Managing your finances can be a daunting task, but it doesn’t have to be. No matter where you are in your life journey, learning to manage money and making it work for you and your future is an important skill. Here are some practical tips to help get you financially fit.
Stretch Your Dollars Wisely
Set a realistic budget and look for ways to reduce spending. Pack a lunch and make a cup of coffee at home instead of stopping for a morning latte. A budget helps you know what you have to spend on necessities and enjoyment, and how much to save each time you get paid. But setting a budget is only the beginning; sticking to it is another matter. Tracking your spending down to the dollars and cents is easier than ever with free-to-use budgeting apps you can find in your app store. You can even categorize your transactions (e.g., food, household, entertainment, etc.) so you can see at-a-glance how your actual spending habits break down.
Make Saving A Priority
If you have trouble reducing your spending or sticking to your budget, try setting a minimum savings goal. A realistic goal is easier to maintain and helps you accumulate savings a lot faster than you’d expect. Try saving just $5 each week and by the end of the year you will have saved $270! If you increase your savings by just one dollar, it adds up to $324. Put aside small amounts throughout the year and watch your money grow. And don’t just stash cash under your mattress: Putting your money in a high-yield savings account means your money can earn even more, without any effort on your part.
Register For Automatic Transfer
Set up your bank account to move money from your paycheck into a savings account before you even know it’s gone. By setting up an automatic transfer, your cash gets saved and you aren’t tempted to spend it. Also try lowering your monthly expenses by 10% and move that cash into savings or investments. Look for savings by paying off your credit card immediately to avoid interest fees or shopping less and move that 10% from spending to long-term savings. If you want an easy way to set it and forget it, some banks even offer debit cards that round up every purchase to the nearest dollar and transfer the change into a savings account for you. It may not sound like a lot, but even your digital “spare change” can go a long way.
Start Thinking About Retirement … Now
Investing can be intimidating. Look for a certified financial planner who can guide you to invest wisely. Learn to maximize your 401k plan with your employer, open an Individual Retirement Account (IRA) or even put money in a Certificate of Deposit account to earn interest. Credit Unions can help you learn more about IRAs, savings accounts, Certificates of Deposits and other saving products that ensure your budget and retirement goals stay aligned.
Learn how you can save money on your insurance premiums.
Rich says,
Excellent suggestions. I can say i do or have done it all.
Katrina Meeks says,
I have been with Geico for over 10 years and my children are now following in my footsteps. I get good fast service and that is a plus. These tips are helpful as I have returned to school and I too need to reduce credit card debt. Thanks, Geico and Ericka for sharing good information. The gas tips will really help this winter and I won’t leave my car running for so long.
Fesehatsion T. Tecle says,
Thanks for sharing all the doable, easy and practical ways to make life easy but successful with the most minimum possible economic and social stress
aimee nkingolo says,
Thanks and very helpful informtions.
Ericka says,
I have totally messed up this year. I had a previous injury from my job back in 2001, I re injured it back in March 2015, plus got into a car accident in June 2015 (not my year). The purpose of telling you this is, while I was out home on disability during that time. I finally admit that I got into a mental rut as well as cabin fever due to my injury. I maxed out both credit cards, shopping on QVC & HSN. I always thought I wouldn’t be that person. I would frown up at others who would spend or do frivolous things with their money. Now I have to eat my own words. You never know when you will find yourself in certain situations. Now, I just shut up!!! I have 5 years left before retirement, but I have car notes, household bills, credit cards, bank loans, school loans…so I’m digging myself out from under a pile that should have never occurred. So, I say to anyone who may read this, don’t allow pride to get in your way like I did, by not asking for help or having a close love one to keep you in check on impulsive spending. My situation with me as well is helping out family, until the day you need help and you turn around and find yourself standing by yourself!!!!!!!! NO HELP AT ALL!!!!!!!! However, I will move forward & take it one day at a time. I will get myself from under this dark cloud. I made my bed hard, so I just have to lye in it for a while.
Falena Johnson says,
I too have a life altering injury I lived with from 87 until 2011 when finally inadequate healthcare had let this nearly kill me I had immediate surgery twice in 3 months I found myself disabled permanately disabled I worked sent myself to school paying cash in the 80s I found myself after 30 beautiful years of marriage unable to be super wife mom and half the income no longer that woman divorced my disability check says I am worth 700 a month yep 33 years working my divorce granted me a healthy alimony insurance the home he was to pay off only owing 5 years he never followed thru on the house I lost a beautiful home I had paid half of for 23 years next he stopped insurance and alimony I was 55 homeless broke getting 700 a month of what I paid in lol and never had gotten assistance I now get 53 dollars in foodstamps yep 53 dollars there’s no funding for housing assistance to aid me immediately instead I’ve been on every list there is for over 2 years sleeping wherever I can stay for several months at a time my daughter’s husband doesn’t believe in parents living with adult children lol so I understand your situation 100% he stripped us of every savings etc I lost everything including the clothes shoes that I had managed to pack in my car 2017 rolls around i finally got medicaid finding out immediately I was in big trouble with my neck 3 major surgeries in 3 days to keep my spine from compressing and destroying my spinal cord 7 inches destroyed spent 2 months in the hospital no phone call no vistI tors no magazines nothing pt tech felt so badly for me she brought her Sunday school class 6-10 yr old’s to see me after church a few times with handmade cards and origami stuff they turned bible verses into songs it was the best visits I have ever had I too am standing alone trying to learn to use a knife tie my shoes clasp my bra I am now also mentally unstable and lost my momma my everything Sept 28th 2017 she had lived with us 14 years prior to all of this I sincerely hope you reach your goals that you succeed in your financial planning and executing it to take care of you later on have faith in yourself you’re worthy and valuable your most valuable asset is yourself God’s grace be with you and your plans for your successful future
Stephie Smith says,
I used to plan my meals ahead of time in an effort to save money, but studying and school has worn me out. Because of this, I started eating out more and taking less time to prepare meals. I’ll have to make it more of a priority like you said. Thanks for sharing the financial advice.