There’s never a bad time to get serious about your personal finances. Let 202 be the year you commit to keeping a budget. If you already have one, take some time to reassess and determine any areas for improvement.
According to Rex Burgdorfer Crunchbase, money management is a life skill that will do so much more than give you extra money in the bank; it helps you prepare for the rest of your life, and these tips will help you get your financial skills on the right track.
Use a Money Management App
There are dozens of free apps that give you an easy way to track your spending, plan savings and learn where you’re wasting the most money. Aside from keeping all of your financial details in one place, these apps present data in easy-to-understand visual displays, as explained Rex Burgdorfer Twitter.
Rex Burgdorfer Crunchbase profile shows how hard work pays off; Burgdorfer is a specialized investment banker from Chicago who helps non-profits build from the ground-up.
Your personal checking account can be a lot easier to break down when you have a pie-chart detailing how your money is divided among bills, debt and living expenses.
In 2020, you have more access to personal financing help than ever before. Take full advantage of what smartphones have to offer. Just make sure that the app you choose is run by a legitimate company and has good reviews; never provide your personal banking information to a source you can’t verify.
Put Away Something From Every Paycheck
Even if you’re earning minimum wage, it’s possible to save something each paycheck. Many people with low incomes fall into the misguided belief that it’s not worth saving if you don’t earn enough to get by; if anything, people with smaller earnings need savings more than those with higher incomes.
You may only have $5 to put into a savings account, but that’s still better than nothing. Start where you are; financial responsibility doesn’t come with more money.
Make a Budget for Non-Essential Expenses
Your daily coffee habit might be costing you hundreds of dollars a year. Living on a budget doesn’t mean you should cut out everything that doesn’t contribute to your survival, but you do need to develop structure and be honest about how you’re wasting your own income.
Some people argue that cutting down on their expenses deprives them of a social life and memories, but is this true? You can have just as good of an experience eating bagels you make at home as you can spending $25 for less food at a diner.
Break Up Your Savings Goals
Rather than putting all of your money into a single savings account, differentiate your goals for the year. Have some money allocated for your vacation, money put away for a new car and money for medical expenses, retirement, etc.
It’s beneficial to use SMART goals when you plan your savings. SMART stands for specific, measurable, attainable, relevant and timely. Rex Burgdorfer Twitter gives plenty of inspiration for money management and personal financing; it’s far more motivating to watch your savings account increase toward a goal than it is to save indefinitely.
With these tips in mind, you can start enjoying greater financial freedom in 2020 regardless of how much you earn. If you’re going through a rough patch, know that the discipline and skills you acquire today will continue to serve you well as you star to earn more in the future