When it comes to your finances, are you where you want to be at this stage of life? Could your finances use a good fine tooth comb and a little bit of an overhaul?
Managing personal finances is key to being able to manage other aspects of your life. Achieving personal finance goals doesn’t happen overnight–it takes time, commitment, and patience in sticking to a plan to see consistent results. If you are someone that has aspirations of one day owning your own business, it’s time to whip your personal life into shape so those good habits can spill over into the development of your future empire. Here are 5 great ways to improve how you manage your finances:
1. Automate Your Savings
When you live paycheck to paycheck, it can seem nearly impossible to think about putting money away for your future. When you keep the big picture in the forefront of your mind, however, it is easier to resist some of those impulse purchases that would otherwise derail your progress. Setting up automatic transfers directly from checking into savings will ensure that your nest egg will grow, sight unseen. In addition, automating bill payments will allow you to reduce the number of late fees and hidden charges that also drain your resources.
2. Cut Unnecessary Expenses
Take time to review that cell phone plan, that video streaming service, and your gym membership; do you really need them? Can you pare down these expenses and allot that money toward paying off debt? You’ll find that you put yourself in a better financial situation if you review your expenses on a regular basis and determine what you “need” and what you “don’t need”. Even a little goes a long way over time; you’d be surprised how quickly that ten dollar charge can add up when you use it to pay down debt.
3. Learn About Investing
Many of us think that the world of investing is too foreign and too complicated to consider delving into. The fact of the matter is, with a little education and some tried and true advice from experts, you could build quite an impressive portfolio over time. Options Animal is a wonderful site for beginners who want to dip their toes in the investing pool, or people who simply want to know a bit more about their existing portfolios. Knowledge is power—educate yourself on saving and investing, and you’ll find the financial road ahead much easier to navigate.
4. Compare Insurance Rates And Raise Deductibles
Auto and home insurance tend to be things that we don’t think about–until we need them. Review your insurance coverage and plan deductibles at least annually, and be prepared to raise deductibles and shop around for better value if the need arises. In raising deductibles, you reduce the monthly payment needed for plan coverage. Ask friends and family for their recommendations on better deals that are available to you.
5. Sell Unwanted Items
It’s time to clean out those closets! You never know what treasures abound underneath piles of Grandpa’s old shirts–you could be sitting on the next coveted Ebay antique worth hundreds or thousands of dollars. Take regular inventory of your closets, storage spaces, and even your garage space to see if you have items that other people would consider valuable, and then commit to letting them go. Your financial situation will improve, and your house will be cleaner!
Improving your financial situation does not have to be a daunting task—buckle down, get some education, and get a clear picture of where you are so you can define where you want to go. The sky’s the limit!