Talking about finances can be overwhelming – stating your goals, dealing with debts, organizing your budgeting system, and the works. However, it’s one of the important “talks” we need to raise with ourselves.
Regardless of where you are right now in terms of financial status, there’s no excuse not to improve it to help you reach your financial goals. If you think setting up a retirement fund if you just got an entry-level salary is not a priority right now, think again. Consistency and discipline are the keys to good financial management.
Spend less, save more, pay back your debts, regularly review your credit score and more. Here are 5 small quick you can do to improve your finances today. Small steps paint a bigger picture, in the long run, start now.
Start tracking your finances
Bought a pair of new sneakers? Note it down. Watched a movie? List it. Repaid a debt to a friend? Note. It. Down. Tracking your expenses for better financial management is just as important as counting your calories for weight loss/gain.
Keeping a close eye on how much goes in and out, where it goes, how much you’ve saved and spent, and the works should give you an idea on whether or not you’re handling your finances wisely. If you’re not, tracking it can make you realize that and help you change your bad habit.
Automate your payments
Missing your payments mean costing you more than it should be had you been more attentive to the due dates and allocating budget. If you’re forgetful and often have little time to pay the bills yourself, start automating them to save you time, effort, and money. When you start automating your payments, you’ll never have to spend a cent on late fees.
Set up an emergency fund
This is a non-negotiable when you start working and shape your savings. Before you splurge on the newest flagship phone or travel overseas, make sure that you have stashed away enough savings that should cover for all your living expenses at least for three months. If you suddenly got laid off, had an accident, car issues, and other calamities in life, you have some money to save your rainy days.
Increase your debt payments
Whenever you have some extra money at hand, instead of using it to buy unnecessary things, use it to pay back any debts and loans you have (e.g. student loans, mortgage, payday loans, car payments, etc.). This should help repay what you owe sooner and cut back on interest fees.
Cut back on your daily expenses
Your daily morning run to a coffee place and work lunch out can be costly especially if there are other alternatives you can opt to instead such as making your own coffee at home or from your workplace pantry and cooking your own lunch. These expenses can be cut down to save you more and allocate a part of that to more important things such as utility bills and debt repayments.
Be practical with your finances, however, don’t forget to reward yourself as well especially on occasions you deserve it most.
What small things that you started doing to improve your finances? Share your tips and advice with us. Leave your thoughts down below!