Everyone desires to live a comfortable life. One of the ways this can be achieved is by mastering the art of making and managing money. The 10 steps below will help you to get smart about money.
1. Get organised
This requires managing not only your financial documents, but also your time. Try to dedicate time each week to thinking, talking, and learning about money management.
2. Know where your money goes
Gaining control of your financial situation and using money to help you reach your goals is possible, but first you must recognize where your money goes.
3. Shop smarter
Making smarter spending decisions is another way to “find” money without actually making more. Make a shopping list, and stick to it. Avoid “impulse” purchases.
4. Look at your debt
As you continue your journey toward financial well-being, consider the amount of money you currently owe. The sooner you identify exactly how much debt you have, the sooner you can make a plan to pay it off.
5. Reduce your debt
After assessing how much money you owe, you may learn that you are carrying too much consumer debt. Don’t let this realization overwhelm and paralyze you. By combining financial planning with debt management techniques you can reduce your debt.
6. Build a strong credit report
Your credit report is a record of how you have paid your debts in the past. It shows the current amount of debt you have, and how much debt you have repaid.
7. Save for your future
Saving money is not easy, but it is essential to achieving financial well-being and securing your future. One of the best and easiest ways to save money and start a strong retirement income planning programme is to pay yourself first. Every time you receive a paycheck, save a certain percentage of your income before spending money on anything else.
8. Set financial goals
Perhaps you would like to take a vacation next summer. Or, maybe you hope to go back to school in the next five years. Whatever your goals might be, you have a better chance of achieving them if you write them down. As you list your goals, divide them into three categories: short term, medium term, and long term. Make sure you prioritize your goals.
9. Create a spending plan
Putting your financial goals in writing can make them seem more concrete and achievable. However, it is easy to allow everyday purchases and obligations to get in the way of saving for the future. One of the best ways to make sure your daily spending habits do not overwhelm your life goals is to create a spending plan.
10. Invest money to reach your goals
Once you have identified your financial goals and established a spending plan, you know what you are saving for and how much you will need to get there.
( Culled from www.stanbicibtcpension.com )
