Ever felt like it's such a struggle to be good with your money? The good news is that being good with or getting better with your money does not have to be difficult.
The trick is learning various ways to curb your spending and save money that isn't overwhelming. By starting good money habits and dropping bad ones, you will get better with money and reach your financial goals in no time!
10 key tips to get better with your money
Here are 10 tips that will simplify the way you think about and deal with your money. This, in turn, helps you get better with it!
1. Work on your money mindset
If you want to be good with or get better at managing your money, you must first decide you are ready. This means working on your mindset and empowering yourself mentally to succeed. A way to stay empowered could include keeping a journal, saying affirmations, reading books, watching motivational videos, or getting a mentor. These are all ways to keep your mindset in check.
You may have heard the saying, "you become what you think." Well, if you want to get better at managing your money, you have to keep it at the top of your mind.
2. Set specific & measurable goals
You probably have a few goals that money can help you accomplish, right? Setting goals helps you lay out your "why." It also gives you something to work towards or, in other words, a reason to be better with your money.
As you set your goals, keep in mind that you want them to be measurable. You also want to break your big goals down into small easy to digest chunks, so you don't get overwhelmed from pursuing massive goals.
3. Create a plan for your finances
When you have a plan in place, it's easier to get where you are trying to go. Once you've laid out your goals, you want to create a plan to achieve them. How exactly do you intend to pay off your debt, save for retirement, bulk up your emergency savings, put money aside for your other goals, and do all the other things you might want to do?
Well, a good place to start with laying out your plan is to determine how much each item will cost you. Then determine how much time you need and then set things up to start designating funds towards each of your goals according to the priority you have assigned them.
4. Make budgeting your best friend
I know, I know, not a lot of people love (or even like) to budget. However, if you are really serious about getting better with money, you are going to have to fall in love with it. Your budget is basically there to help you track your spending against your income.
Your goal should be to spend less than you earn AND widen the gap between your income and your expenses so you can free up funds to accomplish your goals. The key to budgeting successfully is finding a budgeting method that makes things easy for you and one you like.
5. Automate, automate, automate
Automating your savings is your next best friend! Studies show that people who automate their savings save more than people who don't. Why? Because they stay consistent with their deposits. As a result, they don't give themselves a chance to debate whether they should save or not.
The funds have been automatically assigned to their savings accounts, and they'd have to take extra steps to spend it! Automation is one of the easiest ways for you to get better with your money!
6. Shop with a plan
The easiest way to derail your budget is to go shopping without a plan or a list. This commonly happens when you pick up inexpensive items without realizing how quickly those small costs can add up. A perfect example is going grocery shopping. The same thing can happen if you are mindlessly browsing shops online etc.
To make it easier on yourself and your wallet, make a list of what you need before hitting the shops. Having a list to reference makes you more likely to stick to your plan.
7. Check your credit
Set a reminder on your calendar to check your credit frequently. You want to make sure all the hard work you are putting into improving your finances isn't impacted by inaccurate reporting or identity theft. By the way, you are legally entitled to a free copy of your credit report every 12 months from each of the 3 main credit bureaus.
8. Stay motivated with financial podcasts & videos
Regularly listening to financial podcasts and watching money tips from your favorite female YouTubers will motivate you to achieve your financial goals. Hearing how others have overcome their financial struggles can help you realize you can do it too!
Also, there are many ways you can learn to save and invest your money. Consistently educating yourself on different money topics will help you be better with money.
9. Stop charging purchases
Credit card debt is bad no matter how much money you make. Paying high interest can cost hundreds to thousands of dollars a year. The best thing you can do is quickly reduce your credit card debt and stop charging up your cards. If you can't pay the full balance off every month, then put that plastic away so you can get out of debt and start saving money instead!
10. Have a little fun
All fun and no play...well, you know how the saying goes. It's ok to live a little by splurging every now and then, as long as it fits into your plans and does not derail your goals. A great way to do it is to set up a splurge or fun account for things like shopping, traveling, eating out, etc., and designate some funds to it each month from your budget.
Start now to get better with your money
If you start with these 10 tips, you'll be well on your way to getting better with your money! Another thing to remember when managing your money is that you need to define your needs vs. your wants.
This will help you apply these tips easier because you will be able to determine what you truly need, which will decrease impulse purchases and enable you to hit your money goals faster. Learn more about ditching debt and reach financial success with our FREE financial courses and worksheets!