Effective money management in today’s world is more important than ever before. When deciding to begin your financial planning, or looking to better your current situation, avoiding money mishaps will help solidify a safe, secure, and flourishing future. This guide offers a handful of strategies to help you stay focused and plan for the unknown.
1. Create your Budget
It’s important to start with your budget to ensure you have a solid foundation when planning money management. Keep close tabs on your income and expenses with a spreadsheet or budgeting app. Be sure to put your expenses and spending in the correct categories to stay better organized; This will assist largely in staying on task and under budget. Be sure to set clear goals for your savings, spending, and expenses.
2. Plan for Emergencies
Look, things happen that are out of our control. Saving for those rainy days can help offload significant stress from your situation. A great rule of thumb is to set aside 3-6 months of expenses for those untimely, unexpected, but inevitable emergencies. Be sure to keep this “rainy day fund” easily accessible A great option would be a prepaid debit card, pre-populated with a set amount and untouched until you need it. Use the mobilemoneyinc Mobile App to manage your card and balance.
3. Don’t Shop on Impulse
Ok, I know, I want it too. However, impulse purchases can be detrimental to your savings strategy. It’s vital to avoid those non-essential, on-the-fly purchases. You’ll need to come up with some creative rules to avoid giving in, such as counting to 10 and walking away. I know, I’m sorry.
4. Credit Cards are Not the Answer
As helpful as credit cards can be for random needs, if not handled correctly, they can lead to unmanageable debt. You want to make sure these are paid off monthly to avoid interest being applied, which will dig you a deeper hole. Missed payments and maxed-out cards can have a dramatic impact on your credit score. If this line of credit is necessary, consider a loan with a smaller interest rate and reasonable terms.
5. We All Want to Retire
Plan, even if it seems too far in the future to need to care. The earlier you start saving for retirement, the better off you’ll be; You could even take years off of how long you’ll need to wait before retirement. There are several types of accounts you can set up to help, like a 401(k) or an IRA. Many employers have a 401(k) set up for employees and will match your contribution. This can significantly impact your retirement planning.
6. Gut Check Your Goals
Setting well-rounded short-term goals to reference will help with your long-term goals. A gut check on your current goals will greatly help you see your strategy through to the end. Keep focused on the end goal, whether it be vacation, retirement, or emergencies, and remember why you are doing it.
7. Get Educated
Fundamentally understanding your savings and investments will help you avoid money mishaps. Check out some of our blogs, available for FREE, to help educate yourself for your financial endeavors.
8. If You Don’t Know, Ask a Pro
Questions? It’s always a great idea to seek professional help if you feel overwhelmed. They can help develop personal solutions for your financial needs. Develop a strong strategic plan to begin achieving your financial goals.
Conclusion
Being mindful of your finances will help you with proactive planning. By curating a personal budget, planning for your goals, and setting realistic expectations and timelines, you’ll have financial stability in no time, avoiding untimely money mishaps. Take charge, start early, and stay committed.