Managing your money and doing it well is one of the greatest skills you can learn. Improve your financial literacy by using the following tips.
All Cash Diet
It’s easy to spend money when you’re using a credit or debit card. You swipe your card and you’re done! This makes it incredibly easy to overspend. One way to get rid of this problem is to put yourself on an all cash diet. This means you take any money out of the bank that you’ll need for gas, groceries, fun money, etc. When you’re physically holding the bills, it makes it harder for you to mindlessly spend. You can physically see the bills dwindling as you spend your cash. Once it’s gone, it’s gone. This will help get you out of the habit of overspending.
Set Specific Financial Goals
It’s easier to stay on track with your money when you make specific financial goals. They can be large or small, but you need something to work towards. Identify the things you need to do to meet these goals and set up checkpoints to help keep you on schedule. This is also a good way to help keep things in perspective. Think: “Is this item I want to buy more important than my overall goal?” It’s a great strategy for staying the course.
Financial Vision Board
Imagine your financial future. What are your dreams when it comes to money? Do you want to retire early? Do you want to buy a hobby farm? Use your ideas to create a financial vision board. It’s so beneficial to have a visual reminder of what you’re working towards. When things get tough, it will help remind you why you’re working hard.
Track Everything
You work hard for your money. That means you should be tracking your bank account constantly. You need to watch every transaction so you know the exact amount of money going in and out each month. Make sure you’re not paying for things you don’t use. Tracking your finances will help you stay within a budget. Creating and sticking to your financial commitments is something that will serve you well throughout the rest of your life.
Financial Calendar
One way to stay organized when it comes to your money is to create a financial calendar. It serves as a way to help remind you of monthly bills as well as yearly bills that are easy to forget about. An article written by Alden Wicker for themuse.com states, “If you don’t trust yourself to remember to pay your quarterly taxes or periodically pull a credit report, think about setting appointment reminders for these important money to-dos in the same way that you would an annual doctor’s visit or car tune-up.”
Improving your financial literacy is one of greatest things you can do for yourself. When you take the time to learn how to handle money, you’re setting yourself up for future success.