Since money makes the world go ‘round, it’s beneficial to polish up your money management skills. There are countless ways to improve your relationship with money. Below are 13 top money tips that will help you better manage your finances and even grow your earning and saving potential.
1. Envision your financial goals. Specify exactly how much money and time you’ll need to reach them. Write down how much debt you want to pay off or how much money you want to save, and by when.
2. Mark your calendar. Save money on late fees by creating a financial calendar. Mark important dates, like quarterly or yearly taxes, monthly mortgage and credit card payments, and regular reviews of your credit report.
3. Review your interest rates. If you have different loans or mountains of credit card debt to pay back, start with the one whose interest rate is highest.
4. Create a budget. Sticking to a budget prevents overspending, as it becomes clear how much money is available for certain needs and wants. If possible, allocate around 30% of income for leisure spending and another 20% for an emergency fund.
5. Pick a mantra to repeat daily. Choose a positive daily mantra to remind yourself how you should or shouldn’t be spending your money. It may help you think twice about your next purchase.
6. Set mini financial goals. Staying committed to long-term financial goals may be easier if we’re rewarded by milestones along the way. So, while saving up to buy a dream house, simultaneously work toward smaller goals, like paying off one credit card or saving for a forthcoming vacation.
7. Think positive (money) thoughts. Stay positive. Don’t talk yourself out of being able to achieve financial goals no matter how overwhelming they are.
8. There’s a right way to negotiate your salary. Whether starting a new job or up for a promotion, get the company to name a figure first. By not revealing your current salary, you may avoid getting low-balled.
9. Raise morale by paying off small debts first. It may build your confidence to pay off little debts before larger ones. Though tackling debts with the highest interest rate first is recommended, boosting your morale is worthwhile.
10. Shell out for experiences. If you want the best value for your money, spend it on experiences, like travel or concerts, instead of material objects. Memorable, soul-searching experiences bring greater joy than things.
11. Save for retirement. The sooner you start saving for retirement, the better, as money you invest now will have more time to grow. After any pay raise, increase the amount you contribute to your retirement account.
12. Avoid dipping into your retirement account. If you cash out early, you’ll face an early-withdrawal penalty and get taxed on the money you take out.
13. Bad credit? Consider a secured credit card. Even with bad credit, you’ll be able to get a secured card, which won’t let you overspend, and will help you build credit.