5 Personal Finance Tips That both Young and Old Can Use Effectively
Blog Summary
Even if you have enough money in the bank and take home a consistent paycheck, you still need to make a conscious and consistent effort to manage your money effectively.
- Create a Budget
- Pay Down Debt
- Build Your Savings
- Minimize Impulse Purchases
- Maximize Employee Benefits
Many people overestimate their financial stability. Even if you have enough money in the bank and take home a consistent paycheck, you still need to make a conscious and consistent effort to manage your money effectively.
If you want more financial freedom and to take complete control of your finances, follow these 5 guidelines.
If you want more financial freedom and to take complete control of your finances, follow these 5 guidelines.
Create a Budget
A true budget is much more than a dollar amount you don't exceed each month. Have you listed and added up your expenses lately? If you haven't, there's a good chance you're spending more than you think. Keep close track of where your money is going so you can adjust accordingly. You should never be unsure of what you can and can't afford
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Pay Down Debt
The interest you pay on debt is money you're literally giving away. If you have a large balance on a credit card, limit your spending on that card until you pay it down. If you're paying off student loans, try to pay more than the minimum so you actually see your total go down and you're not just paying the interest each month.
Build Your Savings
It can be downright painful to take even a small chunk out of your paycheck for savings, but if you can force yourself to do it the first few times, you'll be happy with the results when you start to see your savings account grow. Pick a realistic percentage of each paycheck to deposit into your savings account and hold yourself to the task. If you want your savings to grow faster, look into a savings account with higher interest. The bank may require that you keep a large balance in it at all time, but it's worth it for the interest your money will accrue.
This post first appeared on Growth, Profits, & Wealth Blog By Travis Raml, CPA, please read the originial post: here
