10 MONEY MANAGEMENT TIPS
Being able to manage your funds effectively is an important step to build on your financial foundation.
It can be difficult figuring out the best ways to handle money, but here are some tips to help you with learning how to manage your money better in the new year and beyond:
1. Emergency Fund Savings: If you currently do not have an emergency fund savings established, this should be a top priority for you. An emergency fund savings is a dedicated account of at least 3 – 6 months of your monthly expenses. It should be set aside from any other savings account you may have.
An example: Monthly Expenses = $2,000, a 3-month emergency fund = $6,000.
2. Calculate Monthly Expenses: Do you know how much it costs to sustain your current lifestyle? Including paying your bills and other miscellaneous expenses? Take some time to review your finances and calculate your monthly expenses. Figure out where can you cut expenses, which expenses you can negotiate for a lower rate and which expenses you may need to begin including into your budget for yourself!
3. Decrease Expenses: Not all expenses are created equal. You don’t have to account for expenses you don’t care for within your budget. It’s important to evaluate all of the things you are currently paying for and ensure you’re comfortable with the price tag!
4. Tracking Expenses: Creating a system for expense tracking is a critical step in establishing better money management.
5. Budgeting: Your budget is your financial roadmap. Budget for the things you want and ensure you are setting up the correct money systems to meet your financial goals.
6. Setting SMART Goals: Write out your ACTIONABLE and SPECIFIC goals and track your progress at least each quarter.
7. Finance Education: Choose a topic in the finance space that you would like to learn more about and educate yourself on said topic. Do you want to learn more about Budgeting Strategies? Credit? Investing Accounts? – Utilize resources such as books, youtube videos, podcasts and of course, platforms such as Financially Winning.
8. Sinking Funds: Sinking funds can set you up financially! Want to travel more this year? Create a travel sinking fund to ensure you’re on track to taking annual vacations!
Read More: Sinking Funds Blog Post
9. Debt Payoff Plan: Calculate your total debt and create a plan of attack. There are multiple debt payoff strategies to choose from!
10. Investing: Investing is a critical part of a wealth building journey, but don’t skip the steps above. Better money management comes from building a solid financial foundation. By implementing each step and seeking out avenues to learn more, you will eventually let compound interest do the work for you to build wealth!
Better Money Management from 2022 to FOREVER!
