Here are five moves you should make today for better money management
In theory, managing your money is easy. Spend less than you make, and you?re set. Reality proves more difficult, but as long as you remember the five important things below, you are on a good path.
- Boost your savings. General financial advice says to put away 10 percent of your income, but you should shoot for at least 30 percent and preferably 50 percent. If you do this, you could even retire early. Forget the pricey homes and expensive cars; create a savings plan or invest that money instead.
- Keep it simple. Resist the urge to over-complicate things. Forget about shortcuts and get-rich-quick schemes. Work steadily and for the long term.
- Set realistic expectations and be happy with what you have. Your life is yours; don?t be sucked into competing with your next-door neighbors who just bought a flashy car and new boat. Along these lines, don?t blame other people for any money issues you might have.
- Use tools such as automation to keep your impulses in check. Many paychecks are already direct deposited automatically into bank accounts. If yours is not, try to set it up with your employer. Also set up automatic paycheck deductions for retirement plans and other accounts. Automate as many payments as you can?your car payment, your utility payments, any investments you have. This saves time and tedium and also makes it less likely you?ll blow that money on something expensive and frivolous.
- Know your priorities. You usually can?t have everything you want, but you can certainly work toward having what you really want. If you love rare coins but don?t care about cars, then spend less on a car so you have more money for coins.