How Great Habits Can Lead To Healthy Personal Finances
Stop Bad Financial Habits And Opt For A Fresh Start
There is a lot of advice out in the world, but how much of it is valuable with regards to your finances? It is generally done with good intentions and in some cases might be sound advice, but usually the information is just too generic to be of real value. It is not always in your best interest to take other people’s generic financial advice, because it could lead to making costly mistakes with your money.
So, what are your options for managing your personal finances and avoiding wasting money on unnecessary things?
You may be one of the many people who do not realize the value of putting money aside for a rainy day. Far too often, you live paycheck to paycheck, saving very little. While this isn’t the ideal, it is better than saving nothing at all, however it’s not the right way to go about it.
Managing Your Personal Finances Efficiently
Here is some information you should keep in mind while you are trying to save for the future. Many people are successful when they use these methods and they have really good results.
Save 20 Percent Of Each Paycheck
Prioritize your wealth building by removing 20% of your pay check as soon as it comes in, and put that money straight into savings. No matter how much you make, reserve 20% of it, and put it into savings. Maintain a separate wallet for this purpose or place it in your savings account. You will have learned an important lesson, and saving the money then allows you to work your way down taking care of everything else, bills first.
Not only will you be putting money away for your future, but you are going to be learning how to better budget your money. There is incredible comfort in having money available just in case a need arises.
Thrive By Keeping It Simple
The iPhone 6 Plus is tempting! All your friends and co-workers have it, however you purchased an iPhone 5s fairly recently. While it may seem like it’s calling your name, you don’t need to buy one because you don’t need one. Question your need for it.
What can the new phone do that your old phone can’t? There’s nothing wrong, of course, with rewarding yourself with some luxuries every once in a while, but you need to keep this to a minimum. When you do want to treat yourself, only do so when you have extra to spend that does not include your 20% savings.
The credit card were not meant to sit on our wallets, they were meant to be used, right? People accumulate a ton of debt using credit cards before they even know it, just by making those small purchases. That $50 dress is on sale and it would look great on you, but can you pay it off in a month? With all the best intentions in the world, credit card debt tends to build very quickly.
It is recommended you pay cash when possible. You only want to use a credit card if you have to use one. Switching from a credit card to a debit card is a great first step.
It is easy to make a budget and manage your personal finance. It is all about getting rid of old, bad habits and creating healthy ones.