7 Amazing Financial Tips for Women That Are Guaranteed to Bring Successby Vivek Patel Local Search Analyst
While managing finances is tough work in itself, women can find it more challenging considering the differences in earning patterns and priorities for both genders. That being said, the key to successful financial management lies in proper planning and execution, something which can be easily achieved with a little help!
So if you're stressed about your finances, you've come to the right place. Here are 7 tips that will bring you success!
Take Matters into Your Own Hands
Managing your finances by yourself is the first step to better financial health. Not only does this give you complete control of your earnings and spendings, but you also get to see a clear picture of your finances over the long term.
Consequently, you have the freedom to invest surplus into a market sector of your choice and get to enjoy transparency. Managing your own finances instead of letting your partner do it for you also allows you to learn from mistakes, making you adept at this responsibility. You can always enlist the help of a professional to guide you through financial decisions and matters though!
Evaluate Your Income
Evaluating your total income is important because it tells you how much money you're making, and whether or not it is enough for your expenses. While you're sure to include your paycheck, don't forget to add income from any second or part-time jobs you do.
If you receive alimony or child support, it counts as income. Also add miscellaneous cash that you might receive from tax rebates, the sale of household items, etc.
Determining how much money you're spending each month can be challenging. Needless to say, your expenses shouldn't exceed your total income! Here is a list of possible expenses to consider so you don't miss out on anything huge:
- Start with listing home and living expenses - this should cover mortgage or rent, taxes, insurance, and miscellaneous expenses for repairs, etc. Also add food, grocery, and entertainment costs.
- Next, list energy and utility costs like your oil and gas bills, water, electricity, telephone and mobile, cable TV and other subscriptions, etc.
- Add automobile expenses like lease or loan payments, insurance payments, and costs related to repairs and maintenance.
- Don't forget credit card payments and investments, if any.
Know Where You Stand
Keeping tabs on your personal finances is easier than before with all the technological advances. So don't shy away from learning how to use the numerous options available to you.
- Make use of your bank's online banking service to keep track of your balance and transactions. Sophisticated banks can also offer money management tools to help you budget and map your money.
- Over-the-top banking services offer, as the name suggests, over-the-top tools for tracking transactions, managing spending, and budgeting. On the plus side, you get round the clock support, and more often than not, lower fees!
- There are lots of online financial management tools that can simplify tracking your transactions, bill payments, and investment management.
- If you want little to no automation, stick to pen and paper, or use spreadsheets and templates to input data and track finances.
Say goodbye to overspending and impulse buys with these tips:
- Prioritize things you need the most. If you're planning to go on a holiday, list it at the top of your planner so you're motivated to keep spending wisely.
- Cut unnecessary spending by listing your expenditures under 'needs' or 'wants'. This will help you see your purchases in a new light, and stop you from buying things classified as 'wants'.
- Put your credit cards away and try to limit spending according to the amount of cash you have in hand.
- Stay away from triggers- if you're lured into the cupcake shop on your way home, try avoiding the route. If a friend wants to spend time with you shopping at the mall, suggest staying in at home or going on a hike together to keep yourself from splurging on things.
- Don't buy the first thing you see; always research and compare prices beforehand. Also, shop around for the best price once you decide on a quality product.
- Do shop around for services too; if you find a cheaper service provider, make the switch. You might want to call existing providers and ask if you can avail any discounts.
- Save money on groceries, food, and entertainment using discount coupons. Buy in bulk and from clearance sales, but don't overdo the shopping just so you can avail deals!
- Look for better options. For example, instead of spending money on imitation jewelry, invest in precious metals. You can choose from a variety of pieces on online shopping sites like BlueStone!
Pay off Debts
Outstanding debt in the form of credit cards, student loans, home loans, car loans, etc. cost you money and cause extra stress. All you need to do is have a solid plan in place and be committed to paying off debt first.
- List all your debts from smallest to largest and from highest to lowest interest rate. Target small debts first if you can pay them off in a few months. If not, focus on paying off debts with the highest interest.
- Take on debts one after the other. Once a debt is paid off, contribute the extra you were paying toward the next debt on the list. This will help build momentum and keep you going.
- Be sure to make minimum payments for each debt on time each month so you don't have to pay higher interest and penalty charges.
- Note that some banks might charge an extra payment fee. So review bank policies and speak to a representative to work out how you can apply the majority of your extra payments to the principal amount.
- Don't fall into the cycle of creating more debt while you're trying to pay off debts! If you think you won't be able to resist using credit cards, consider closing those accounts.
- Setbacks will come about, but don't let them upset you. If you can't pay extra toward your debts for a couple of months, start afresh without being discouraged.
Build an Emergency Fund
Good financial planning is incomplete without preparations for the future. And an emergency fund can be your best friend in the event of an unforeseen disaster!
- You don't have to start building your emergency fund with a huge amount; start small and make it grow bit by bit.
- Set up a separate account for your emergency fund instead of keeping it with the rest of your money.
- Take a close look at your expenses and cut back wherever you can. You don't have to spend on drinks at your local coffee shop every day; limit your visits to about a couple each week and brew your beverage at home on other days! Giving up smoking, taking lunch to work, and reducing intake of soda and high-fat foods can also help build your savings.
- Get a piggy bank and stash away the loose change in it.
- Refrain from using up your emergency fund for entertainment and leisure purposes! True emergencies include major unexpected repairs, health issues, arrangements for family emergencies such as death, etc.
Saving money and getting rid of debt aren't the only ways to financial success; good spending habits are just as important. And with the information provided here, you now know just what you need to do to get your finances in order!
So get started on implementing these amazing tips in your life, and gear up for success!
Created on Feb 8th 2018 07:32. Viewed 371 times.
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