Don't Feel Like You're 'Good' With Money?
Don't Feel Like You're 'Good' With Money? Here's where to start
Emily Pandise August 24, 2020
Let’s face it: It can take a lot to feel like you’re “good” with money. We don’t learn about personal finance in school, going through credit card bills can be a big scary mess and some so-called experts will shame you for simply buying a cup of coffee. But your finances are not something you can ignore forever. If you feel like you’re not good with money, here are some important principles to keep in mind.
Dealing with your finances isn’t about doing math; it’s about knowledge.
For a lot of people, there’s a big misconception that being good with money means being good at math or knowing the ins and outs of the stock market. That’s simply not true. Yes, you may need to whip out a calculator for some basic number crunching, but you didn't need to earn an A in high school algebra to get a handle on your finances.
Face your fears and start writing everything down.
Check your account balances, debts and spending often to make sure you know where your hard-earned cash is going. Don’t like putting pen to paper? Totally fine. There are plenty of free apps that will help you stay on top of your money.
Pay yourself first.
When you get a paycheck, what’s the first thing you do with it? Before you start paying your landlord, your credit card company or the person who owns your local bodega, you have to pay yourself. If you start saving a little bit each paycheck, even if it’s only $20, that money will grow over time. You’re the one doing the work and earning that cash, and future you deserves to reap the benefits.
Start an automatic transfer from your checking to your savings account each time you get paid. If you can, use a high-yield savings account, which will give you a better interest rate. Interest is basically free money, and there’s no reason not to go for it. Many accounts like these will offer upwards of 1% in interest, whereas many typical checking accounts only offer a fraction of that.
Build good credit without taking on a dollar of debt.
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