Introduction
We all want to be in good financial shape, but that’s not always easy. Sure, you could invest your money and hope it grows enough so that someday you don’t have to worry about money anymore. Or, you could keep putting off making a decision because it seems complicated or overwhelming. Either way is fine—but there’s no reason why you can’t do both! After all, we all know that action is better than inaction when it comes to money matters. That said, let us help by giving you some tips on how best to handle your finances:
Ignore the Joneses
- Ignore the Joneses. Comparing yourself to others is a surefire way to make yourself unhappy about your financial situation, so it’s best not to do it at all. If you’re feeling like you need new clothes because your neighbor has some, don’t go out and buy them right away.
- Don’t let other people make your financial decisions for you. If someone tells you that they know what’s best for your finances without any evidence (such as being an expert in a related field), be skeptical about their advice! In general, when it comes down to financial matters—and especially when it comes down to investing—don’t trust anyone who claims they know better than yourself: only trust those who have knowledge based on experience and research rather than opinion alone.
Pay off your credit cards every month
It’s important to pay your credit card bills in full and on time every month. The most effective way to make sure this happens is by making payments before your due date, so you don’t incur interest charges or late fees. Paying off the smallest balance first will help get rid of financial stress faster, so it’s a good idea to prioritize this payment when you sit down at the table and start paying bills.
If you carry a balance on one or more credit cards throughout the month, it can be tempting to use another card for purchases in order to avoid paying interest on those purchases until next month—but that just creates a vicious cycle where you’ll keep racking up debt without ever getting anywhere with it! Keep using cash instead of credit as often as possible; if your budget allows for it, consider switching from multiple credit cards (which have varied interest rates) to one low-interest card that makes sense for your needs; otherwise, stick with cash until things improve financially.
Get a handle on your debt
Now that you have a better idea of where your money is going, it’s time to make a plan. To start, create a list of all the debts you currently owe. Then, find out how much interest each one carries and what is required for payment every month. On top of this information, write down how much money you can afford to pay toward your debts each month.
If all goes according to plan—and it might not—you’ll be able to pay off some or most of the debt in just a few years. But don’t forget: It’s best practice to pay more than just the minimum amount due on any credit card bill or loan payment. For example, if your monthly car payment requires $300 per month but only $200 is needed toward principal and interest payments, put another $100 into an emergency fund (or go on vacation!). Not only will this strategy help reduce things like late fees and increase cash flow for emergencies down the road; but also by doing so you’ll save yourself from having these extra dollars add up over time as compound interest!
To help prioritize where exactly these extra dollars should go first when trying out different methods for paying off debt faster (like snowballing), we recommend tackling whichever item has the highest APR first since those types tend to offer higher interest rates than lower ones do—meaning they’ll cost more money overall if left unchecked too long.”
Embrace a little frugality
- Buy used instead of new.
- Buy quality, not quantity.
- Eat in instead of eating out.
- Save on utilities (electricity, water) by keeping an eye on your usage and turning off lights/appliances when not in use, using energy-efficient light bulbs and appliances, etc.
- Save money on transportation by using public transportation or carpooling for work purposes; walking or biking to work instead of driving; buying a smaller car that is more fuel-efficient than your current vehicle (used cars are usually cheaper than new ones); etc
Be skeptical of financial advisers
- Don’t let your emotions get in the way.
- Ask questions, but don’t be afraid to walk away if you don’t like what they say.
- Always shop around and compare fees and services, even if it means asking for help with the process.
- Never sign up for any financial adviser or planner without reading their contract first, or at least make sure they’ll provide you with one before you sign on.
Teach kids about money
Teach kids about money. Kids are a blank slate and you can teach them to be frugal, generous, smart with money, or any combination of those three.
Teach your children about the importance of saving and investing as early in their lives as possible. It is never too early to start teaching them how to save for the future by putting some of their allowances into an account that they cannot access until they are older.
If you have trouble saving yourself, consider opening an account at a brokerage firm such as TD Ameritrade or Fidelity Investments so that your child will have an opportunity to watch his or her investments grow over time without having access to it before then.*
Try to pay down debt and make good financial moves
- Pay off debt. The first thing you should do is get a handle on your debt and try to get rid of it as soon as possible.
- Learn to be frugal. Like I said, sometimes you have to spend money in order to save money. But that doesn’t mean you have to go crazy spending like the next person just because they are buying something new and shiny.
- Be skeptical of financial advisers. Unless they are giving away their services for free (which means they probably aren’t very good), most financial advisers will charge a fee for their advice regarding investments or other services that may not be needed by someone who is just starting out with their finances and still working on building up their savings/investments accounts before investing in other things like stocks or bonds or real estate properties, etc., which can be expensive depending on how much money needs investing into them per month or year depending on how much time frames are involved with each investment type such as monthly payments instead of yearly ones, etc., so always check around carefully before deciding where else best suits your needs better than others because everyone has different budgets at different times too so don’t assume everyone has similar budgets unless otherwise stated specifically by someone else themselves possibly online somewhere else instead 🙂
Conclusion
In the end, the best way to make good financial decisions is to be informed and do your research. Look into your options, talk to people and learn as much as you can about what works best for you. As long as you’re informed about these matters then anything can happen!