The best way to become financially free and even debt-free is to gain back control of your finances. You might have fallen off on your financial goals, and thus become indebted, but going along with financial planning will make it work while. First start by monitoring your money.
1. Track your money.
Look deeply at the thing you are spending your money on. Might need to look at the little things you are spending on in order to know what the problem is. Monitoring and tracking your money keeps the issue of personal finance front and center, and it will frustrate you to deal with the situation.
Badly managed financial accounts are like cluttered rooms in your house that you cannot walk through. Don’t put your blinders on. Confront them before you hurt yourself!
If you are like most people, you run out of money by the end of the month. You probably wonder where it all goes. No matter how much money you make, you are not immune to this phenomenon without proper money management skills.
Investments prepare you for unexpected events. When in doubt, you that there is always some extra money that you have somewhere in case it is needed. They don’t wait until the end of the month when they have no money.
Bank savings are also a form of investments you can make to manage money and invest regularly.
The power of compound interest allows you to invest early and often you can build enough extra income. That will also give you a nice extra cash when you are ready to retire.
Building wealth using index funds is also another ways to easily follow a budget and begin investing as a beginner. In order to Invest In Index Funds. You can get help from a no-cost app.
3. Use some tools and resources
Use some tools and resources to help you manage your money. A fast way is to get help from an investment website or an app.
The website or app helps you invest; they help you track your spending, too. They can help you save and budget your money. It’s also a good tool to help you understand more about our economy even if you’ve been budgeting or a beginner.
4. Be intentional with your spending.
Set your budget and be intentional with your spending. Have a plan for how you will use your new paycheck. Plan accordingly for emergencies and separate that savings. When using your other income, put together your budget to figure out your home expenditures. Even if you have not started this, it is never too late to begin financial management.
5. Address your spending habits.
Gain control of your finances by starting with addressing your spending habits.
Unless you bring your finances into focus, you will not know what really goes on in your financial accounts.
Take a closer look at your one-time purchases and your subscriptions. It might be tough to make these decisions, but some ways people have done it is by look at the payment form they use to make these subscriptions. Some people go so far as to switch to cash-only transactions and use the cash envelope system, while others only use debit cards. Either works, as long as you make sure you are not accruing any adiditional debt.
6. Simplify and be debt-free
Consider limiting the number of active accounts you have for subscriptions. Try to reduce them and keep things all together as much as you can.
Although consolidating debt may be an attractive option, try this snowball method of focusing on one debt at a time, starting with your smallest!
This tool of financial management works because it allows you to reduce debt and roll your payments over until they are big enough to tackle even the hardest debt.
7. Refinance your private student loans.
If you do not have to take such loans, avoid it. If you have private student loans, your interest rates might be high. Because you financed these loans when you either didn’t have a credit score or your credit score was low, chances are you were given a higher interest rate.
Refinancing your private student loans, will help you save money each month. This will also allow you to pay off your student loans faster!
8. Emergency fund prep
Emergencies happen. From unexpected medical bills to cars that eventually break down, there will come a time when you will need access to money set aside for emergencies.
An emergency fund can keep you from going further into debt when something unexpected arises
Separate the other funds and determine 3 months of necessary expenses and use for those accordingly. Necessary expenses include expenses such as light bills, groceries, and insurance and even hospital visits.
9. Find simple ways to make extra income.
If you want to increase your income so that you can do things like save for an emergency fund faster or pay off more debt, then you’ll want simple and easy ways to make more money.
A great way to make money or earn free gift cards is by using tools that help reward you for your steps or for walking out. You can even receive points for being healthy, which can then be converted into actual cash payments:
Some apps are willing to pay for them. When you sign up, it will allow you to take online surveys and accrue points. These points can be redeemed for gift cards, PayPal cash, or can be transferred to your bank account. Other website pay you for giving them your opinion. You will briefly sign up and start earning right away. You can earn money from home through Branded surveys by completing online surveys, collecting points, and then redeem those points for gift cards or cash.
There are also free apps that give you points by simply scanning your receipts, where you will earn points each time you scan your receipts. You can redeem the points for gift cards. This is a super simple way to earn extra cash or gift cards. You can Sign up for Fetch Rewards and you will earn 2,000 points when you scan your first receipt
Some others let you earn points by completing certain tasks where you will be given the change to exchange points for gift cards to several amazing stores.
Plan in for large expenses.
Planning for large expenses in ahead of time gives you time to plan out and afford necessities during events like holidays. During holidays, you will most likely spend more --whether it is for organizing the event or for someone important--- and planning for it is a great way to manage your money and stay debt free. One of the common and easy way is to plan for large expenses is to start savings where you will add funds to daily.
Stacy Mitchell is a freelance multimedia journalist and content creator with in-depth experience developing and executing editorial strategy for some of the most pressing topics in finance, including, Gen Z credit literacy, and Personal finance. Contact