How are your finances going so far? If you think you’re not in your best state in terms of finances, you’re not alone in thinking of yourself as financially illiterate.
A lot of people struggle with financial management. It’s not an easy feat; you earn, spend, and save. Looks easy and simple on paper but it can be a pretty tricky cycle, thrice more if you’re dealing with heavy debt.
Fortunately for you and everyone who struggles in handling finances, we’re here to help you sort out your system and guide you to financial literacy. We’ve got here five tips to help you get started:
Don’t let fear stop you
Money management is tedious and requires a lot of discipline and responsibility. If you’re only starting to earn by and for yourself, you may find it tempting to splurge and hard to save. Get over your anxieties and start putting work in improving your financial habits. Financial knowledge is your weapon against eye-rolling and regretful financial decisions. So start learning now before it’s too late.
Get to know yourself
In order to put your finances in order, you have to get your act together first and know what type of person you are when it comes to handling your finances. Are you an impulsive shopper? A chronic bad decision maker? For instance, instead of paying your debt for the payday loan you got once your paycheck arrives, you immediately spend it on something else. It’s time to know what your priorities are and your tendencies when it comes to money management.
Use financial management tools
One way to practice and improve your financial literacy is with the help of financial management tools. Thanks to the digital age and the continued advancement of technology, there are numerous financial management apps, software, and tools you can find and test to see if it fits your needs. You have tools like Mint (a popular and well-loved finance app) that helps in improving how you manage your personal finances and one that you can download on your smartphone.
Determine your budget
It may sound scary at first, but the key to saving enough and spending is less is having a concrete number of how much your budget is. To help you manage that easier, make a list of your monthly fixed expenses. Then, allot a percentage for your savings, allowance, an emergency fund. Once you get a clear view of where your money goes, you’ll start being more mindful of your spendings and finances in general.
Set a realistic goal
It’s easy to say you want to save $$,$$$ in a year, but actually achieving it is the hard part. We suggest you set realistic goals instead that when accumulated in the end, achieves your ultimate goal. For instance, your goal is to save $200 in three months, you could make it a goal to save $17 weekly. It’s important to set doable goals you know you can work on.
Start your journey to financial literacy now and look forward to a better future!
About the author: Chie has spent time figuring out ways of saving money and stepping away from her go-to retail stores. She then became a writer for QuickCash Australia which offers hassle-free loans services.