Hello, my friends; welcome back to yet another blog where we talk all about finances and financial abundance! Today we are going to talk all about how to be good with money. I think we can all agree after this year.
After all the unnecessary Amazon packages that I swear I don’t remember the order, it’s time to get our finances back to where they should be for the year 2021. And hence this blog, my friends. I do it for the people. What can I say?
Let’s get right into it today because we have many important things to go over so we can all prepare ourselves for the year ahead!
What Does it Mean to Be Good With Money?
Let’s be honest here, being good with money is more than just making ends meet these days. And trust me when I say that having good financial skills will make your life a heck of a lot easier.
Therefore, how you spend your money and how you manage your money is crucial to your success. With good management skills, you can keep your debt low and your credit score oh so high, which we really would like to see.
No one said it was going to be easy; however, by being conscious about what you’re spending your money on and how much money you are spending a month, you can easily pick out the flaws in your spending habits that you may not have noticed beforehand.
I get it; we’ve all been there. And with a little help along the way, we can shift ourselves back onto the right track.
How to Be Good With Money
Let’s look at some tips and tricks on how to be good money, shall we?
1. Have a Budget
One of the best ways to begin being better with how you are spending your money is to create a budget for yourself.
To do this, you will want to look at how much you are making a month and then subtract your non-negotiable bills, such as rent, car payments, insurance, etc.
After you have subtracted the items that you absolutely need to pay for (it sucks, I know), you will have a total amount left over each month.
You will need to budget how much for groceries, toiletries, and gas/transit money with this remaining amount. The necessities, if you will.
Once you have finally sorted that headache out, you’ll then have the remaining amount that you can decide what you want to spend on.
I suggest saving at least half of what is over to put into a saving account each month –however, this is totally up to you. Remember, though, we want to be smart with our money and have money in our savings for big purchases for later down the road!
2. Actually Use Your Budget
I’m serious, you guys. You’re going to have to actually use your budget if you are good with money. Otherwise, you just wasted a couple hours of your life for no reason, and time is money, people! Budgeting is weird at first but trusts me, it is life-saving!
This means that you will have to track every single purchase down to the dollar with no exceptions. You can either do this electronically on an excel sheet or budgeting worksheets you find online.
You can even write it down in your journal. The choice is yours! The point is that you stay consistent and keep your budget up to date as consistently as possible, so your budget actually reflects your actual spending for that month!
Read More: Best Budgeting Apps for Couples To Use
3. Look for Deals Wherever You Go
I don’t know if this is just me or it’s a mom thing in general. However, my mom knows how to shop deals. I’m telling you that lady will go into the store and find the best deals possible that sometimes the store owes her money!
I’m not saying go out and get all extreme coupons up here because let’s be honest, nobody has time for that.
All I am saying is that look for deals wherever you can! Instead of buying the name brand products, buy the generic for a while.
You’ll soon come to realize that they work just as well, and they are usually half the price! Free money, okay, you guys, this one is a given! You can also use a couple coupons here and there if you would like!
4. Try to Lay off the Credit Card for a While
Ah, the pesky credit card. This has been my demise for the last couple of months. Here I am putting payments on my credit card left-right and center like it’s nobody’s business, and then I’m shocked when my statement comes out every month.
I need to have a hard look in the mirror before things get way out of hand. You did this to yourself, kid!
On a serious note, if you can avoid putting all your purchases on your credit card, this will help out a lot in the long run. You don’t have to completely cut out your credit line because building your credit is a smart move.
However, try and limit your spending on your card for things such as gas money and groceries and leave it at that. You want to be able to put a lump sum of money onto your credit card every month, be able to pay it off, and have money left over.
5. Live Within Your Means for a Bit
I know it’s hard these days when you feel like you’re trying to compete with people to have the coolest clothes, shoes, cars –you get the point. And that’s great for people who can afford it. And one day you will be able to as well!
But first, we need to live comfortably in our needs for a while so we can get our feet off the ground. This means really looking at what you are spending your money on and thinking twice before buying something.
For instance, I look at things, and I ask myself, “Can I live without these $100 jeans for a little while longer?” and you know what? The answer almost every time is yes.
I can live without these jeans, or without that product or service, you want. If your life doesn’t absolutely depend on it, then you can live without it for a while.
If you’re having trouble with this, then make a goal for yourself and save a little bit each month until you finally have enough to buy that product you want. This way, you aren’t dropping $100 or whatever amount it is out of the blue!
6. Start a Side Gig
Suppose you’ve implemented the above suggestions and you still feel like you are a bit tight on your finances. In that case, there is always the option of starting a side gig for some extra spending cash here and there!
Even if you are making a couple extra hundred a week here and there, that’s money that you didn’t have in your pocket before! You can freelance on Fiverr or selling some of your items here and there online! Get as savvy as you want with this!
7. Try Taking Out Cash Instead of Putting Purchases on Your Cards
If you take out cash every month and use that to pay for things, I guarantee you, you will be a lot more frugal with your spending. Why, you might ask?
Well, for many people, myself included, when you see the money in your wallet begin to disappear, you will then feel more inclined to act responsibly with the money in your wallet.
When you purchase items on your card, there is no way of you knowing how much is left in your bank account after you have made your purchase.
And if you’re anything like me, you will avoid checking your bank account balance for as long as possible until you are absolutely shocked at what you spent.
That’s why having physical cash makes you more conscious about what you are spending. It is also a great way to limit your spending by only taking out a certain amount of money to spend each month for extra things.
Once you have run out of money in your wallet, then you can’t spend anything else on entertainment for the month.
See my friends, it’s not that hard to be good with your money. However, it also isn’t a walk in the park. I suggest starting with making a budget for yourself and spending an hour or so really getting into your finances.
Remember, people who have a hard time spending $1000 a month responsibly are going to have a heck of a hard time spending $10,000 a month responsibly. The key is to nip your bad habits in the butt before you get out of control.
Try out a couple of the recommendations on the list. I promise you will begin to start feeling a lot more confident in your finances and your future in no time. Until next time my friends! It’s been a slice!
Read More: Ways to Make Money During Quarantine