As long as fitness is concerned, you may have been extremely serious about achieving tones arms and a tight bum which could make Kim Kardashian blush. But there’s something else that you need to focus on and get in shape as soon as possible and that is your finances.
When we get health check-ups done, we can actually benefit in more ways than one and this is also the case with our personal finances. Not always is it true that you need to join hands with an expert professional in order to stay financially fit.
You have to exercise control over your money so that your money doesn’t start controlling you.
But as many of us are not much aware of the steps that we need to take in order to control our personal finances, we’ve compiled a list of tips that you may follow in order to rein in your finances without seeking help of an expert.
#1: Throw off your credit cards from your wallet
Credit cards need to be saved for situations which are urgent only but when you stack them in your wallet, it’s easy to whip out and swipe it during a transaction which could have been done with cash.
Credit cards tend to have become the junk food of your fiscal diet. Whenever you’re tempted to overindulge, the outrageously high interest rates of credit cards will quickly eat up any progress that you have made and push you towards the vicious cycle of debt.
So, remove the junk that you have in your wallet and replace it with enough cash.
#2: Exploit your financial knowledge
The ultimate road to financial freedom starts with the right education. Learn about personal finance.
There are many online resources which make learning on finances – from how to invest to where to invest to the nuances of compound interest rate, perfectly easy-to-learn.
Watch out for some sites so that you can learn on personal finances and avoid being a foolish ignorant person.
To view your holistic financial picture you need to use some kind of tool that can let you view your earnings and spends, from various sources, on a single page. You need to monitor your cash flow, only then you can see the trend and know where to improve.
I use Personal Capital, which lets me see all my financial accounts in one place without having to logon to various banks and brokerage houses.
#3: Cross-check when you choose your benefits
Did you take a look at your workplace benefits since you’ve signed the form 6 months back? Did you even consider giving it a second glance?
Your company might have increased its matched contribution with 401(k) and you may have missed it due to your ignorance.
In case your organization offers health savings account, check whether or not you can get free cash for your upcoming medical expenses.
#4: Boost your automatic savings plan
If you’re someone who still haven’t automated your savings account, do it right now!
With direct deposits in your account, you can use the proceeds to initiate a reserve fund, a college fund, a career-change fund or a start-a-business fund.
Try and get your savings account in its best shape in 2017 by increasing your contribution by bits. Make sure you save at least 10-12% of your paycheck.
#5: Invest smartly and put your emotions behind
Saving money is a smart decision but investing it in the right place is even smarter. Take out a portion of your savings and place it in an investment account.
If you tend to keep your money inside a savings account for too long, you actually lose that money as your wealth tends to shrink due to inflation.
So, one of the easiest ways to start is by opening a Roth IRA as this option helps you grow your wealth tax-free and rack up years of interest rate towards your retirement.
You might be intrigued enough after knowing the above mentioned tips to take stock of your own finances but if you don’t find positive results within few months, you should definitely consider seeking professional help.
Author Bio: This was a guest post from SB @ ONECENTATATIME.COM! SB is an informed husband and father with dexterity for investing and passion for finance. His blog has over 5,000 subscribers and an impressive repertoire for those interested in making money, savings, investing, and family.