When your finances are in order, you are now able to afford that which you thought u could not. And besides having your bills paid on time and avoiding penalties; you also having the allotted money to do all that you desire and or your needs. This is important to your wellbeing, and how you view and feel about your life.
Savings give you a sense of security; no matter what happens you and your loved ones will be fine. This also reduces stress and sometimes familial pressure.
So how do you do all this? Has anyone ever taught u? Did u learn growing up how to manage your money and your finances? I surely did not! The example I grew up with was, we all went shopping every weekend, and stress about bills at the end of the month. So when I grew up and got a job, that's what I did, every two weeks I was in Walmart, so much, that most of the cashiers knew me there. To this day I don't know what I bought exactly, I just knew that I shopped. I felt good knowing I could shop and have all these frivolous things. But what did I really gain from that? I made all that money and gave it all away. Yes I felt empowered, but it didn't really help my future much. I wish I knew then what I know now. I would've saved a whole lot of it, traveled more, invest in a better car, and been much further in life.
How do you get there, you say? Here are some quick steps and tips to get you started!
Step 1: Begin is by making a list of all your expenses including bills, transportation, fast food,shopping,or whatever else u buy, even if it's a $1 coffee. After creating this list you now have a visual of your budget.
Step 2: Total it up then subtract this total from your wages or income.
Step 3: Analyze this list as you now have a clear look at your budget.
Tip: If you are in a negative, now you can look at your budget and maybe cut some costs.
Tip 2 : If you are in a positive here you now have extra to save.
Tip 3: Savings doesn't always have to be extra. It can be an expense.
For me, savings is almost at the top of my list , and even if I cannot afford to then I cut cost someway somehow. I need to have that savings even if it's just $10.
I have a few methods of savings and adjusting my finances but let's start here. How does it feel to now see and feel what you spend? What difference does it make now that you know? For me just creating a budget was empowering. Now I can see. I used mint.com initially for this process. However, pen and paper works just fine. Does this make life better? You tell me...