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Five Personal Finance Tips That To Change How You Think About Money.

July 7, 2020 by  
Filed under Business, Money, Opinion, Weekly Columns

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( Money makes the world go around, and we all spend a lot more time than we’d probably like thinking or worrying about it. Whether you’re recovering from debt, saving for a big purchase like a house, or would just like to be more financially savvy, there’s always room for more understanding of finances to help you be smarter with your money. Change how you think about money with these personal finance tips. 

1. Make a financial calendar. If you can’t trust yourself to remember to pay your bills or your taxes on time or check your credit report on a regular basis, then set appointments for yourself in your calendar. List all your important money-to-dos, as you would add a car tune-up or a doctor’s appointment in your calendar. This way, you can stay on top of things, and whether you need to remember to cancel that free trial you used to look at your credit report or pay back fast loans, you won’t forget and end up out of pocket or in trouble.

2. Check your interest rate. If you have multiple loans, which one should you be paying back first? Always pay back the loan with the highest interest rate first, as this one will cost you more over time. If you’re opening a savings account, check the interest rates. Open the one with the best interest rate so you can grow your savings as much as possible. A credit card is hard to understand because of the compound interest rate. Paying attention to interest rates will help you to make informed decisions about debts and savings. 

3. Track your net worth. Your net worth is the difference between your assets and your debt. This big picture number can tell you where you stand on a financial level. Keep an eye on your net worth, and it can tell you what kind of progress you’re making towards your financial goals, or give you a warning if you’re sliding back. 

4. Set a budget. A budget is the smartest way to manage your money. Start by calculating all the money you have coming in. Include your salary, any benefits, any extra money you earn from side gigs, child support, or any other income. Now look at all your outgoings. List out what you need to pay out on rent or the mortgage, bills, transport, and groceries every month. Set a budget for the rest of your money for things like entertainment, clothing, and eating out. It’s up to how much of your budget you spend on these things, and much you leave to save, but by budgeting, you can make sure you aren’t living beyond your means. 

5. Swap to using cash. If you’re guilty of overspending or making impulse purchases, try leaving your cards at home. For many people, cash feels more ‘real’ when you hand it over, instead of putting purchases on your card, so you may be more likely to rethink before making a purchase that you don’t really need.

Staff Writer; Sherry Ross

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