For many people in the United States of America or even other countries, there have been constant difficulties to balance between income and expenditure. Have you put a lot of great budget changes to work for you only to find yourself backsliding time and again? Well, when it comes down to finance matters, there are several ups and downs which need to be encountered in order to perfect your money lane. There are simply top 10 ways to be financially fit in your lifestyle.
1. Spend Less, Save More:
This is common sense advice and a pillar of personal finance. If more is going out than coming in, then you have a problem that needs to be fixed. Make a habit to spend less no matter what and enjoy the pleasure of saving more.
2. Cut out Extravagances:
There is big difference between ‘Need’ and ‘Want’. ‘Need’ falls under buying basic necessities of life and ‘Want’ falls under buying things simply to show-off your lavishness. The million dollar question amongst middle-class groups of people is, ‘Do I have to really buy this?’ Well, you know that you can live happily without having a 42`inch HDTV, then why spend unnecessarily on it. Make sure to live a contented life and not waste money needlessly.
3. Know Your Current Situation:
Putting your head in the sand will only give you an ache in the neck, not control over your finances. Make sure you know exactly how much your total income and expenditure is each month and have a clear picture of what you are spending your money on.
4. Make a Budget:
Just seeing where your money goes can help you realize how much you spending on a daily or monthly basis. Preparing a budget can be a surprise when you actually find out where your money’s going versus where you think your money is going. You can either do a daily budget or monthly budget to see where you stand.
5. Have Clear Financial Goals:
How much will you need for next year’s vacation? When will you need to buy a new car? How much will it cost to give your children the best education? Write down your short, medium and long term goals and work out how much each will cost, for how long you have to save for it and how much you will have to put aside each month in order to get what you want.
6. Decide On Saving Early:
Opening up a long-term saving account or something called the ‘retirement account’ would come handy when you decide to quit a job for good. Starting to save early will work for you as and when your money tree grows bigger over time. The more you add to it the more it will grow. So open up a fixed saving account or retirement account and start contributing to it constantly.
7. Save Your Extra Income:
The concept is simple, whenever you receive a bonus check, a tax refund or a raise just put it into savings. Pretend like you never received it and you won’t miss it at all.
8. Put Aside an Emergency Fund:
This should be used for emergencies only. Start with whatever you can and start contributing to it monthly so that it eventually builds up to 3-6 months of expenses. The important thing is that this makes you feel secure so that you don’t get stressed out because you hit a bump in the road of life.
9. Reward Yourself:
Time for some acknowledgment over your hard work on saving. It can be tiresome saving every penny so buy yourself something every now and then to give you a break. Just be sure you don’t go crazy and ruin all that you have accomplished. Make a list and buy your ‘most wanted’ thing in a period of every 3 or 4 months in a year. Just ensure that you don’t end up exhausting your savings over buying an expensive item.
10. Review Your Financial Energy:
Last but certainly not the least, you need to understand the concept of the flow of money and how you act around money. Is your relationship with money a childish one that makes you stressed, envious and obsessed with money? Establish an adult relationship with money that allows you to be appropriately generous, understand abundance, and to share in the success of others.