There is a certain sweet spot that everyone strives for financially. Whether it be to get out of credit card debt or reverse bad financial decisions, there are ways to fix your finances and be the master of your money. It won’t happen overnight and sometimes it does take a little help from those around you or even some advice from a professional. But have no fear! If you’re willing to put in the time and effort, you can soon be on top of those pesky finances and be on your way to being the master of your money. Here are three tips.
Recognize your bad habits (and stop it)
Are you notorious for getting speeding or parking tickets? This is the biggest waste of your time and money and it’s totally avoidable. Check yourself before you make impulsive decisions that could wreak havoc on your wallet.
Do you find yourself over drafting and having to pay those insane overdraft fees? Again, this can cost you more than you know. A thirty dollar or more overdraft fee is unnecessary and can pile up very quickly. Start using cash when you go out and if you don’t want to carry cash, keep track of your balance regularly to avoid overspending.
Build a Financial Nest
What if you lost your job tomorrow? Would you be able to live your current lifestyle until you found another? If the answer is no, you need to start saving. You may also want to adjust how you spend on a regular basis. A good rule of thumb is to have six months worth of expenses in an emergency fund. This way, if something unexpected happens, it won’t cause a financial nightmare. Start by saving ten percent of your gross income and as you adjust your spending habits, you can save more. The trick is to keep saving until you have that six months worth of expenses and then don’t touch that money until an actual emergency happens.
Change up your Habits
Saving is the number one rule to mastering your personal finances. That simply isn’t possible if you’re currently spending as much as you’re earning. If you want to make a change, start small so you don’t get overwhelmed or feel deprived. Switch out your Thursday happy hour for an inexpensive bottle of wine and game night. Instead of going out to eat every Saturday night, scour Pinterest for a fun recipe you can make with your friends or family. There are sneaky ways to save here and there and believe it or not, small lifestyle choices add up.
We want to see you meet your financial goals! For more tips, check out our other blog posts!