When it comes to managing your own money, there are a lot of helpful (and sometimes unsolicited) advice that are really good. Most of the time, however, these are all easier said than done.
You probably heard multiple times by now that you should spend less on frivolous things and more on more meaningful, long-term investments, but how exactly do you start? Self-awareness is the key to understanding your money habits. With that, here are a few money questions you should ask yourself:
Do you know where your money goes?
“Who cares?” shouldn’t be an answer when it comes to money-related questions. It is your money; you should care. Say you’re neck deep in debt, you can only depend on yourself to get you out of that hole.
If you have a hard time trying to keep up on payments for credit cards, store cards, loans, and other expenses, look for the best consolidated loans to pay all your debit and get your numbers in order. Your goal here is to track all your resources to determine what takes up most of your money and what you can forego.
Are you active enough in monitoring your spending?
You probably already know the formula to saving money, but actually doing it is a whole other story. Setting aside money from your income for savings is easy on paper, but committing to it takes a whole lot of effort. When it comes to getting your finances in order, knowing what to do is only half the story.
Be proactive. If you need to set aside money from your regular salary, set up another savings account. If you know the formula to saving money, use it. If you need to pay off your debts and combine all your payments, find a good consolidation loan. Don’t just wait around. Do something.
Are you consistent in protecting your money?
Many people start tracking their expenses only to give up a few weeks after because it was such a chore for them. Avoid this by getting all the help you can. Use a mobile app, a spreadsheet, or a simple pen and paper to monitor your financials. Make a habit of your money tracking and everything else will be easy.
Planning and doing are the keys to success. Manage your money now and you’ll be well on your way to financial freedom.