From the dozens of “I got out of debt” success stories we’ve documented to the scores of psychology studies linking better financial decision-making to behavior change, we’ve accumulated a wealth of knowledge covering the money beat over the years.
Given that it’s Financial Literacy Month, we felt there’d be no better time than now to aggregate our favorite 50 pieces of financial wisdom into one delightful, super-helpful book. These morsels of financial advice are as current as the day they were published, from the finest methods to budget to how to improve your earning potential like a pro.
One approach to feel financially comfortable is to know you have enough money to pay for what you want today and tomorrow. It’s also one of the primary motivations for many of us to save, invest, and insure our possessions.
Here are ten easy money management ideas to help you and your family feel more secure financially.
- Make a detailed budget- noting how much money you obtain from your income, bonuses, benefits reimbursements, and other sources. Compare this to your total expenses to ensure you have enough money to satisfy all of your needs.
- Save money by reducing day-to-day expenses — Look for ways to save money, such as on your mobile phone and cable television plans, or by organizing meals and shopping ahead of time to prevent takeout lunches and late-night ordering.
- Cut costs that aren’t essential – Always keep track of your existing bills and their due dates, and pay them on time to prevent late fees and penalties.
- Look for strategies to reduce the amount of interest you spend on your debts:
• Prioritize paying off the obligations with the highest interest rates.
• Make all of your mandatory payments (such as monthly minimums) on time.
• Consolidate your bills into an “all-in-one” bank account or a secure line of credit, allowing you to make a single monthly payment.
• Speak with a debt counselor; your employer’s Employee and Family Assistance Program may provide you with free counseling (EFAP)
- Establish specific objectives to help you save more quickly – Make a list of everything you’re saving for, then figure out how much you’ll need to set away each month to achieve your goals in the period you want, and “pay” yourself that amount each month as if it were a bill.
- Pay no more tax than is necessary – Find out what tax bracket you and your spouse are in, then file a claim for child care expenses, medical expenses, and charity donations with the tax return for the person who is paying a higher tax rate.
· Take advantage of online banking to:
- Established payment details
- plans for future bill payments
- review And update your spending
- Make the most of your employment arrangements- Make the most of group retirement plans, including matching programs, and use flexible spending accounts and health benefits to decrease taxes and out-of-pocket expenses.
- Regardless of your age, you should start saving for retirement now- Plan to save enough to supplement government-guaranteed sources of income, such as the Canada Pension Plan (CPP).
- Consult a professional advisor— Reduce your money stress and begin to feel more financially secure:
• Get assistance with goal-setting
• Create a personalized financial plan
• Plan effectively for life’s financial challenges
The last point may be the most crucial. According to a 2015 study by Ipsos Reid on health and wealth, people who feel financially comfortable are five times more likely to consult with an advisor than those who claim they are having financial difficulties.
To become a financial expert, keep in mind that you don’t need a fancy degree or specific expertise. If you follow these ten financial principles and financial recommendations, you can be as financially successful as someone who has a hard-earned MBA in finance.