Nov 18, 2014
More Zeros Means More Security
Being a better budgeter isn’t necessarily about making more money, but managing the money and resources you already possess.
Here are some practical tips you can try today to help you feel more confident about your money making decisions.
First | Don’t Spend More Than You Make
This seems obvious, yet the national US household average for credit card debt stands at $15,593. This is not that difficult to avoid. Just don’t spend money you don’t have. While this isn’t possible under every circumstance and situation, it is an achievable and realistic goal you can start reaching today.
The best part about this budget technique is that it doesn’t require any system or process. All you have to do is know how much money is coming in each month and spend less than that number.
Here is a skit from Saturday Night Live that illustrates my point perfectly:
Second | Set Budget Goals
Financial goals can be specific or very broad. You could have a goal to pay off a debt or save up money to make a big purchase. In any case, setting budget goals is important for financial stability and success.
Most experts suggest making two sets of goals: long-term goals and short-term goals. Both types of goals are fairly self-explanatory. An example of a long-term goal would be to pay off your mortgage in 10 years while a short term goal would be to save enough money to make a 20 percent down payment on your home.
Third | Understand the “Language of Business”
German philosopher Goethe is attributed to saying, “There is nothing more frightful than ignorance in action.” So, don’t be ignorant in your financial matters. Understand what your assets and liabilities are and take control of your financial understanding today.
Other Tips and Tricks
– Use online programs like Mint, BudgetPulse or BudgetTracker
– Set up auto payments for billings so you never see the money
– Set up auto savings so that your bank automatically takes 10 percent of every paycheck and puts it straight to a saving account
– Differentiate between “needs” and “wants”, doing so will help you spend your money wisely
– Have any other money saving tips you’d like to share? Tell us below.