GirlMogul Money Moxie - Smart Money Moves for Women & their Families
10 Hacks for Taking Control of Your Finances
For some, the thought of managing their finances may evoke feelings of fear and anxiety. But this is one case when facing your fears head on actually works - and leads you to a much better outcome.
AND what I love about being honest about your finances is how FAST you can see results. Unlike say, ummm following a diet, where results seem few and far between, taking charge of your money habit can have instantaneous results!
So even if thinking about money makes you want to throw up, facing up to them will help you manage your anxiety in the long run.
Here are some simple tips to help you get ahead financially.
These tips will help you get a handle on your finances:
1. Don't be afraid to handle your own bills.
Time to own up to your bills. If you're not the one who is doing them now, ask to do it together. Maybe this means setting aside a time every week or month to go over the bills. Create a special place to store paper bills and list out any automatic payments. A budget binder/planner can help
2. Save Money Every Month
You're first step to handling your money is to know that you're not spending everything and then some. In order to get ahead financially YOU NEED to be able to save some of your money. You first use your saved money to pay down credit card debt and build an emergency fund of 3-6 months worth of expenses. After that, you save for big things like vacations AND your future (i.e. retirement)
In some cases, you might want to attack some of these things together. Not sure? Check out the Money Moxie Workbook to help you get your money moxie on.
3. Plan Ahead for the Fun Stuff
Unless you're a celebrity, you should never jet off on vacation unexpectedly. Plan and save for your vacation all year by setting aside money each month in a vacation fund. You can use a separate account or simply keep a written tally of the money you've set aside in your general savings account.
4. Holiday Fund...
Yes, Christmas (or whatever gift-giving holiday you celebrate comes every year...so don't be surprised when all of a sudden you need to start buying gift. Start setting aside money each month for this. Some fun/easy ways to do this - take cash out of your account (make sure you don't incur any ATM fees) and put in a special envelope for this. Take the cash with you when you shop OR as you spend on a debit card, repay yourself.
5. Cars Repair
Cars need repairs too. Oil changes, new tires, brakes...etc. Set aside some money each month for when this happens. If you plan out a projected budget, either on paper or a spreadsheet, put a line item in for car repairs. A great way to figure this out - look at your bank or credit card statement for the last year and try to figure out the total amount you spend last year on car stuff. Add 5%, divide by 12 and set that amount aside
6. Know Your Credit Card Sitch
Credit card fees, interest and not paying full have a way of totally sabotaging our financial plans as you wind up paying WAYYYYY more than you meant to, just because you decided to splurge at Bath and Body Works (yes, I speak from experience.
Understand interest rates and fees on your credit cards. Make your payments on time to avoid extra fees. See if you can negotiate a lower interest rate with your credit card companies or switch to another credit card.
7. Try to refinance Your mortgage
Now you may be ROTFL because interest rates have only been going in one direction for a while - UP and if you bought your house a few years ago, you may be already sitting on a great mortgage rate.
However, here's the things about mortgage rates - they change - so it's always worth KNOWING WHAT YOUR CURRENT RATE IS - and checking to see if the current rates are lower.
Because when interest rates are lower than the one you started your mortgage with, you may be able to save thousands of dollars on your mortgage by refinancing.
This is particularly true if you intend to stay in your house for years.
Do the math to see if refinancing would be advantageous for you.
Bonus
2Consider getting a consolidation loan. If you have a lot of installment loans and credit cards, you may want to consider getting a consolidation loan. This type of loan combines all of your payments so you just make one per month and save money on interest fees.
Rethinking your finances may take some patience on your part. These tips will help. Just try one strategy at a time. Once you get used to that strategy, add another. Repeat this routine until you've mastered all 10 tips. If you need further assistance, it could be beneficial to hire a financial planner to guide you through the details.
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