According to CNBC, around 25% of Americans say that they worry about money ‘all the time’. If you are worried that you don’t have enough money for rent this month or are worried you haven’t got a complete grasp over your finances, it may be causing you serious stress.
If you are looking for some ways to manage your money better, check out these tips from people who are good with money, and learn about some money mistakes to avoid and money tips you should start implementing now.
Money mistakes to avoid
If you are struggling financially, chances are you might be making one of these money mistakes.
Not having a budget: without a budget, you could be spending more than you can actually afford. Keeping a loose track of your income and expenses every month can help you understand how much you can actually afford to spend on non-essentials, and will help you realize if you are spending too much on things you don’t need.
Not having an emergency fund: having an emergency fund in case you have a financial issue is a must. Otherwise, when you get into financial difficulty, you may resort to a short-term solution (such as a payday loan) which may put you in even more financial difficulty in the long run.
Running up a credit card bill you can’t afford to pay off: using your credit card as a way of spending ‘free money’ is a sure way to get into financial trouble. Being able to pay off your credit card or any other credit every month is vital, as any missed payments will be recorded on your credit score.
Money tips to live by
If you want to become more financially stable, check out these three tips from money experts:
John Gower, a product manager, says: Go bank shopping. you should be comparing banks and the different services and rewards they offer. Some will offer you better deals for your savings.
Kevin Gallegos, a finance expert, says: Live under your means. Keep exactly what you earn each month and spend less. Don’t be tempted by advertising and don’t buy what you don’t need.
Jennifer Coates, an editor for a financial website, says: Have an emergency fund. It is recommended that you save at least $1,000 for emergency funds, as this will stop you from falling into debt when a financial crisis occurs.
Start saving now
One of the most frequent pieces of advice money experts give is to save money. If you want to be financially stable, you must make sure you have some spare money to fall back on in times of crisis. Here are some easy ways to start saving:
Avoid frivolous spending: one of the best ways to save money is to cut down on any unnecessary spending. This could be cutting down on the number of takeaways you get or stopping yourself from buying a coffee before work every day. Whatever money you save from avoiding frivolous spending, put it in a savings account.
Track your spending: It is important to track your spending to know where your money is going. By tracking your expenses you can see what part of your budget needs attention. Maybe your internet promotion period has ended and now your internet bill is significantly higher, or you are spending a lot on an unused gym membership, or your energy usage significantly increased causing your Gas South bill to be higher than normal. Autopay has made it very convenient to pay bills monthly but it can also keep you from monitoring your expenses closely. Besides monitoring your expenses some easy ways to save on your expenses are canceling unused subscriptions, comparing providers to make sure you have the best price, cooking, and making your coffee at home, utilizing energy-efficient tips to lower energy usage and your utility bill.
We all need to understand our finances properly so that we don’t get into financial trouble. If you want to start managing your money better, make sure you listen to the advice of these money experts.