Being money savvy doesn’t have to be hard; you must have to know how. These tips will make you more aware of your personal finances and your overall financial situation, and should help you save more and grow your investment portfolio.
Draw Up a Financial Calendar
If you want to track where you money goes, and when, draw up a financial calendar. This way, you can track tax payments, make sure you keep all your accounts up to date and have a general overview of where you money goes during the course of the year.
Keep Tabs on Interest Rates
Always be aware of what you are paying interest on, and what interest rates are. If your credit card has a very high rate, or a loan has hefty interest, pay these off first, as quickly as possible. The faster you pay them off, the less interest you’ll accumulate.
Know Your Net Worth
You don’t have to be an accountant to track your net worth. All this means is knowing the difference between your assets and your debts. It gives you a great idea of the bigger financial picture and where you stand in it. Plus, you’ll see where you are in terms of hitting financial goals.
Set a Budget You Stick to
We say this every time. Set yourself a realistic budget and then stick to it, for example, gambles also have to set budget before getting started with any site. If you don’t budget you’ll never see where your money goes and what mistakes you are making. And if you do, you’ll find saving so much simpler.
To really get on top of your finances you need to set yourself goals that are achievable. Draw up your budget and then see where you can create milestones and goals along the way. You can also add these in to your financial calendar.
Make Friends with a Money Buddy
Finances are not something you should have to tackle alone, and often it is a great idea to chat to someone about your spending, saving and budgeting. Find a money buddy who has similar goals to you and who you can be open and honest about your habits with. This may be a spouse or partner, or it may be the financially savvy person you go to gym with. Chatting about money will make you more comfortable about it too, and other people’s perspectives often help.
Prep for the Worst
And hope got the best! Always ensure you have enough money set aside to get you through a few months without a job, or if you’re faced with a massive medical bill or other emergency. A good rule of thumb is to have 3 months or more salary saved, and if you put this in a high interest yielding account, even better. You may be tempted to dip into this pool to pay off debt and other things quicker, but avoid that temptation, think of this as money you don’t have, and it will be there when you really need it.