Attaining and maintaining a healthy financial life is within reach for anyone who so desires it. No matter what your financial situation may be, following these 7 useful principles will help you forge ahead towards achieving your financial goals.
1. KNOW YOUR MONEY
Always know how much you have coming in and how much is going out. Pay attention to not just the amount on your checks, but your check stubs as well. Make a list of all your debt, household bills (such as utilities), and incidentals such as coffee or vending machine snacks. This is the basis of great financial management. When you start losing track, that’s when you start to get in trouble. Either you can overestimate the amount of money that you really have available and end up overdrawing your accounts, you end up constantly trying to figure out what happened to your money or both.
2. GET ORGANIZED
Establish a filing system to store such items as your bills, receipts and any other financial records. If possible, go paperless. Many companies nowadays offer the option of receiving your bills online. This is a convenient way of cutting down on the amount of paper that you’re having to keep track of, saves space, and prevent lost bills. When you go paperless, usually months of billing statements are stored on the company’s website and you have access to your statements any time of day with the convenience of not having to track down the paper copy. Close bank and credit card accounts that are no longer in use. One last note, purchase a shredder. Do not throw away billing statements as they could sometimes contain personal information. Shred old receipts and statements when they are no longer needed.
3. CONTROL YOUR SPENDING
Create a spending plan. Decide how each of your dollars will be spent and stick to it. Make sure to include in your spending plan money that’s just for fun, even if it’s only a few dollars for a Redbox night. Once you’re sure that you have enough money each month to cover all of your bills and expenses automate all the bills, savings and expenses that you can. If everything cannot be automated, then at least automate those expenses that you pay consistently from month to month. You’re guaranteed to have control of your money and even have a little just for enjoying life.
4. KEEP YOUR MONEY
Limit your debt, live below your means and do not acquire new debt. The more debt that you acquire, especially credit cards and loans, the more money you will have to spend. Credit cards and loans acquire interests. This interest is compounded, therefore the more debt you have and the longer you have it, the more money you must pay back to that lender. Whereas, getting rid of debt will free that money up for you to keep for the things that you really love. Now, would you rather pay creditors 12% extra per year or keep that money for yourself?
5. PAY YOUR DUES
Start paying down any debts that you owe. Make it a goal to get out of debt and free up your money to start using for yourself, your family, and your future.
6. EDUCATE YOURSELF AND STAY INFORMED
The internet, library, and bookstores have tons of information about finances by well-known and experienced advisors. Don’t forget about Centsable Dollar, here to help you learn what you want to know about money. Take the time to begin understanding how money works and look for information and opportunities to increase your finances. The more you know about money, the more you will feel encouraged and empowered to stick to your financial goals.
7. IDENTIFY YOUR FINANCIAL GOALS
Determine what your financial goals are. You should come up with short term and long-term goals. This will set you on your way to great financial management. Contact me today to do a free financial analysis. I will work with you one-on-one to establish your financial goals and help get you on your way to managing your finances.
