Baskadia

Money Game

Balancing and handling money can be complicated. I have found some basic approaches that have changed my financial realm. Besides these methods, I was not only able to control my spending but also start the road to accumulating real money. By trying these strategies, you are on your way to getting over the wheel regarding your finances.

1.      Set Clear Financial Goals

My practical initiation self-steps included creating precise specific objectives. Whether I set my target for developing an emergency fund, paying off debts, or saving for retirement, I always tried to schedule my goal in measurable milestones. For instance, I immediately aimed to accumulate $500 in three months. This made the goal setting look more realistic and hence assisted in sustaining my motivation throughout the achievement process.

Pro Tip: To stay on track, you must ensure that your goals are SMART, which means:

S-specific

M-measurable

A-achievable

R- relevant

T- time-bound.

2. Create a Realistic Budget

Each person must have a well-elaborated budget because only in this way can you manage money properly. Without one, people are likely to spend more than they need. I turned to the 50/30/20 rule, which has been a game-changer for me:

    50% for needs (accommodation, rent, bills, food)

                                                            30% want dining out entertainment.

                                                                                                20% for savings & investments

Due to this rule, I have ensured that my money gets invested in the right areas. Apps such as Mint enable me to monitor how much I spend and ensure I am not overspending.

3. Build an Emergency Fund

Not having an emergency fund has been one of my worst financial decisions. People never know what awaits them; having an emergency fund saves the day. The first step that I took was to sock away at least $100 per month so that I was able to launch my emergency savings of 3-6 months. This cushion has saved me whenever car breakdowns or any form of emergency calls for cash.

Pro Tip: It’s key to automate contributions towards your emergency fund so as not to develop the habit of incurring more expenses than you are saving.

4. Pay Off High-Interest Debt

Expensive credit can quickly become problematic. Therefore, it became my goal to reduce it. I applied the snowball approach and paid for the lowest balances on all my credit cards. This gave immediate feedback and appealed to me for more significant debts. When I wiped out high interest-bearing obligations, I had more cash for saving and investing.

5. You must automate your savings and investments to win the never-ending race against money.

One of the best financial moves I have ever made was automating my savings and investments. I make direct deposits to my savings and retirement accounts so that I’m always saving money. The best part? I don’t need to consider it, and it occurs even when I am not mindful.

Final Thoughts

People should understand that managing their finances is something other than rocket science. With proper goal setting, finance management, and bringing into practice the idea of having an emergency fund and automation of savings and investment, the financial future begins to look different. It was found that the more the one started to invest, the more s/he benefited in the future. Therefore, everybody should understand that gradual transformations and changes will eventually bring financial freedom. Take charge today and see that your money is making a round correctly.

Be part of this Financial Freedom Movement.

What steps have you taken toward mastering your finances? Let me know in the comments below! Let’s continue this journey together and build a brighter, wealthier future