Managing finances is a notable struggle for people across all demographics. A recent study proved that 1/5 of workers making more than $100,000 live paycheck to paycheck.
It’s time to learn how to be wise with money.
Proper money management puts you in the driver’s seat concerning your finances. You have complete control of what you spend and what you save. When you know where you stand, attaining certain money goals isn’t far from reach.
You can save for pre-planned and unexpected costs. Also, living life with organized finances reduces stress and helps you remain mentally sound.
Are you trying to figure out how to be wise with money? Read this article for a simple guide to personal finance so you can get ahead.
How to Be Wise With Money? Utilize a Calendar
The intricacies of life and work can busy you and cause you to forget important tasks. If you can’t remember when every bill comes due each month, it’s time to use a calendar.
Financial calendars allow you to log and set reminders. They aren’t used just for remembering to set the alarm or for doctor’s appointments. Use them to get electronic nudges to pay notices on time.
Also, have your calendar prompt you to move money into your savings every pay period.
Know How Much You’re Worth
Knowing your net worth isn’t restricted to the affluent. It’s a matter of understanding what you owe versus what you bring in.
What is your big financial number?
Take the time to weigh your assets against your debts. The difference between the two determines your net worth. That’s the true value of your personal finances. Make sure you recalculate each time you earn a raise or get a new stream of income.
Create a Financial Plan
In order to live a successful, financial life, you have to say and use the B-word often. You need a budget.
Budgets help you maintain your money each month. It doesn’t start and end with your paycheck. It’s about how you plan to live your life. Do you plan to get married, buy a house, and have kids?
Will your kids go to private or public school? Also, if you plan on paying into a 401K or vacationing, you need a budget for that as well.
Get Out of Debt
Debt kills your income and reduces your net worth. Add getting out of debt to your monthly budget.
Start by creating a log or list of every you owe. If you’re not sure, pull a free copy of your credit report. Call your creditors and get the exact amount you owe. Begin making payments each month to pay down debts.
If you need help, consider a debt consolidation company. Search the internet for reputable companies and read their reviews before you sign up.
Be Smart With Your Pennies
Learning how to be wise with money is a serious task, but one you need to learn for financial freedom.
Check out our finance guide for more ins and outs on how to manage your money each month.