Women's Life Link Be Well, Be Happy, Be YOU!
Being good with money and what’s known as ‘financially healthy’ is crucial for security and longevity. The amount of money you earn or what level of debt you might have are only starting points in understanding smart money habits and where to begin.
The issue is that many people don’t know how to be financially healthy and embrace smart money habits. This type of ignorance can lead to problems even if their intentions are good. That’s why it’s a good idea to develop a plan sooner rather than later. That way you can use your finances to gain the security and wealth that you want for yourself and family. It’s never too late to start making better decisions. Here are several smart money habits you can start today.
Budgeting
One of the first steps to financial health is creating a budget. Keep in mind that your first one isn’t likely to serve you a lifetime. It will change as you, your family, and your stuation changes. As you grow your budget will reflect experience and gained knowledge.
Having a well-planned budget is the only real way to track your income, expenditures, and how you meet your savings goal.
Start by listing all the things you have to pay each month – your fixed expenses that are not flexible or negotiable – which could include mortgage/rent, utilities, food, medical, . Then add the expenses that you see as necessary but are somewhat flexible. this might include things like clothing and personal care. The things that aren’t necessary are separated. Decide with your family what amount is good for entertainment, vacations, or other items that you don’t need. This category can trip up even the savviest budgeter, so be strong and aware how money slips away. However, categorizing your spending helps you see clearly where funds go and how you can make the adjustments you need to.
Have An Emergency Fund
If there’s anything you can rely on in life, it’s the fact that it’s always unpredictable. Just because you’ve got plans, doesn’t mean you’ll always be able to stick to them. That idea is exactly why it’s so important to have an emergency for unexpected expenses. If you’ve got money set aside for emergencies, you’ll be less stressed and more in control.
Of course, building that fund takes time. The good news is there are still ways to pay for emergencies if you need to, such as online payday loans. These need to be used sensibly and carefully. Be sure to only borrow what you need and have a good budget directing money to pa it back quickly.
Pay Down/Off Debt
Having debt is part of most people’s lives, so don’t see it as a weird way to live. However, a problem arises when it grows beyong what you can pay. This looks different for different people. Perhaps paying the minimum due each month had you in a trap of endless interest and climbing debt. Know that there are ways to tackly this problem if you focus on the solution.
The best thing to do is to pay more than the minimum whenever you can. Focus on the debts with the highest interest first as they’re the ones costing you the most money, and pay them off more quickly. Then move to the next and the next until you’re done. You’ll have more money each month to put into savings and you’ll feel safer and accomplished.
