Money can’t buy happiness, but it can give you a sense of security. Here’s 6 steps to transition your mindset from simply having money to being wealthy.
If talking about budgeting is boring or stressful to you, you’re not alone. According to a survey by The Penny Hoarder, over 55% of Americans don’t use a budget to manage their money, and 56% of respondents said they didn’t know how much money they spent the prior month. Sure, there’s no one-size-fits-all solution on managing your money the best way…but here are 6 helpful tips and tools that you can use as a starting point.
Ready to start managing your money like a boss?
- Understand your current financial situation. The first step to take is being aware of how much you are spending. It sounds simple, but ask yourself right now, do you know exactly how much money you spent last month? It might be stressful to look at your current situation, but it’s essential to be honest with yourself. You need to understand your income and “out-go” first in order to figure out what needs to change. Our #OneTransactionConference speaker, Tiffany “The Budgetnista” Aliche, recommends creating a physical picture of “money in and money out.” You can do this by entering all your income sources (money-in) and everything you spend on (money-out) every month on a spreadsheet or just writing them down on paper. You might also find our Monthly Budget Tool helpful, which gives you a clear picture of your monthly budget.
- Build a realistic monthly budget. Once you’ve got a handle on your “money-in” and “money-out” habits, you can work on creating a monthly budget. Having – and sticking to – a budget can help you control your finances and make it more difficult to overspend. In a survey of 1,900 Americans, The Penny Hoarder found that those who kept a budget were more likely to know how much they spent the previous month and were less likely to say they had spent money on anything that made it difficult to pay bills on time. Finding a budgeting method that works for you and understanding your spending habits can make a huge difference.
- Make a financial goals list. What’s a plan without goals? Take some time to think about your future plans and make a list. Whether it’s paying off student debt, buying a home, or both, creating a financial goals list can help you adjust your financial plan over time. On the plus side- the list can also be a way to motivate and help you stay focused. Boss money managers don’t lose sight of their goals.
- Cut back on expenses. Look closely at your money-in/money-out situation and goals, find unnecessary costs, and make as OT Genasis said and, “cut it, cut it, cut it” right out of your monthly budget. Small dollar cutbacks can have an incredible impact here. For example, cutting out that a daily $4 purchase can lead to an additional $1,300 for the year! What could you do with an additional $1,300 a year in your money-out plan?
- Keep track of your spendings. Take five to ten minutes of your day to check up on your money. Our Money Management tool is a free suite of tools our customers can use to help with managing money efficiently and securely. Through online banking or our highly-rated mobile app, you’ll be able to take a look at your spending from wherever you are. With just a glance, you’ll see things like renewing subscriptions and recurring debits like rent, utilities, and more. You can also add external accounts and lines of credit and have a single view of all your money in one place.
- #GetFinanciallyLit with our Financial Education Center. Knowledge is power., and we believe in empowering our community. Our free – for everybody – Financial Education Center is filled with short and incredibly informative sessions to help you gain the knowledge and skills you need to make the financial decisions that are best for you and your family. Did we mention they are free? Because they are. From starting your career or business to planning for significant life events, all of the sessions in our center are available for free, and you can access them anytime from anywhere.
Remember that having a strong mindset plays an essential role in managing your money like a boss; master your thoughts to reach your goals and create the financial freedom you deserve.
Want more money managing tips? Make sure to check out our “Manage Your Money Like a Boss” playlist on YouTube and dig deeper on how to be one step ahead managing your money with financial experts like Ross Mac, Tiffany Aliche, Chris Browning, and our President and COO Teri Williams.
It’s time to put building wealth for you and your family on the list of your financial goals. It’s time to manage your money like a boss.
