4 Simple Tips to Feel Better About Your Money – Smarter Finance Journal

4 Simple Tips to Feel Better About Your Money

itsyrmoney-web1Personal finance can be a very intimidating, stressful and, at times, embarrassing. It does not need to be this way though. There are plenty of tips and strategies for improving one’s security and confidence, changing those negative feelings to those of joy, pursuing your dreams, and ultimately doing what you love.

Let me introduce you to some ideas on how you can build a positive relationship with your money, and use your finances as a tool to reach your dreams and achieve your goals:

Building a Financial Safety Net With Your Savings

It all starts with putting aside money to cover the ‘unexpected. This is a basic emergency fund, just in case something bad does happen. The hardest part is starting, but you will be surprised at how quickly your savings will add up. An easy way to accomplish this is by using a direct deposit method, starting small with $100 per paycheck to automatically set aside and increase over the course of a few months, or when a raise occurs. Have at least one month of net pay saved before you start paying down debt.

Creating Financial Freedom by Crushing Debt

When you have one month of emergency savings stacked, then try and allocate that toward your credit card debt. Pay off your cards with the highest interest first then start shifting focus toward others areas of debt. It doesn’t take a genius to understand that the quickest way to work out of debt is to increase income! Take on another job, grind, hustle, do whatever you need to do make an extra buck to ensure you climb your way out of the debt pit as soon as possible.

Establishing a Nest Egg to Keep Your Future Financially Secure

We focused on savings and debt repayment to help get you on the right track in the present, but let’s shift gears to get your future squared away. You need to start thinking about your future today; it will make a huge impact when it comes to retirement. It can be difficult to envision it, but its doesn’t mean we shouldn’t start saving for it. Sign up for your work retirement plan, make sure to contribute at least enough to receive a full company match if they offer such benefits. If your employer doesn’t offer such benefits, start a Roth IRA at a discount brokerage firm.

Consider this: by contributing $100 a week towards a retirement account and earning a 7% rate of return, you’ll have over a million dollars after 40 years of savings. If you average an 8% rate of return, you could have over $1,500,000!

How To Do More With the Money You Have

Having a good relationship with your money is more than figuring out how to save or pay debt, it’s also about how to use your money to match your values and interests. Go through your monthly spending habits and figure out where you are wasting, and try to cut down so you can shift your attention to spending toward fulfilling your goals and dreams.

Spending isn’t a bad thing, but it’s all about where you’re spending. Studies show people are happier when they spend their money on experiences rather than material items. It’s about long-term satisfaction, not momentary bliss that leaves you empty handed down the road.

Feeling empowered about your personal finances means learning how to make the most of your money to the the life you truly want to live.

You can achieve financial success, and it’s entirely in your hands to reach stability, security, and eventually, independence.

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