A lot of people are overwhelmed by money decisions, especially when you’re dealing with day-to-day bills and debt. There are simple steps you can take to build your financial confidence while saving extra money at the same time.
Spend less than you make.
Be realistic about how far your paycheck can go. Even if you have the money to cover an unnecessary purchase, think about whether it’s worth stretching your budget, or if putting that money aside in savings would be a better use of your funds.
Save a portion of each paycheck. Whether it is $100 or $1, every little bit adds up over time. Get in the habit of saving regularly for school, retirement, debt payments, building an emergency fund, or special purchases.
Sell your unwanted items. Getting rid of unwanted items is a quick way to make money and remove clutter. Even though you may not get back what you paid, it is better than the item sitting around not holding any value.
Create a budget to track your expenses month to month. This may surprise you. Tracking will help you understand your spending habits, and cut the unnecessary expenses. You can budget using a pen and paper, using Excel or through one of many other free online budgeting tools.
Don’t use credit cards as a form of cash. Only charge what you can pay off in a short amount of time and strive to pay off your credit cards every month. If you make this a habit and you won’t be tempted to overcharge.
Set financial goals, short and long-term. Goals give you benchmarks to track your financial progress and to meet your life goals. Setting goals is great way to hold yourself accountable and push yourself to grow.
Check your credit report at least once a year. Your credit report will give you an idea of where you stand with lenders and a chance to make sure the report doesn’t have mistakes that could hinder your financial future.