If you’re like me, you’re always trying to find the next big thing, whether it’s related to food, finances, emotional health, physical improvements, or managing stress. We’re always looking for ways to improve ourselves. With that in mind, I want to share with you five tips that you can use to improve your financial foundation right now. These may be things you’re already doing that you need to improve on, or they may be things you haven’t even thought of yet. So let’s get into it!
Create a Budget
The first thing to do is to create a budget. If you don’t have one, today is a great time to start. Your budget should include your monthly expenses, such as bills, groceries, and going out, as well as savings and investing. I’ve talked about budgeting before, so please check out some other blogs for more details on how to budget correctly. The most important thing is to see where you can cut back on expenses or even increase your earnings, so make adjustments as necessary.
Pay Off High Interest Debt
The next thing you want to do is pay off any high-interest debt that you have. I’ve talked about the debt snowball and how it can be very effective in getting rid of debt, so I would recommend using this method to get rid of your high-interest debt, whether it’s credit card debt, high-interest loans, or any other type of debt that you want to eliminate.
Start Saving
Save, save, save! I cannot stress this enough. You need to have an emergency fund in place for any unexpected bills or expenses you may incur. On the other hand, you also need to save money to have a nest egg for when you eventually grow older and want to put a deposit down on a house or just have some assets that you can use as collateral for loans or other expenses. One thing I like to do to save up, is to have automatic payments taken out as soon as the money hits my account. That way, I never miss the money because it’s like it was never there in the first place.
Shop for Better Deals
Something I really enjoy doing is shopping around for better deals. This can include extreme couponing at the grocery store or trying to find better deals on homeowners insurance or cell phone bills. Often, people don’t change who they’re with or what they’re doing, so they don’t realize they’re not getting the best deal out there. A good rule of thumb is to check on certain bills, such as cell phone and any type of insurance, at least once a year. Additionally, try to find coupons for things you normally buy at the grocery store. I’m not an expert in couponing, but it’s definitely something I’ve been trying to do since I entered adulthood.
Invest
The last thing you can do to really get on the right track and change your financial status is something that I really enjoy talking about, as you may know. So, if you’re not putting enough money into your 401k or Roth IRA, please take this time to look and see if you could be doing more in these areas. The best time to invest was yesterday, and the second-best time is today. So, please consult a financial advisor to determine the best strategy for your goals.
