Regardless of your personal salary, keeping track of your financials is essential to personal success. More often than not, even high income individuals will end up spending all of their money on bills, expenses and miscellaneous expenses if proper financial tracking is not put in place.
If you’re having difficult with managing your finances, use the following 6 tips to help get you on the right track:
1. Spend Less Month After Month
While not always an easy thing to do, spending less and less every month will help get you into the proper saving state of mind.
Track your savings by percentages. For the first month, start by saving as little as 3 percent of your total income. On an average salary of $3,000 per month, it might not sound like a lot, but $90 is a good start. Every month after that, increase the savings by 2 percent until you reach the 15 percent mark. Without even blinking an eye, you’ll have a decent amount of savings after only one year of trying.
2. Keep a Monthly Budget
Everyone has bills to pay every month, but not everyone keeps track of how much they have to pay.
Create a budget and stick with it. Every time you pay a bill, record how much you paid, when you paid it, and how much you owe. This will help give you a better overview of your current financial status and help you figure out where you need to cut back.
3. Use Cash Only
Unfortunately, credit card are a way of life in the United States, especially if you want to buy a home or car in the future. Cut down as much as possible on the amount of money you spend on credit cards, and try to live with only a cash budget.
To keep your credit active, use each one of your credit cards once a month, whether it be for a tank of gas or a trip to the store.
4. Save 50 Percent of your Raise
If you get a raise in salary at work, put 50 percent of that raise into savings. For example, if you currently make $4,000 per month, and get a 10 percent raise, that’s an additional $400 per month. Add an additional $200 of that raise to your current monthly savings percentage.
Doing this will help you control spending habits, even if you continue to get raises and rise through the ranks.
5. Search for Promo Codes Online
Everyone loves to shop online now because it saves time and money, if you’re careful about what you buy.
Whether you plan on buying new clothes or groceries, always look for coupon codes and only buy when the website offers large discounts.
6. Never Take Out a Payday Loan
Consumers who are short on cash take out payday loans to cover weekly expenses until their next paycheck arrives. Taking out this type of loan will throw you into an endless cycle of debt to the loan company that could last months. Interest rates are high, and this type of loan has been outlawed in many states.