Eps 5: How We Improved Our FINANCIAL ADVICE In One Week
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Host
Allison Lowe
Podcast Content
If you want to improve your finances, you need money to work for you and a budget is the plan to make that happen; the money doesn't just end up in your savings account and the debt doesn't pay off on its own. If you want to take control of your money instead of letting it control you, then you should learn to live within a budget. Every penny you earn should go to spending, saving, or paying off debt.
If you want to increase your savings, you can save at least 5-10% of your salary for savings. If you contribute to a savings account and a super account, but still have free money, you may want to invest in other investments. Even if your investment options are limited, small contributions can help you use the money to generate more income.
Even if your contributions are small, this fund can help save you from risky situations where you are forced to borrow money at high interest rates or end up unable to pay bills on time. You should also set aside enough funds to cover your monthly health insurance and car or homeowner premiums as well as credit card payments or other debts. Calculate the amount that works for you, be it $ 100 a month or 5 percent of each paycheck and set up periodic transfers from your checking account to savings.
Meanwhile, the money saved can be deposited in a bank account and accrued interest that can be used for purchases if you have leftover money - you have surplus and you can decide to spend, save or invest it. Once again, if you have money left over every week or every month after you pay for what you really need, you don't need to spend all of it. Saving money may seem too small at times, but consistently saving even small amounts can make a huge difference over time.
If saving money is an area that you've been struggling with in your budget, you can also use auto save and invest apps to save money on a regular basis. Banking and personal finance apps can reduce the stress of monthly money management and some personal finance apps let you manage your budgets, savings, debts and investments in one place to make things easier. Whether it's your bank or your employer, there are several ways to automatically transfer money to your savings each week or month.
Periodic transfers are considered one of the most effective ways to increase your savings. While paying the debt off is good, getting the money back on the check can be more beneficial to pay off the debt so that you have money to pay when your account expires instead of feeling overwhelmed or caught off guard.
By viewing your spending in real time and comparing it to the previous month you will begin to see places to make changes and transfer money in the form of savings. People often equate saving money with reducing a budget.
The first step in paying off debt is to make a list of everything you owe or take about 20 minutes or less to complete the task that saves you money today in less than five minutes. Try it once a day and in a few months you will have a financial change that you can transfer to the bank.
Whether you are buying a home, opening a new credit card or even applying for a job, your credit score is likely the determining factor in your success. But before you can improve anything, you need to have an accurate picture of your finances.
Keep an expense diary and Keep Track of Your expenses can help you identify the top two bad money habits on your list. Once you have mastered these habits, you can create an improvement plan. You need motivation to start adopting more effective money habits. And if you create a visualization board, it can remind you to stay on track with your financial goals.
Improving how you manage your money daily can take time and dedication, but as you develop better money habits, you can create a financial history to be proud of. Fortunately, improving your financial life doesn't have to be time-consuming or overwhelming - pay off debt and saving for the future can seem daunting, and budgeting can seem boring.
This October we presented as part of Financial Planning Month 25 simple tips on managing your money and improving your overall financial health. Rather than ignoring your finances and leaving them to chance, a little numerical calculation can help you assess your current financial situation and determine how to achieve your short and long term financial goals.