Are you putting off developing a system to keep track of your money?
You aren’t alone. 61% of US adults don’t stay on top of their finances.
If you are looking for a way to change that and learn how finance keeping can help your life, then you’ve come to the right place. This post will show you how to accomplish that.
Keep reading to learn the tricks to tracking and managing your finances.
1. Read Your Statements to Find Little Things
If you’re like a lot of people, you probably spend a little bit of money here and there. It doesn’t cost much, so what’s the worst that could happen?
Those little purchases add up. If you don’t keep track of them, you could end up spending far more than you intended and get yourself in trouble.
Go through your bank statements to find all the little things on there and see if you can cut back.
2. Categorize Everything
One of the first steps to organizing your finances is to categorize all of your expenses.
When you do this, you will get an overview of everything necessary and everything that isn’t. This overview gives you an excellent view to see areas where you can cut spending.
Separate your credit card debt, utilities, food, travel, and entertainment. You can break these down further as needed, but this will provide you a solid base.
3. Consolidate Your Debt
Everywhere you look today there is debt. You have it from student loans, cars, mortgages, credit cards and a host of other sources.
Did you know that you can consolidate your debt and reduce your total payments? Not only that, but you are minimizing the payments you need to make. This consolidation makes things less complicated and helps ensure that you don’t accidentally miss a payment.
This applies to credit cards too. The credit cards for excellent credit you received should be paid off as soon as possible.
4. Use an App
There are a lot of apps available today that can help you with tracking your money. You don’t have to balance everything in a checkbook anymore.
Software like Wave, Mint, and Quickbooks will import your financial statements from all of your accounts and put them in one place. This gives you one overview of everything and allows you to make a plan without switching between several different sources.
5. Make a Budget
After you have everything sorted and available, it’s time to make your budget. When starting this process ask yourself the following questions:
- How much money do I make every month?
- What expenses do I have that I need to pay?
- What am I paying for that I don’t need?
- Do I need an emergency budget?
- Am I able to invest any money?
Answering these questions is an excellent start in figuring out how you should spend every month. Once you have the necessities in place, you can figure out how to save and invest for the future.
Finance Keeping: Get Started Today
Finance keeping can seem hard, but it doesn’t have to be. By making a plan, you can reduce the time it takes and saves more of your money.
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