Almost everyone struggles with money some more than others. Being able to manage your money can assist you in building essential wealth. Here are five steps that can you stop struggling to manage your money.
1. Check your Accounts Monthly
It is impossible to manage your money or the status of it. Staying on top of your finances can be hard work. Yet doing it correctly can help you succeed with money. Make a standing appointment to check your bills, auto payments, credit card statements, bank accounts, retirement plans, and pay stubs once a month. Often people discover overpayments of bills, being short on paychecks, and mistakes on including that save them some additional money. Analyzing your monthly bills, and other accounts is an important component of knowing where you stand financially. There are several applications and website that can help you with this.
Mint is a total money management app and website. It can help you track and build a budget, pay your bills, see your credit score, student loans, bank accounts, retirement plans, other loans, etc. Mint provides reminders and notifications for everything from bill payments to unusual spending while allowing you to invest as well. Mint has been a staple in my financial essentials for years, and the addition of bill payments just make my life so much easier. Check it out!
2. Build and Use a Budget
As we discussed previously, building and using a budget can make you the owner of your money instead of it owning you. A budget tells you what money you have to spend and possibly start that new hobby you want. A budget can help you decide how much money you can afford to add to your retirement plan.
Most people look at budgets are a limitation placed on them on their money. Budgets are looked at as horrible things that are only for people who can’t manage their own money. But I assure you that having a budget can help you master your money and increase your wealth in the long run. Building the budget is only step one. In order for a budget to be successful, you have to execute and follow that budget on a consistent basis in order to see results. For more information regarding budgeting, please see my post on The Top 3 Methods Used for Budgeting.
3. Give yourself some discretionary money
One way to remain on budget and stop struggling to manage your money is to provide yourself with some discretionary money otherwise known as personal spending. Allowing yourself some personal spending money will help you to stick to your budget. Personal spending money can be placed for whatever you wish. I recommend using
4. Contact HR regarding Benefits
Often people leave benefits and money on the table with Human Resources. New employees will sign up for the essential benefits offered through their job (medical, dental, vision, and retirement plans), but leave other valuable benefits on the table. Most people are not taking complete and full advantage of their retirement plan benefits, matching, and vesting. While others are completely unaware of their Flexing Spending Accounts (FSA), Health Saving Accounts (HSA), tuition reimbursement, gym membership reimbursement and etc. Make an appointment with your HR professional to make sure you are aware of all of the benefits offered to you by your job.
5. Save 10% of your Income
The 10% savings rule applies to retirement and emergency savings. Getting into the practice of saving 10% of your income, regularly and consistently, could lead to a significant increase in wealth. As I have discussed before it is vitally important to keep an emergency savings fund. But once you get that years’ worth of income saved that extra money could be saved for other things including adding to your retirement plans. For more information, please see my post on Emergency Funds 101.
Hopefully these five items can help you to manage your money more effectively. I know that these steps have helped me. Any other steps that can help you stop struggling with money? Leave a message in the comments.