Finance is involved in every aspect of your life, whether it be directly or indirectly. Managing your money wisely and deciding what you really need to survive helps you manage your life finances better. It is helpful to create a monthly payment schedule on paper and keep it in plain sight for frequent referencing.
Bundle Insurance Services
Many companies offer multiple insurance types. It is ideal to bundle life insurance, homeowner’s/renter’s insurance and auto insurance with one carrier. Not only will this allow you opportunities for more discounts, it minimizes the number of payments made per month. Consider working with an colonial penn insurance company that offers flexible life insurance plans. Ensuring that your family has the funds to pay your final expenses helps reduce some of the burden upon your passing. Structuring the plan for specific use is also ideal.
Cancel Credit Cards
Managing your finances without credit cards helps prevent increased debt. Live by the basic theory that if you do not have the cash-on-hand for something, it is not needed. Not having credit cards helps your personal finances by reducing payments that charge interest. Interest can be considered as an additional, unnecessary expense forcing you to pay more for an item or service in the end.
Create a Written Monthly Budget
Use your income from the last three months to create a strict monthly budget. Add utility bills and necessary payments. Compare this to your income. Then, take the luxury services you pay for each month and create a total. Deduct this from the funds left after necessities. If you find that you have nothing left after paying for luxuries, begin cutting luxuries out. This includes subscription services. The monthly budget will help you save money and have funds available for emergency situations.
Create an Emergency Fund
It is ideal to have a savings account with enough funds to sustain your household for a period of 6 months. The account should be funded to the amount of your necessary household bills, including fuel and food expenses. The idea of an emergency fund is to keep your household afloat in the event of a job loss, major illness or other unforeseen event.
Live Within your Means
Examine your available income each month. Weigh the pros and cons of your current living situation and compare it against monthly financial stress. If you find that you are simply working to pay for your home, car and services, you are not living within your means and should make some changes. Consider moving to a more affordable home and trading in your vehicle for something with lower payments, lower insurance costs and better efficiency.
Attempt to do more yourself. This includes cooking more at home and spending less at restaurants. Invite friends over for potluck gatherings rather than expensive nights out on the town. Consider learning more skills to complete renovations and home repairs yourself instead of hiring expensive contractors. The more you learn to fend for yourself and not rely on credit, services and hired workers, the more money you can put away to better manage your finances over time.
Financial professional and online entrepreneur, I'm best known as The Financial Blogger. I want to make money because I like enjoying life the way it should be; with a lot of great food and wine! I also love to spend time with my lovely wife and 3 kids!
