I am here to share how you can get smart about your money. Of course everyone in the United States of America would love to take control of their money. But unfortunately most people are intimidated by the topic of money and they make the deadly decision to ignore the topic that would greatly benefit them. Here are some tips on how you can take control over your cash:
1. Pay yourself first:
You work hard for the money. Right? So why are you the one coming up short? Whenever you get that check, you should have a set amount that goes straight to your savings account. This is important because it is a form of self respect and self love. If you love yourself, you pay yourself. David Bach of The Automatic Millionaire suggest saving 10% to 15% of your income. But of course if you can afford to, you can always save more. In order to really commit to this you have to treat your saving accounts like an additional bill.
2. Don't spend more then what you have:
Sorry to break it to you but if you don't have Beyonce money it's time you stop pretending. You need to get real about what you can afford. If you make $1000 and spend $900 you will be happier then someone that spends the $1000 and puts $100 on credit. Believe me when I say; you want to save your credit cards for emergencies only.
3. Get an IRA sooner than later:
Time and consistency are your friend. So my advice to you is to use them. When you start gaining interest on your money sooner then later, the outcome could mean thousands of additional dollars for you during retirement. Just look at the image below and see how time can really benefit you:
If you have debt, you want to kill that immediately. You need to get really serious about getting rid of your debt. Disgust should wash over your face when you look at your credit card bills. Pay off any loans or past due bills as quickly as you can. Debt is not your friend and you should be uncomfortable having it. If you have let your debt get out of control there are plenty of programs that can help. My favorites are Primerica's DebtWatchers and United Credit Education Services.
5. Get Term Life Insurance:
Life insurance is one of the most important components to a person's financial game plan. Unfortunately, it is also one of the most misunderstood topics. Having the right amount of term life insurance makes a major difference in your family's financial security. If you don't have life insurance you need to make getting insured a priority; especially if you have a family (wife/husband and children).
I hope this information was helpful. If not I'm sorry I'm getting better by 1% everyday (this sentence is a joke). Please leave your comments below for feedback.