How to Be Smart With Money

How to Be Smart With Money

How to Be Smart With Money

A common question I get asked each year is about “how to be smart with money”. From fourteen-year-old students to forty-year-old adults, money management can be a scary thing. However, that is okay because there are ways to be smarter about your money. Also, we have a free quiz that you can take to help you assess your money habits and improve.
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One of the most important elements of being smart with money is the budget. Budgeting is your plan for your money. Furthermore, budgeting helps you evaluate the choices you’re taking and if they are helping or hurting you from reaching your goals. Also, budgeting ensures that you will always have enough money for the things you need and the things that are important to you. But enough about that, let’s talk about some tips before we jump into the assessment!
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Tips for Money Management

  1. Know where your money goes: The first step is to create your financial budget so you can know where your money is going. Also, once you see where exactly your money is going each month you may notice something interesting. Furthermore, you will probably notice areas where small amounts of money seem to disappear. These are called spending leaks. You may not realize how much you spend on Netflix, coffee/tea, etc. until you sit down and truly evaluate your budget choices.
  2. Shop smarter: Once you have plugged those pesky spending leaks you’ll have freed up cash. Furthermore, this freed up cash can be directed towards making your dreams into a reality. Nonetheless, you can also make smarter spending decisions to free up money in your budget. Some examples are: (1) avoid impulse buying. (2) take only cash when shopping and don’t spend more than you have. (3) buy generic store brands from the store when the quality is acceptable. (4) compare prices and look for seasonal deals and coupons. (5) and buy bulk quantities from Costco and Sam’s Club of items you use often.
  3. Save for your future: The last item we’ll cover is to pay yourself first! You read us right! Saving (or paying yourself first) is an important step in being smart with your money. It may not be easy. However, it is essential to achieving financial well-being and securing your future. Furthermore, every time you receive a paycheck, save a certain percentage of your income before spending money on anything else. Also, you may choose to have your bank automatically transfer a certain amount of money from your account to your savings each month. This way, you never notice that the money was saved.

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Now time for the quiz!
Share your results on Twitter, Facebook, or Instagram and tag us in it so we know what you got!

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