5 Ways to Dramatically Improve Your Finances Starting Today

Regardless of where you’re at financially right now, it’s so important (if you’re not already doing so) to get on the path to improving your money situation — ASAP! In times of economic stress and uncertainty such as now, there’s nothing more important than solidifying your financial foundation.

Here are my top 5 Ways to Dramatically Improve Your Finances . . . Starting Today:

1. See where you’re spending. Start your plan by writing down where you spend every dollar over the next month. You may be surprised at what you’re spending money on – and how much you’re spending on certain things.

2. Make a budget. If you’re married, you both MUST agree to it. Once you know what you’re spending and where, create a written budget and stick to it. It’s the most effective way to stay within your means and curb bad spending habits. Be sure to review your budget monthly, as a budget will ebb and flow and EACH month is unique.

3. Eliminate your debt – ALL of it. The more debt you can pay off, the less interest you will have to pay, and the more you can funnel into savings and investments for the future. Start first with getting rid of all your debt except your home mortgage. You can begin to attack the mortgage after you’re saving at about 15% of your gross income, and regularly putting away money for your kid’s college.

4. Start Saving. A savings plan helps you meet financial goals and provides security. Set aside a percentage of your monthly income as savings.10-15% is a good target if you’re in your 20s or 30s, increasing it if you’re older and behind in your retirement planning. Make savings the first “bill” you pay by setting up an automatic investment. Get out of debt first (except your home), though.

5. Pay with cash. It’s one of the surest ways to stay out of debt and easily control your spending. Cash categories should include: groceries, eating out, clothing, miscellaneous, personal care, and “blow money” (personal spending). You’ll save more money and get out of debt quicker using the cash system than practically any other method.

Leave a Reply

Your email address will not be published. Required fields are marked *