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Money Management: 7 Tips to Managing Your Money Better
Managing your money is a big part of adulting. Doing so can help shake off financial stress and unlock many goals — paying off student loans, owning a home, or taking that posh two-week vacay in Paris.
And it’s likely a lot simpler than you may think: With a little time and know-how, you can take control of your finances. Try these smart money management strategies that will put you on the right track.
How to Manage Your Money: Key Questions to Ask Yourself
How’s Your Money Doing?
Job number one: Assessing where your finances stand. Only by digging in and seeing how much money is coming in, how much is going out, and where it’s going can you be prepped to manage your money better.
Have You Set Any Financial Goals?
Your financial and life goals are as unique as your fingerprint. The thing that’s universal, though, is that you need a solid plan to achieve them. Learn how to develop and prioritize your money goals.
What’s Your Budget?
Think of a budget as your roadmap to successful money management. Invest a bit of time, and you can get your spending and saving in line and start crushing your financial goals.
Do You Have an Emergency Fund?
Life has its twists and turns, and you need to be prepared. Find out the value of an emergency fund (yes, you need one!), how much to stash away, and how to make the saving-up process stressless.
Do You Have a Get-Out-of-Debt Strategy?
Ugh, debt! You want to get rid of it as quickly and affordably as possible, right? Let us show you how.
Should You Automate Your Finances?
By taking advantage of tech tools, you can save time on your finances and avoid late fees and other charges too. Learn the ropes here.
When’s the Last Time You Checked Your Credit?
Your credit is basically your financial reputation, so you want to take good care of it. Follow these steps to checking on it regularly and keeping it in top shape.
Manage Your Money Better
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FAQ
What is money management and why is it important?
Money management means overseeing your personal finances, which can involve budgeting, tracking your spending, saving, and investing, among other tasks. Money management keeps you in control and on target for achieving your financial goals.
How do I prioritize my expenses?
When prioritizing your bills, you should make sure to pay for necessities first, such as housing, food, utilities, healthcare, and insurance. You’ll also want to make sure you pay your debts, which could include student loans, car payments, and at least the minimum on your credit card bill.
What are some common mistakes people make with their money and how can I avoid them?
Common money mistakes include not having or sticking to a budget, accruing too much credit card debt, and not having an emergency fund, among others. You can avoid these issues by getting on a money management plan and budgeting effectively.
What are some resources available for improving my financial literacy?
You might start with your bank: They may offer financial content and tools to build your financial literacy. Books and podcasts by well-regarded and -reviewed experts are another option to explore. Lastly, you may find classes and seminars at local community and continuing ed organizations.