Personal Finance Management:
Have you ever been in a position where you are living each month just making enough to go from paycheck to paycheck. Well, you’re not alone! A high percentage of people are living in just the same way. But it doesn’t have to be like that! You can start to properly save money for those special things in life all while being much more financially comfortable. So here are 3 tips to improve your Personal Finance Management
Use separate accounts to keep your finances organised.
One small change that has a huge improvement is to make a whole new email purely dedicated to bills and online banking. This separation both allows you to keep track of your finances much more efficiently. This both avoids you missing anything specific to your finances as well as making sure you have an online personal record of when you have paid off your bills. Take it a step further and forward your bills back to yourself with a note the day you paid them off. Allowing you to further keep track of them.
Another great tip on Personal Finance Management is to create a separate banking account devoted to savings for large expenses or even as a rainy day fund. Research has shown that having a different account for savings drastically increases your ability to keep track of your finances as well as avoiding any unexpected financial problems. Splitting your money up and depositing a small portion of your pay into the account will significantly improve your ability not to spend the money as you can train yourself not to spend money in that account until you reach your goal. The ability to not see the money every time you check your normal account will stop you from spending it as the two accounts helps create a mental barrier. You know you can spend what’s in the one account but not the other.
Check your financial accounts daily.
Taking just a small minute every day to check your accounts to know what your budget is and helps you know how you are doing with your money that week or month. This greatly helps you get back on track with your finances and improves your financial decision making for the rest of the day. So get in the habit of popping onto your financial app on your phone every day. One tip to improve on this habit is to put it next to the app you regularly check such as your Facebook or Twitter and so you are more likely to be reminded to do your daily check.
Only avoid bad debt!
Not all debt is bad. There are a large amount of examples of types of debt which financial experts refer to as good debt. These are debts which are tied to an asset which improves you as a person such as student loans tied to your education. So remember invest in yourself and don’t just avoid all debt! But make sure you don’t get yourself caught up in bad debt! Such as credit card debt.
So remember, overall just a few simple changes in your life can have a huge change on your ability to save and make your Personal Finance Management a much less stressful part of your life!
If you have any other great tips on Personal Finance Management tweet me @mrjamesvincent