Tips To Help Create Financial Peace
The Best Money Management Tips To Help Create Financial Peace
Not everyone needs to be a financial wizard, but everyone should be armed with the best — and simplest — money management tips.
And these straightforward items do not require you to be a genius or some math connoisseur either.
Money Management TipsInstead, these tips about money are things anyone can apply and become quite comprehensive with.
These areas below are also what got me on track to eliminating $50,000 in debt and achieving a 65% savings rate without becoming extremely frugal or having a six-figure salary.
This doesn’t mean you won’t get confused at times or be unsure about something, but that’s part of the learning process of financial literacy!
However, the goal of these tips below is to help you feel less stressed and more at peace with your finances. Let’s dive in!
Don’t Get Lost In the Spreadsheets and Numbers
I’m the guy who really dislikes budgeting and staring at numbers daily to see what was spent. But, I still think it’s important to know how to budget and create one if you are truly just getting started.
The trick is to not get caught up in fancy spreadsheets and obsessing over the numbers daily. It can be a distraction from the real financial work and can cause you to get frustrated.
Create a simple budget (monthly expenses, monthly income), stick to it, put it away, review monthly or yearly, adjust, and repeat.
No need to complicate it or be obsessing over every cent.
Master Your Credit Score For Future Endeavors
Whether you know it or not, your credit scores play a huge role in your current and future finances.
This is especially true when you try to get a mortgage with low interest, applying for an apartment, getting approved for credit cards, etc.
Having a poor score can make your life more challenging (like getting approved for loans), so it’s good to start monitoring your scores for free, while correcting and improving your scores.
If you are looking to monitor your scores and get free recommendations, I’d recommend trying Credit Sesame or Credit Karma. It won’t harm your scores to check, and you can learn how to get the highest score possible.
Make Your Savings and “Life Happens” Funds Work For You
We all know the importance of saving money and having a “life happens” fund (you may call them emergency funds, but not everything is an emergency).
And although saving money is great, you also want to put that money to work for you a bit.
This doesn’t mean investing in stocks or index funds (you could later once you have a good buffer saved), but you should still collect some interest on that money.
That way, you’re building some extra cash while it is sitting in savings.
Most banks have pretty dismal interest rate these days, but there are many banks improving that. Some are high-yield online savings accounts, which can average higher than 2%.
It doesn’t sound like much, but most banks have fractional percent interest rates or maybe around 1%.
If you are looking to become a monthly saver and looking to get over great interest on your money, CIT Bank might be a great choice for you. They have some of the best ratings for online banking and is FDIC insured. Learn more and get started with a $100 minimum deposit.
Plan for Retirement ASAP (Even If You Can’t Contribute Much)
“I’ll worry about it later” is a classic excuse, especially for younger people just starting their professional careers.
To continue reading, please go to the original article here: