Money is a tricky topic—especially when you felt like you haven’t been making responsible decisions with it. Sometimes you dig a financial hole so deep with frivolous spending and no intentions on saving that you have no clue how to climb your way out.
But the good news is there are steps to take that can get your financial life back on track. You don’t have to be a millionaire to see positive changes happen with your money. Check out these 9 tips that’ll help you start getting finances in order.
1. Do a Monthly Budget
The first step in getting finances in order to actually know where you stand financially. You can do this by reviewing all of your income and expenses and creating a budget.
Your budget structure may vary depending on your goals. For instance, if you want to focus on saving money then you may put a certain percentage into savings each week or you might want to funnel all your extra dollars into paying off debt. No matter what you choose to do with your funds, you need to map it out.
Another useful function for a budget is knowing where the money is “leaking” from. This means that you can pinpoint exactly where you seem to be spending all your dollars at. A budget is definitely an important part of taking back control over your finances.
2. Cut Down on Frivolous Spending
Remember we spoke about “leaky” money? What this really means is that sometimes you have scenarios where you just get paid and the next thing you know your money is practically all gone. Then you’re left there scratching your head and wondering what happened.
Well you, like most people, probably spend funds on a lot of things that weren’t necessities and ended up overspending. You don’t have to go out with your friends for food and drinks every weekend or buy the latest shoes from every online ad you see.
Start buckling down on when and how you spend.
3. Get Rid of Unnecessary Expenses
You might love that subscription box membership or really think you need those extra cable channels that you barely watch. But the truth is those unnecessary expenses are hindering you from getting finances in order.
Figure your needs first and make sure they’re all met (food, shelter, etc.). After that put money towards saving, investing or other goals. Then, take a little money for having some fun but you don’t want to overdo it so choose what you want to spend on wisely.
4. Get an Annual Credit Report
When most people think of finances they think of money. However, the other important side to cash is credit. Your credit scores are calculated by three major credit bureaus. These scores are basically an average based on your financial behavior and history.
Having good credit can help you with some tough situations in life, such as getting a car or house with a huge downpayment. You can obtain a free full version of your credit report annually. If your scores are low you should start repairing your credit today.
5. Open a Savings Account
If you don’t already have a savings account then you’ll definitely want to open one if you’re serious about getting finances in order. There are different types of savings accounts but the main focus is to get in the habit of storing money for rainy days or anything else you may need.
It doesn’t have to be a large amount of money that you start with. But you should start with a plan to save a consistent amount from every paycheck or another schedule that works for you.
6. Pay Off Debt
The U.S. consumer debt total is currently around 13.51 trillion dollars. Almost everyone has some form of debt whether it be credit card, student loans or homeowner related. And amongst that group, a large majority of those people struggle to pay it off (which can negatively affect your credit scores).
Get on top of debt by finding out what you owe and either paying or disputing it. It may also be easier to consolidate all the smaller debt by using a larger loan so that you are only paying one source. You can try applying for a loan with no credit check for this method.
7. Generate More Income
Since you’re ready to get to paying things off and saving money you might need a little extra cash to help with the process. If you’re currently working and have some leftover time during the week you could apply for a parttime job.
You could also work a side hustle using your talents and skills. For instance, if you good at taking photos start advertising photography services to others. There are also lots of legit apps that help people make extra money these days (such as Lyft, Uber, etc.).
8. Make Investments
The stock market can often be a scary thing for people who aren’t used to investing their money. But it is also one of the best tools for generating large wealth overtime for you and your family.
Again, you don’t have to have hundreds of dollars to begin investing. Research some companies of products that you already use and start from there. Learn different strategies to help you reach short- and longterm investing goals.
9. Set Goals
You’ll never get around to getting finances in order if you don’t start wanting more for yourself. Once you realize you can do better and exercise your potential further, you should start setting goals for yourself.
Small goals help to get the ball rolling. After you’ve proven you can do these things to yourself, you can start moving toward larger goals. The sky isn’t even the limit anymore.
Serious About Getting Finances in Order?
A lot of us have had things happen in life that threw us in a financial rut. And some of us just weren’t taught any lessons about managing money when we were younger.
But now you have the tools, resources and information you need to start getting finances in order and turn them around for good. For more tips and advice on this topic visit our money blog section today.