How can you manage your money better and more effectively? You might have come across the advice to “make a budget and stick to it.” That’s good advice, but the word budget can be intimidating to some. Don’t worry. There’s a friendlier way to approach it. Let’s reframe and call it a “spending plan.” Think of it as your guide to achieving financial success. So, instead of dreading budgeting, embrace the idea of a spending plan.
If you need to make more progress
with your spending plan, here are some helpful tips to take control of your
finances, develop good money habits, and avoid financial setbacks. Below are
some financial reminders you may want to set up:
1) Automate your savings: You should be saving money every
time you get paid, which would include saving for retirement, in your emergency
account, and for other goals you might have. Set reminders that coincide with
your pay dates, so you remember to make the transfers. Better yet, automate the
transfers and set reminders so you can check your accounts to make sure the
transfers took place for the right amounts.
2) Schedule your bill payments: With different bill due dates – monthly,
quarterly, and annually – it’s easy to forget when something is coming up. An
excellent way to get around this is to insert all your bills into your budget
and then set reminders to alert you a week or a few days before they are due. Your
financial reminders should include all
your bills, including utilities, credit card, insurance payments, etc.
3) Check your credit for errors: Once a year, at a bare minimum, you should pull
your full credit report, which you can get for free via annualcreditreport.com.
You should also be monitoring your credit score often.
4) Shop around for the best rates at least once
a year: It’s
worth taking some time out once a year to look for the best rates for things
like your auto and home insurance and cell phone plan.
5) Set reminders to review your budget: A budget is vital to financial
stability. However, you must review your budget regularly to ensure you are
budgeting correctly. If your bills increase or decrease, or if you have a
change in your income, you need to update your budget to reflect these changes.
6) Remember to track your spending: You may think balancing a
checkbook is obsolete since everything seems electronic these days. But one of
the most important reminders is to track your spending. Tracking your spending
helps you stick with your budget and shows you what you spend your money on.
7) Review your expenses frequently: It’s much too easy to let
unnecessary spending creep into your budget. Make it a goal to review your
spending every month to see where you can cut spending. This is one of the most
important things you can do because even the little expenses add up.
By implementing these simple steps
and setting financial reminders, you’ll be well on your way to financial
success and a more secure financial future. Remember, implementing a spending
plan is not a one-time event but an ongoing journey. Stay committed and success
will surely follow.
This article originally appeared
in the Voice of Lakewood magazine and is reprinted here with their permission.
