Thinking About Elevating Your Money Smarts?
Mel @ brokeGIRLrich / April 20, 2018
Money management can be tricky, especially if you’re new to it. True, we’d all be financial gurus if it were easy. Yet, with some determination and smart choices, you can revamp your financial situation, whether you’re in debt, living paycheck to paycheck, or just want to boost your savings. All you need to do is devote a bit more time to your finances. They won’t manage themselves, after all. So, what needs to be done?
Firstly, understand that this transformation will take time. There’s no immediate solution for your finances, especially if you’re striving to go from okay to great. The journey, while gradual, will be rewarding and educational. To solidify your financial struggles into success, smart decisions are your keys. So, what’s the game plan to achieve better finances?
1. **Understand Your Situation:** Start by really examining your current financial state. Sure, you might feel you’ve got a handle on your finances, but without a detailed breakdown, it’s hard to tell. So, sit, open your bills, check your accounts, and get a clear picture of what you have, what you owe, and the reality of things.
2. **Research:** If finances seem like a foreign language to you, it’s time to become fluent. While turning into a finance pro overnight isn’t necessary, some knowledge can go a long way. Get familiar with financial accounts, money-saving techniques, and take an active interest in all matters finance.
3. **Handle Your Debts:** If you’re in debt, it’s time to step up. Debt can be unsettling, but nothing will change if you don’t make moves. Figure out what you owe and who to, and reach out to your lenders to see if you can get a better interest rate or freeze your interest while you pay it off. Making a repayment plan and setting deadlines will help you regain control.
4. **Use Credit Cards Wisely:** Be smart about your credit cards. Investigate various options that can help you in the long run. Get familiar with credit card benefits and learn what’s available in the market. Make your cards work for you, not against you.
5. **Track Your Spending:** If you’re spending too freely, tracking your expenses might help. Apps highlighted by The Verge for financial tracking can be good options. Monitoring your spendings can provide a better understanding of your budget.
6. **Adjust Your Expenses:** Constantly tweaking your budget and trimming down your expenses can free up cash for debt repayments or savings.
7. **Shop Smart:** Always shop around before purchasing any financial product. Sticking to your bank or first option might not always be the best move. A little extra search could land you better lending or saving rates.
8. **Try Investing:** No matter how inexperienced you feel right now, consider investing a bit. Even a small investment in stocks or bonds can boost your money over time.
9. **Diversify Your Income:** If you’re only receiving one paycheck per month, consider cultivating multiple income streams. Multiple incomes can increase your overall earnings and provide a safety net if one source dries up.
10. **Spend Mindfully:** Lastly, be conscious about your spending. Sure, you see a balance in your account and feel tempted to spend. However, if your goal is to be smarter with your money, pausing before spending can make a world of difference.
In conclusion, your path to a healthier financial life lies in dedication, smart choices, and being proactive about managing your finances.