Being able to get organized with your money and knowing how to get the most out of your income is vital because it helps reduce stress and allows you to focus on other, more important things. A lack of organization can be as damaging to your finances as a lack of money.
That is why knowing a few money hacks can help you ensure that you have enough money to pay bills and buy everything you need. This way, you’ll be able to leave money worries behind and live a comfortable life. Keep reading to learn which money habits can help you get your money more organized.
Create a Budget
Having a budget will help you to be more in control of what you spend on and be more aware of it.
Start by writing down all the different ways you earn money every month, be it salary, rent, investments. Then, write your fixed expenses, i.e. all the things that you absolutely have to spend money on every month, such as bills, mortgage or rent, insurance, and so on. The next step is to take away your expenditures from your income. This way, you’ll find out what your disposable income is, or how much you have left to spend on extras like entertainment, clothes, holidays.
Once you understand your position, you can begin to adjust your monthly expenditures in order to get your finances more organized. For example, you might decide you should spend less on clothes or start setting more money aside as you have more disposable income than you originally thought.
Pay Off Your Debts
If you have built up debt, be sure to pay it off as quickly as possible as the interest it creates will continue growing if you don’t.
If you have multiple debts, start by determining the interest rates and pay off what’s costing the most. Try to make as many cutbacks as you can now to speed the process up. You can also try to only pay for things with cash so that you can see exactly how much you’re spending, and only spend what you have.
Did you know that 38% of people pay their bills online? Online banking is accessible 24/7 and can help you keep up to date with what’s going on with your finances at all times. It also saves on paperwork cluttering your house.
You can also automate your savings by setting an automatic sweep into a savings account the same day each month for things like retirement, car fund, or Christmas shopping.
Finally, you can also use a budgeting app like Zeta, Mint, or PocketGuard. These apps connect to your credit cards and bank account and help you understand your income and expenditures so that you have maximum control over your finances.
Making lists – whether on a piece of paper, on an electronic device, in a planner, or via a phone app – can really help you save time and money. You can make a list for the grocery store, a list of bills to pay, or even a list with your short- and long-term financial goals. Where do you want to be financially in the next ten years, five years, this year, or even this month? Do want to put new carpeting into your living room or pay off your mortgage faster?
Seeing your lists will help focus, track your spending, and understand where your money is going.
Curb Your Online Shopping Addiction
Since the Covid-19 outbreak, online shopping has become a very popular pastime. In 2020, retail eCommerce sales worldwide amounted to $4.28 trillion and e-retail revenues are projected to reach $5.4 trillion in 2022.
Online shopping is easy, convenient, and available 24/7. However, it can also be very expensive when you make unplanned purchases. Even when you know there are better uses for your time and money, it can still be difficult to stop. So what can you do?
Simple strategies like unsubscribing from newsletters you receive from online retailers and removing your credit cards can go a long way toward helping you resist the temptation to buy online. However, the most effective strategy might be identifying more meaningful uses of your money, like giving more to charitable organizations or opening a savings account for your kids.
Getting organized with your money is one of the best ways to look after yourself and your family. The tips in this article can help you build better spending habits and, as a result, improve the health of your budget, increase your savings, and set you on a path towards reaching your money goals.