With money comes great responsibility. Being reckless with those benjamin’s could cause way more problems down the road than not just being able to pay your bills for a month. Fix some of those habits now & find better ways to spend those bills.
- Stop living paycheck to paycheck: if you’re spending as much as you earn, what do you have to fall back on when an emergency occurs? Take a look at your essential expenses: rent, utilities, gas, insurance, groceries, etc. Add them up and deduct it from your monthly take-home pay. If it’s more than half of your income, it’s time to double down on the necessities or even pick up a side gig.
- Smartly pay off debt: Credit cards are fun and pretty but can seriously hurt financial goals. Pay more than the minimum amount owed, even by $10 a month and save! We recommend paying down cards with the highest interest rates and highest balances first, or shop around to find cards with lower rates to transfer the balance to then seriously crack down on that debt to get the most bang for your buck.
- Build an Emergency Fund: You know how life goes, it’s a rollercoaster. Do you have extra funds set aside for when your car needs a major repair or if you had a major doctor visit? If the answer is no, it’s time to start building an emergency fund. Start small and let it roll into at least three month’s worth of expenses.
- Stop relying on convenience: Let’s face it, sometimes you’re running errands and your stomach is forcing you to grab fast food, we get it. But that doesn’t mean you should do it all the time. Prep some of your favorite meals in advance, wake up five minutes earlier to brew your own coffee, and learn how to paint your own nails instead of hitting the salon so much.
Money stress is often cited as the number one cause of stress for Americans. Track your spending, fix bad habits, and learn from past mistakes to make finances less of a stress on your everyday life!