Money Really Matters

A lot of people are having a problem with their finances now because they are ignoring some simple issues in their life. If you figure out everything on what’s going on around you, you’ll deal with it better.

Here are Some Ways for you to improve your Finances:

1.    Decide on your top Priorities

Do you want a cruise vacation? Or do you want more money in your bank account? When you know your big goal, you will know what to do next.

2.   Practice Monthly Automated Saving

When you cannot save money on your own, having it automated by the bank monthly will help you. Small amounts will soon be accumulated to big ones before you know it. Starting from 2-4% twice a month will make a big savings at the end of the year. You can increase your savings when you’ll get used to it.

3.   No More Junk Mail

Most of the time, these junk mails will make you invest or buy. So, don’t bother checking them. It will just waste your time and money. Just focus on your goal.

4.   Create a Spending Journal

When you track every single dollar that you spend, your eyes will be opened to where your money is going. As a result, you will know what to cut back. You may not be aware that you are spending $100 weekly just on snacks or half of your income is going to your taxi cab habit. So, you better know everything. It will be a wake-up call for you.

5.   Cook your Own Food

Eating at fast food is easier to do but money in your pocket will eventually drift off faster too. If you cook your own food, you will save half of what you’re spending for dining outs and to go boxes. Don’t worry if you’re not a good cook. You will learn eventually. There are available recipes online. You can also learn how to be a chef if you’re serious in cooking different menus. There are tons of online schools to choose from.

6.   Electric Bill Awareness

Do some small changes in your home like turning off lights that are not used, not opening the fridge too long, closing doors in unused rooms, turning of the heater or air condition at day time, and unplugging appliances or electronic devices if unused. These will make a big difference in your electric bill. You can save 25% from your normal electric bill when you unplug appliances that are not used like your TV, computer, toaster, coffeemaker, toaster, blender, etc. Save energy.

7.   Saving with Family

It’s okay for adult children to live with their parents as long as they contribute something through rent or helping in the household chores. You can cook while mom is still at work, this will save them money to dine out; or cut the grasses, this will save them from hiring a gardener; or sharing your computer skills, instead for them to hire a web designer. If you can do it why not give them a favor. Helping one another as a family is very important.

8.  Ignore the Market (for the most part)

If you focus too much on the ups and downs of the market, this will stress you a lot. Whenever the market is not good, you’re out of your mind. You cannot concentrate with family happenings and your hobbies anymore. Cable television news is not good, keep away from them. They treat every movement in the market as if it’s a big crash. If your investment is well spread out, I think you’re good. Don’t think too much.

9.   Select the Credit Card that’s best for you

Choose a credit card that gives you reward points whenever you pay off your balance every month. Focus on getting the lowest interest rate they can offer if you will carry debt. Ones you have picked what’s good for you, stop using the other credit cards. But do not close them because it will affect your credit score.

10. Closet Attack

Try to go over your closet. You will be amazed that you’ll find valuable items that you won’t be using anymore but can be donated to charitable institutions. They will be benefit from those for sure. Get a copy of what you’re giving away for your taxes next year. When you do this, you will organize your closet, help the charity, and you’ll get money back through tax deductions.

Nowadays, you have to be wise to improve your financial conditions. It’s not enough to work and receive your salary; by doing simple things in your life, you will gain a lot in the future.

In life, cash flows in and out. In order to deal with it properly, you need to get your finances under control and also your mind in the right thinking.

How is your spending? Is it constrained by your income? Most people don’t pay their bills right away, they wait until they get their paycheck and hope they can pay all the bills out of the money they got. Usually, the bills are more than the paycheck. And that’s a big problem.

If your finances are in the right track, you don’t need to worry because you’ll always have money to pay your bills on time without waiting for your next paycheck.

How to control your Finances?

There are 2 things to keep in mind:

1. Your income should be larger than you expenses.
2. Your checking account should have “enough” money.

Consider distance learning to earn a degree to get a higher paying job when you graduate. If your salary is still not yet enough to cover all your expenses, try to consider emergency belt tightening. This is to get your expenses below your income. After paying bills, spend less. Set aside some cash to your checking account. Try to have a savings or investment account. Small accumulated amounts will eventually be a great help. But this is not easy because you also need to get your mind in control not just your finances.

How to control your Mind?   

The smart way to do this is to think of your situation and view that all the money that flows in your life is your money.

It may be hard to do. And crazy to think that there are dates where in the money flows in and flows out. But if you think that it is all your money it will make a difference because you’ll be in control of your money.

When you’re in control, your finances begin to be in control as well. You will learn how to budget way ahead of time not only when you receive your paycheck. One wrong thing people are doing is, spending like crazy and then gets crazy when their bill arrives and paycheck is not enough to pay them. Think of the things that you can go without for the meantime to lessen your expenses like eating out, watching movies, and attending entertainment events. You can sacrifice these to be able to have enough money for more important things like food, school supplies, electricity, etc.

When you use your mind, you’ll know how to spend wisely. Be in control of your money and NOT you being controlled by money. That’s the Psychology of cash flow.

Most budgets fail. Why? It’s because the first step to budgeting is taken for granted. When it is done properly, I’m sure it will make a great result. But when the most important step is not done, unrealistic and intangible budgets are made and this will end up to a disaster.

Here are the Important Steps that you should do in budgeting:

Keep a Good track of your expenses

You need to know the things that you’ve been spending and know how much too. This would be a reference for your forecasting which will be your starting point. Record everything. It’s that simple. When you do this, you’ll be aware on what’s going on and you’ll be alarmed. This will make you spend less next time because you already have an idea. Keep your receipts.

Make a Format

Use a spreadsheet to keep track of your expenses. This will make it easy for you to calculate and view the running totals on one sheet. Since you’ll not be in front of your computer all the time, it is wise to jot down the expenses as you do them. Bring with you a pen and paper in your purse. And you can add them up to your spreadsheet at the end of the week.

Month End

At the end of the month, check how much did you spend. From there, you can make your budget slightly lower. Pretend that you only have a few dollars to spend next month. Then see how it goes. If you spent lesser the next month, make your budget a little bit lower again until you get a comfortable budget. Something that will not deprive you of some of the good things ones in a while but something that is not too much too.

With this recession that we are facing right now, we should be careful with our money. You should spy on your family members on their spending trips too. It’s like having an FBI job. Let us start a budget and rigorously follow it. Discipline is really needed in times like this. As a mom, impulsive buying is not allowed. Sorry.