It is never too late or too early to take control of your finances. Everything that you do today will have an impact so why not make positive changes to make your money work more for you? Here are 10 tips to regain control and keep more cash inside your pocket.
- Take a no-spend challenge.
Pick a month and commit to a spending fast for 30 days. During this time, you stop spending discretionary money while following your budget for essentials like food, transportation, or utilities. Not only is this a fun challenge, it will also allow you to pad your bank account and change your spending habits for good.
- Write a financial plan.
A financial plan is similar to your monthly budget except it covers a longer horizon. This is your larger plan on how to achieve the big milestones in your life like buying a home or saving for retirement.
- Set realistic goals.
Keep your eyes on the prize and you will always find the motivation you need to keep saving each month. As you set your goals, make sure they are realistic. For example, if you want to get rid of debt, it is not smart to aim to pay off $40,000 in debt in a single year when your salary amounts to $30,000. Unrealistic goals will frustrate you and discourage you from making the right financial decisions.
Apart from working actively to earn money, you can invest to have some passive income. Good options include stocks, bonds, mutual funds, real estate, and other financial instruments. When you invest, your money continues to work for you even in your sleep!
- Protect your savings from yourself.
Some people are good at putting money into savings each month but are quick to dip into it, too. This will never build you wealth. Move your savings into a separate account so you do not see it. You can even move it to a certificate of deposit or to another bank that you can only access if you visit personally. Take active steps to protect your savings from yourself!