Do you lack money management skills? Are you always left wondering where your paycheck disappears to? Do you struggle with saving and keeping track of your income and expenses? If so, you’re in luck as we’re about to shed some light on some personal finance tips to help you master your money.
Spend Less Than You Make
This may sound simple but it’s where most people slip up. Regardless of how much you’re getting paid – whether it’s $1,000 per week or $1,000 per month – you’re never going to be financially stable if you spend more than you earn. Saving doesn’t have to mean huge sacrifices so identify the areas where you could potentially cut corners. Do you pay to get your groceries delivered? Go to the grocery store instead. Are you paying for cable but you don’t have time to watch TV? Think about getting disconnected and put that money aside each month. Can you save on your energy bill by installing more environmentally friendly appliances? These are all questions you need to ask yourself.
Try Some Alternative Ways to Earn Money
To fulfill our previous suggestion, it might help you to find a way to earn more money. The first step we would suggest is to try and speak with your bosses if you are eligible for a pay rise. Another thing you could do is find a second job. It should be something part-time that you could do on weekends or after you’re done with your main job.
Another option is to try and earn money from a hobby of yours. If you knit in your free time, you’re a serious gamer, or always win while playing poker with your buddies, see if you can get some income from those activities. Just be well-prepared first, check does it require some investment, are you really that good, and, for gambling make sure you understand well how everything works when you’re playing for real money, do you know how do online casino bonuses work, what are the taxes when you win in your local casino, etc.
Another thing you could do to increase your income is to try and sell some stuff you don’t use or need. Have a good old yard sale or, even better, see if you have some jewelry laying around that nobody wears. If the latter is made of precious materials, you could get a decent amount of money for it.
Have A Savings Plan
You’ve most likely heard the term pay yourself first. It’s a powerful concept and one that really works. If you pay your bills and keep some money aside for unexpected expenses, chances are you’ll never have a healthy savings account as you’ll never have any funds left over. Instead, choose to set 5-10% of your paycheck aside for your savings before you pay bills and take money for unexpected expenses. Taking this approach will ensure your savings are a priority. Think about other areas where you can also add to your nest egg. Have you thought about refinancing your student loans in order to save money? Is there a way you can pay off your credit card debt quickly to avoid paying high interest rates? These are all factors to consider when building a savings plan.
Take Advantage of Employment Benefits
Take a step back and think about what employment benefits you can be taking advantage of. Talk to your employer about paying into a 401(k) plan and discuss flexible spending accounts and different insurance cover. Learn everything you need to know and decide on the options that can save you the most money by reducing your expenses and taxes.
Get Rid of Credit Card Debt
Many Americans struggle when it comes to credit card debt. So much so that it’s the number one obstacle to becoming financially secure. It’s so easy to swipe a card and click a few buttons when making purchases but it’s important to remember that you’re spending real cash – cash that isn’t yours. And while we always promise to pay the balance off quickly, the reality can be a whole lot different. Start by paying off the cards that have the highest interest rates and work your way down the list if you’ve more than one card.
Budget Effectively
Get control over your finances by creating a plan outlining where your money will go. Make a list of your expenses and balance them with your income. Is there much funds left over for savings or for unplanned expenses? Budgeting is the key to opening your eyes and making you more aware of where your money is coming from and going. There are apps available to help you stay on track so managing your funds has never been easier thanks to technology.
