Easy Tips for Staying in Control Financially

If you’ve been working for a few years and are trying to stay on top of your finances and avoid debt, it’s time for you to take your financial goals very seriously. It’s easy to make rookie financial mistakes that can cost you in the long run. In order to avoid those mistakes, here are some easy tips for staying in control financially.

Understand your income

Before you can manage your money, you need to know where it comes from and where it needs to go. Calculate how much money you make each month or week and figure out your yearly salary. Make sure that amount matches what your boss said you would be paid. Notice how much of your paycheck goes towards taxes, social security and a 401K plan. Plan to put some extra money in your 401K, if possible since most companies will match what you put in. Learn about taxes, tax brackets, and how taxes will affect your income.

Create a budget

Managing your money well can feel like a daunting task unless you know much you can spend in a given area. You should give yourself a reasonable amount of money to spend on groceries, gas, rent, insurance etc. The leftover money should go into savings, with a little bit leftover to spend on yourself or family, or on entertainment. By limiting yourself, you will be more likely to save instead of spend.

Set a savings goal

Why would you feel compelled to save if you don’t have a goal to work towards? Find something that you want/need and start saving for it--but only after you’ve established a healthy emergency savings account. You could save for a house, a newer car, to pay off debt, a trip, or a donation. Whatever your goal is, choose to set aside a portion of your paycheck each month to move your goal forward a little at a time.

Review your credit report

You should always have an idea of what your credit score is and what your credit report looks like. This helps to find inaccuracies, protect you from identity theft, and keeps you accountable. If your credit score is low, find ways to bring it up over a period of time.

Stay on top of debt

If you have debt, whether it’s a car payment, a mortgage, or student loan debt, try to pay it down as quickly as you can. Instead of just making the lowest monthly payment, find the smallest amount of debt with the highest interest rate (like student loans or credit card debt) and pay it off as fast as you can. Put as much money as possible towards your debt each month. Paying off debt isn’t a fun way to spend your money but it will pay off in the long run.

These easy tips will help you stay in control of your life financially. If you find yourself struggling to make ends meet or have too many accounts to keep track of, Carolina Money Minders can help you figure things out. We offer services to individuals and small businesses to sort out their financial struggles. Together, we can make it through. Contact a professional at Carolina Money Minders today for a free consultation.