Perhaps you have tried to improve on how you manage funds and maybe you did well in the first few days. However, you gave up. Try applying these.
Make a financial statement
I know, I have gone through that stage, what you least want is to make a list with everything you earn and everything you spend; Above all, because in this way you realize what you are wasting your money on. However, it is more than necessary and is necessarily the first step; to know how to manage money without dying trying. If not, how will you find out what you are doing wrong to make amends?
Obtaining your financial statement is as simple as writing down on a sheet how much you receive and how much you spend every day. Even if it is the most insignificant expense, you must write it down; but in the end, you will have no idea what you spent all the money on.
Work hard, stay inline
Do you think that the most difficult thing will be having to record all your expenses? It is certainly possible, but once you get used to record all your data, you need to have incredible willpower to avoid extravagant expenses.
So avoid all those expenses that you don’t need and only hurt your economy. Always try to think before you act.
Willpower is very necessary, but once you get used to reflecting more on your expenses; it will be much easier to avoid those “tastes” or “luxuries” that the only thing they produce is that we become over-indebted. Always remember to respect the 50-30-20 rule:
50% of your income must be used for your fixed expenses (rent, payment of services, food); 30% to personal expenses (clothing, technology, entertainment, etc.) or the payment of cards used for these expenses; 20% should be used for savings, and this can be divided into 2 parts; one of them for the emergency fund and the rest for immediate savings goals.
Pay off your debts as soon as possible
An important part that also connects with the previous point is that debts get us out of control. These are the ones that make us spend more than we have and prevent us from keeping our finances in order.
So if at the moment you are more than in debt, you should focus on that 20% that we mentioned earlier to dedicate to savings; play cards, or any other debt you have.
Goals, objectives, and dreams are what you need to save
Perhaps one of the most important reasons why most of us don’t save; it’s that we don’t have enough motivation to do it, that is, we are not clear about the reason why we are saving that money. That is why it is important to have clear savings goals and, if possible, with amounts and everything; for example:
There are simple ways to grow your savings through investing;
Keeping your finances in order is possible and taking control of your finances is simple if you mean it.
If you are moved by rewards. Fidelity might just be for you. They are currently giving out about 100 USD when you open a cash management account with them.
With a cash management account, you can;
- Worry less about account fees and minimums. You still to keep the FDIC coverage!
- Access your fund in many ways.
- Invest with ease, including FDIC-insured certificates of deposit (CDs).