgmental about your spending habits. You don’t want someone who’s going to make you feel terrible whenever you make a mistake. [adrotate group=”2″]
