Like any goal, get your finances stable and become financially successful requires the development of good financial habits. I have researched this issue extensively in recent years in my quest to eliminate debt, increase my savings and increase the financial security of my family. I will talk more about these habits individually, but wanted list in a summary (I know, but I am a compulsive list-maker).
Here they are, in no particular order:
1. Automagical make savings. This should be your top priority, especially if you do not have a solid emergency fund. Do the first bill you pay each pay day, with a fixed amount automatically transferred to your checking account to your savings (try a savings account online). Do not even think about this transaction - make sure it happens, each and every payday.
2. Control your impulse spending. The biggest problem for many of us. Impulse spending on restaurants and shopping and online shopping is a great loss to our finances, the biggest budget breaker for many, and a reliable means to be a difficult financial situation. See Watch your spending Impulse for more tips.
3. Rate your expenses, and live frugally. If you've never track your expenses, try a Month Challenge. Then, evaluate how you spend your money, and see what you can cut or reduce. Decide if each of these expenditures is absolutely necessary, then eliminate unnecessary. See How I save money for more. Also read 30 ways to save $ 1 per day.
4. Investing in your future. If you are young, you probably do not think about retirement a lot. But it is important. Even if you think you can always plan for retirement later, do it now. The growth of your investments over time will be surprising if you start in your 20s. Start by increasing your 401 (k) up to your company match, if it is at your disposal. After that, the best way is probably a Roth IRA. Do a little research, but whatever you do, now!
5. Keep your family safe. The first step is to save for an emergency fund, so that if something happens, you have the money. If you have a spouse and / or dependents, you must obtain life insurance and make a will - as soon as possible! Also looking for other insurance, such as owner or tenant of insurance.
6. Remove and avoid debt. If you have any credit cards, personal loans, or other such debt, you must launch a plan to eliminate debt. List your debts and arrange them in order from smallest balance in the biggest summit in substance. Then focus on debt at the top, putting as much as you can, even if only an additional $ 40-50 (more would be preferable). When this amount is paid off, celebrate! Then take the total amount you pay (say $ 70 minimum payment plus an additional $ 50 for a total of $ 120) and add that the minimum payment of the next largest debt. Continue this way, with your snowball additional amount as, until you repay all your debts. This could take several years, but this is a very rewarding and very necessary.
7. Use the envelope. It is a simple system to keep track of how much money you spent. Let's say you set aside three amounts of your budget each payday - one for gas, for a grocery store, one for eating. Remove the amount of pay day, and put them in three separate envelopes. In this way, you can easily check how much you have left for each of these expenditures, and if you miss money, you know immediately. You do not have exceeded those categories. If you regularly short too quickly, you May need to rethink your budget.
8. Paying the bills immediately, or automatically. A good habit is to pay bills as they come in. Also, as far as possible, try to get your bills to be paid through the automatic deduction. For those who can not, use your online bank control system to make regular payments. In this way, all your expenses in your budget are supported.
9. Read about personal finances. The more you educate yourself, your finances will be better.
10. Turn to grow your net worth. Is it that everything you can to improve your net worth, either by reducing your debt, increasing your savings, or increase your income, or all of the above. Looking at new ways to make money or to get paid more for what you do. During the month, if you calculate your net worth of each month, you'll grow. And that feels great.
Here they are, in no particular order:
1. Automagical make savings. This should be your top priority, especially if you do not have a solid emergency fund. Do the first bill you pay each pay day, with a fixed amount automatically transferred to your checking account to your savings (try a savings account online). Do not even think about this transaction - make sure it happens, each and every payday.
2. Control your impulse spending. The biggest problem for many of us. Impulse spending on restaurants and shopping and online shopping is a great loss to our finances, the biggest budget breaker for many, and a reliable means to be a difficult financial situation. See Watch your spending Impulse for more tips.
3. Rate your expenses, and live frugally. If you've never track your expenses, try a Month Challenge. Then, evaluate how you spend your money, and see what you can cut or reduce. Decide if each of these expenditures is absolutely necessary, then eliminate unnecessary. See How I save money for more. Also read 30 ways to save $ 1 per day.
4. Investing in your future. If you are young, you probably do not think about retirement a lot. But it is important. Even if you think you can always plan for retirement later, do it now. The growth of your investments over time will be surprising if you start in your 20s. Start by increasing your 401 (k) up to your company match, if it is at your disposal. After that, the best way is probably a Roth IRA. Do a little research, but whatever you do, now!
5. Keep your family safe. The first step is to save for an emergency fund, so that if something happens, you have the money. If you have a spouse and / or dependents, you must obtain life insurance and make a will - as soon as possible! Also looking for other insurance, such as owner or tenant of insurance.
6. Remove and avoid debt. If you have any credit cards, personal loans, or other such debt, you must launch a plan to eliminate debt. List your debts and arrange them in order from smallest balance in the biggest summit in substance. Then focus on debt at the top, putting as much as you can, even if only an additional $ 40-50 (more would be preferable). When this amount is paid off, celebrate! Then take the total amount you pay (say $ 70 minimum payment plus an additional $ 50 for a total of $ 120) and add that the minimum payment of the next largest debt. Continue this way, with your snowball additional amount as, until you repay all your debts. This could take several years, but this is a very rewarding and very necessary.
7. Use the envelope. It is a simple system to keep track of how much money you spent. Let's say you set aside three amounts of your budget each payday - one for gas, for a grocery store, one for eating. Remove the amount of pay day, and put them in three separate envelopes. In this way, you can easily check how much you have left for each of these expenditures, and if you miss money, you know immediately. You do not have exceeded those categories. If you regularly short too quickly, you May need to rethink your budget.
8. Paying the bills immediately, or automatically. A good habit is to pay bills as they come in. Also, as far as possible, try to get your bills to be paid through the automatic deduction. For those who can not, use your online bank control system to make regular payments. In this way, all your expenses in your budget are supported.
9. Read about personal finances. The more you educate yourself, your finances will be better.
10. Turn to grow your net worth. Is it that everything you can to improve your net worth, either by reducing your debt, increasing your savings, or increase your income, or all of the above. Looking at new ways to make money or to get paid more for what you do. During the month, if you calculate your net worth of each month, you'll grow. And that feels great.
