Money Management Tips – 50 ways to improve your finances – Part 1 – where to start in order to improve your finances:
Our society is afraid of being labeled as greedy or money hungry, but what must be understood is that money is a crucial part of freedom. From smarter saving to savvier spending, these money management tips will help you prioritize your tasks and reach your goals.
1.Reflect on your money beliefs.
Sometimes, building your wealth has to start by confronting deep-seated fears and beliefs around money. Perhaps your upbringing led you to believe that you can’t enjoy earning money, or you don’t deserve to have a big bank account, so you sabotage yourself by taking actions that ultimately hurt your finances. Exploring those long-held beliefs and massaging them can help you make smarter money decisions.
2.Apply time management lessons to your finances.
Being efficient with your time often translates into being efficient with your money. Top time management gurus suggest picking just one or two financial goals to focus on to avoid getting overwhelmed and also taking advantage of small parcels of time to make progress on those goals. For example, if you have five minutes of down time in your day between meetings, you can log in to your bank account and review your last statement.
3.Use imagery to set your financial goals.
Flipping through images can help inspire and focus goal-setting, says Ellen Rogin, a financial services professional and co-author of “Picture Your Prosperity: Smart Money Moves to Turn Your Vision into Reality.” She encourages people to flip through images, such as beaches or sailboats, when planning their retirement, especially when coordinating with partners to make sure they’re on the same page.
4.Identify your big money goals and share them with friends.
Sharing financial goals with friends– and even strangers through social media – can help you articulate just what those goals are and also hold you accountable. Research on goal-setting suggests that making public statements about goals helps people commit to them, whether they be money or health related. As the new year kicks off, consider sharing your goals on Facebook, Twitter or a social goal-setting site like Linkagoal.
5.Become more financially literate.
Financial literacy is a key factor when it comes to adults building wealth over time, according to research at the University of Massachusetts. If people understand basic concepts when it comes to saving, investing and compound interest, then they are more likely to sit on a significant nest egg as they get older. That’s why making an effort to educate yourself, whether it’s through workplace education programs, online tutorials or these 17 books about money can pay off.
6.Get on the same financial page as your partner.
Coordinating your spending and saving habits with your partner can not only lead to a smoother relationship, it can also mean more money in your joint bank accounts. The blogging couple Derek and Carrie Olsen of derekandcarrie.com suggest holding a monthly get-together to review finances and to share one bank account, which can ease coordination. They also advocate developing a five-year plan, which can help guide daily choices.
7.Calculate your net worth.
Knowing your net worth is a key step toward building it, so take some time to crunch some numbers. Run through your current assets and liabilities to figure out your current net worth, and then you can work on building from there.