Not Good With Money? These 5 Expert Tips Are Made for You
Not Good With Money? These 5 Expert Tips Are Made for You
Casey Bond Mon, April 18, 2022
Being "good with money" means different things to different people. Maybe it's having a lot of savings, zero debt or a big investment portfolio.
For those who don't have those things, it can feel hopeless. The good news: If you consider yourself bad with money, that's probably not the case. You simply need to learn a few basics. So if you'd like to get your finances on track once and for all, consider these tips from money experts.
Normalize Looking at Your Money
One of the major reasons why people don't develop good money habits is because they're ashamed or afraid to know what's really going on. "If, instead, an individual looks at their money regularly, they will be able to see it more objectively," said Kimbree Redburn, an accredited financial counselor and financial coach at Illuminate Financial. "They will notice trends and patterns and will better understand the flow of money into and out of their account."
Redburn suggested setting up a weekly check-in with your money -- 15 to 20 minutes is plenty. "Put the meeting on your calendar and honor it like you would any other commitment," she said. Next, sit down and look over your previous spending for the past week. Ask yourself whether it was in line with what you expected, or if changes need to be made. Then look ahead at the week ahead, and make a plan for covering the bills and other expenses you have coming up.
Try a Zero-Based Budget
To take control of your finances, you need to tell your money what to do and when to do it, explained Eric Bowie, owner and founder of Smart Money Bro. And that requires having a budget. "I recommend a zero-based budget," he said.
This means setting up your budget so that your income minus expenses equals zero. In other words, every dollar you earn has a job to do, whether that's paying a bill, paying down debt or going toward savings and investments. "A monthly budget where all of your money is spent on paper, is the ultimate top-down management of your finances," Bowie added.
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