Finance Tips to Help You Manage Money
People often say, “I work all night, I work all day, to pay the bills I have to pay. And still there never seems to be a single penny left for me”.
TIP #1 – Stop thinking that “Debt is a Normal Way of Life”
This type of thinking is a common trap. And it is what keeps the world’s economy going. There is NO reason for you to think that you HAVE TO BE the ” grease that keeps those grinding gears turning “.
If possible, consolidate all your personal debt and credit cards.
If you have several personal loans, medical bills, and/or multiple credit card balances, you should consider consolidating those unsecured debts into ONE or TWO loans.
In addition to simplifying your life to one or two monthly debt payment(s), you can also potentially lower your interest rate and the amount of money you spend each month on loan payments.
Debt consolidation can be done through:
- Transferring debt from high-interest loans and credit cards to a low-interest credit card
- A home equity loan if you have sufficient equity in your home
- Taking out a debt consolidation loan and using the loaned funds to pay off the balances on your unsecured debt
And ALWAYS payoff your biggest ” debt-suckers ” such as vehicles, home loans, school, etc. as QUICKLY AS POSSIBLE .
Have a credit card that is ONLY for emergencies.
TIP #2 – Measure your purchase in terms of hours of labor
One way to better understand the value of your money is to measure it in hours worked instead of just dollars.
When you are giving in to an impulse purchase, consider how many hours you worked to make the money to pay for the item. When you think about the time and hard work it took to earn that cash, it might make you think twice before letting it disappear for something that brings short-lived joy.
Measuring your money in hours will help you create and maintain financial boundaries. If you are self-employed, another way you can accomplish this is by setting up a separate checking account for your business. Deposit your payments into business checking account; then, transfer your “paycheck” into your personal checking account based on the salary you set for yourself.
TIP #3 – Make you money grow
Your money is just like a plant that needs to be nurtured with sun and water.
The money you worked hard for and saved should be invested. And investing does not necessarily have to mean tossing your money into the stock market, although you should realize, however, that taking on some risk also means better potential returns.
If you do not want to deal with losing money in stocks, there are a number of investment vehicles that carry little risk, yet pay a higher rate of interest than standard savings accounts.
These include :
- High-yield savings accounts
- Money market accounts
- Certificates of deposit
- Treasury bills. Government bonds and bond funds are also a relatively safe investment compared with equities.
Also, a credit card that gives “cash-back” is great. Why ?
- Pay-off monthly bills with a “cash-back” credit card.
- The higher bill paid the more “cash-back” you receive.
- Never put more on your credit card than what you actually have in your bank account.
- Pay your credit card immediately IN-FULL with “cash-back” you received
- Make the credit card PAY YOU for using their card.
TIP #4 – Break the expensive habit of eating out
Eating out is always easier than cooking your own meal. It’s also way more expensive.
Eating out is one of the biggest leaks in a lot of people’s budgets. Eating out is hard to stop doing because after a while, where we eat becomes more than a choice; it becomes a BAD habit.
A single person eating fast food twice daily, five days a week, might spend $70. Add one $30 sit down dinner and you have UN-KNOWINGLY spent $100 in a week. That is $400 a month ! That is $5200 a year you could have paid toward your mortgage, rent or a car payment.
Do you see how a little but here, and little bit there adds up ?
Instead, go to the grocery store, and the same $100 could feed you for up two weeks. Plus your personal health and self-worth will grow for the better as well.
TIP #5 – Set Specific Financial Goals”
Use numbers and dates, not just words, to describe what you want to accomplish with your money.
How much debt do you want to pay off—and when?
How much do you want saved, and by what date?
Growing your money is JUST LIKE growing muscles in the gym. It takes planning and discipline. And the BEST part is that once you see the results, you will find it easier and easier to break bad habits by replacing them with some specific financial goals.
Hope this helps.
It did wonders for me, and I find my self being happier and satisfied with the fact that I am NO LONGER the “grease that runs the gears of the grinder”
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