Whether you’re trying to save up for a major purchase, a life event, or you want to make sure that you have a nest egg that’s sufficient enough for when you retire, you’ll want to know how to manage your personal finances.
At Flannery & Associates, we’re happy to provide some helpful tips and insights into the steps that you can take today to get started on managing your personal finances!
Track Your Spending & Plan a Budget
The first step towards managing your personal finances is by tracking your monthly expenditures. Having awareness of your spending habits is a great way to see what’s important and what’s not with what you’re buying each month.
Bills and groceries are important, but anything that’s not vital to your financial well-being or health can easily be toned down. You’ll want to create a budget by first analyzing what you need to spend for the important stuff, then create a modest budget for the fun stuff.
Lookout for any subscription services that you don’t use anymore, automatic charges for things you don’t need, or cut out the least favorite of your streaming services.
Put Aside What You Don’t Spend
Savings are important, but if you’re spending a lot each month, it may not be that simple. However, having an emergency fund can be a major help should an unexpected and costly event were to occur. So, you’ll want to make sure that you have some finances to rely on during those times.
If you decide to cut a few expenses out of your monthly budget, whether it’s cable, takeout, or simple shopping sprees, you can easily put that money aside and into your savings or build up your emergency fund.
Saving money doesn’t have to be a painstaking experience. You can always set up an automatic transfer to your savings account on your paydays, so you can rest easy knowing that you’re saving without having to try.
But while squirreling away money for your emergency fund can be helpful, it isn’t always enough. Accessing a line of credit on your home can be a great safety tool for when an emergency arises that you’ll need significant money for, but only if you really need it. Using a line of credit on your home saves you from having to use your credit card and racking up debt.
Pay Your Bills on Time
No one ever wants to incur late fees, because it’s practically throwing your money away. Stay on top of your bills so you can pay them on time. It will not only ensure that you’re avoiding late fees, but it can also help boost your credit.
You can even try a hands-off approach by setting up an autopay. You pick the date and you’ll automatically pay it without having to write a check or log into an account! Just make sure that you have enough in your accounts to cover these bills every month.
Connect with a Financial Planner
While the tips above can be helpful at getting you started, having a professional financial planner guide you through the process on how to manage personal finances and save for the important things will certainly be a step in the right direction.
Think of a list of questions to ask a financial advisor so you can have a strategic plan to save, budget, and even invest for the future. They’ll provide you with insights that can help you get the most out of your income and savings plan while paving the way to help set you up for the future!
Start Managing Your Personal Finances with a Certified Financial Planner
Now that you learned a few tips on how to manage personal finances and save for the future, you’re ready to get started. If you’re looking to take the next step and speak with a financial planner to help you come up with an actionable plan, you can contact us at Flannery & Associates!
We look forward to helping you plan for the future!