Managing money sucks sometimes, especially when it feels like you just never have enough of it… am I right?
Something most of us seem to struggle with is finding good advice which actually helps rather than only sounding good but when put into practice gets you absolutely nowhere. There are a handful of financial principles you can begin implementing into your day-to-day right away which will help ease the burden of taming your financial woes, here they are.
Information Overload is Bad… M’kay
That’s right, it’s bad and don’t you dare get caught up in it’s evil clutches. Learning new skills to better yourself is always a great thing but what happens when you go from the shallow end of the pool to the deep end? You better know how to swim or you’ll drown, that’s what.
Piling one thing on top of the next and then the next is a surefire way to overwhelm your mind with information which means you’ll probably absorb only a fraction of what you might otherwise. Do yourself a favor and pick up just one or two new things at a time, get good at those before moving on to the next and then simply repeat the process. How does this apply to personal finances you might be asking, simple. Picking up a new skill set you could use to start a business, do your own taxes, help your child with homework, literally anything that just makes you better is always useful.
Do More of What Earns The Most
You hear it all the time, “don’t put all your eggs in one basket” and that’s excellent advice. Thing is, some of those tasks will earn you more while others earn less. The sensible thing to do is figure out what’s making you the most or is the most valuable to you for the time spent and then focus on that more while pushing other things back.
It sounds so simple but the surprising fact is that so many people are just too complacent to actually do this. Now, it’s not recommended that you go out of your way to do anything that’s going to make life more difficult for you, that’s never the way to go if you can avoid it. Instead, you should be seeking out new opportunities to branch out to when you have the time and build up from there. Think of the college student who spends their time working and studying instead of going out with friends each weekend for drinks. Sure, they’ll still go out and have fun, who doesn’t like to have fun with friends? But they will also buckle down and do all the tasks necessary to their success and in the end it pays off with a degree and excellent money management skills!
Consider Renting Rather Than Buying Your Home
That’s right, rent instead of buying, at least for the first half of your journey. There’s a whole laundry list of reasons in favor of owning your own home and they’re all great. However, consider the facts which come with being a home & property owner.
You’ll be responsible for every expense that’ll inevitably arise, repairs, maintenance costs, taxes, assessment fees and so on. Now think about what you’re responsible for when you’re a renter… a monthly rent bill and possibly a few utility bills and that’s it. Renting can make your life easier in many ways by reducing the list of things you’re responsible for managing yourself. Sure, this also means you lose some of those freedoms which come with owning your own house but if you can get over those then you’re basically on easy street provide your financial responsibilities are covered each month.
Cut Those Unnecessary Expenses Out ASAP
Are you a member of the local gym but don’t workout regularly? Why not ditch the pass and get yourself a home gym you can put in the corner of some room? What about those subscriptions to various online streaming services you only take advantage once or twice a month? There are on demand options you could opt for instead or simply treat yourself to an outing at the movies ever-so-often instead of forking out that cash each month like clockwork.
The idea is to figure out what you’re spending your money on each month and then chipping away at it as must as possible so it doesn’t affect your quality of life but will still save you money each and every month. Even something as simple as downgrading your internet service to save an extra $10 a month or more, or paying closer attention to that smart phone data usage so you don’t get charged for overages, it all helps and adds up each month.
Put the Plastic Away & Use Cash
This is a great rule of thumb for smaller expenses so you can just pay for things and not have to think much more about it after the fact. By allowing yourself a certain cash budget each month and then breaking that cash up into different expenses you’ll find it much easier to balance your budget as you won’t have to tie specific things to specific expenses.
Save the credit charges for DEBIT expenses for larger things, things which may benefit from keeping close tabs on them such as rent and bills. Paying off your car or covering repairs as needed. The idea is to make life easier by keeping your requirements for tracking finances down to a minimum.
That’s It For Now!
Told you they were super simple but don’t let that fool you, get these right and they can be highly effective. Feel free to check out the other articles we have posted on our website as they are packed with a ton of helpful ideas you can use starting today if you really wanted to!