If you’re like millions of others, money is a huge worry. It can be hard to make ends meet. More often than not, it seems like you’re just working to stay afloat, barely able to stay on top of bills, monthly payments, and having enough food on the table. If you’re ready to turn your life around and get back in control of your finances in 2017, there are a few sure fire ways to put you on the path to financial security.
Budgeting
While budgeting is never easy, it is manageable. The first thing to get in control of is your monthly expenses. Add up all of your expenses that absolutely have to be paid: housing and transportation costs, insurance, and any monthly bills, such as cell phones, credit cards, and loans. Next, find a baseline for money spent monthly for food. Try to plan meals out far in advance and buy in bulk to save money. Add all of these monthly costs together, then add approximately 10 percent of this number to it. This will cover your entire monthly expenses, plus a small buffer, in case of an emergency. Now, subtract this number from your monthly income, which leaves you with your wiggle room. While you can spend this on whatever you want, it’s recommended to start building an emergency fund.
If you need help with your budgeting, there are some great apps that can be of a great service to you.
Spending Habits
Now that you have money set aside for your monthly expenses and are building an emergency fund, it’s time to take a long hard look at what you’ve been spending your money on. This is the hardest part of gaining financial security: realizing your spending habits are more than likely harming your financial freedom. Eating out costs a fortune, as does buying nonessential food and drinks like candy and soda. Morning coffee from Starbucks can be killer on the wallet, while the alternative of brewing your coffee at home is much, much cheaper. Do you really need that new shirt? As you begin to realize what’s necessary to your life and what’s frivolous, you’ll begin to take charge of your finances.
Saving Money
With your emergency fund set up and a monthly budget laid out, you’re in an excellent place that many others never reach. You can begin to make larger payments than before on loans or other expenses, or simply start saving your money. Set goals for your money saving. You can save money for your next dream purchase or vacation or maybe for your children’s education. Make sure that you save in a form that fits the goal of your savings. For example, if you plan on saving for the long run, open a savings account, but if you save money for your next dream vacation, follow the currency in the destination of your choice and buy it when it is cheap. That way you know exactly how much money you have to spend on your vacation. Websites like forextrade.co will help you with this task.
Gaining financial security, especially in this day and age, isn’t a quick fix. It has to be a complete change to your lifestyle or it’ll never work. While it may seem like a hard mountain to climb, you can take control of your money and make it work for you. All it takes is some serious planning, some determination, and the desire to get ahead in life and eventually, live like you deserve.