Five Ways To Be Better With Money

The uncertainty caused by 2020 has made a lot of people take a hard look at their money skills and their finances, in order to improve their financial security. If you’re starting to make changes to your finances and working on your money management skills, here are some simple tips to help you be better with money and more financially secure. 

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  1. Plan for the future. It’s never too early to start preparing for the money that you will need in your old age. It’s a smart idea to start saving for your retirement as soon as you can. The earlier you are able to start, the more you will have to live on in your retirement. If the company you work for has a pension scheme, join it now. Remember that the money you save for retirement will need to cover living expenses and medical care. Consider whether you might need HHA or other care. 
  2. Budget. Learning to work with a budget is an essential skill if you want to be better with money. How you track your budget is up to you, but you need to track every piece of income and outgoings. Note these using an app, paper, or whatever you find easier. With everything tracked, you can easily see where you could potentially make savings. For example, you may be shocked by what you spend on buying lunch every month and can find a cheaper option to spend less money
  3. Pay down your debt. If you have any debts, make it your priority to get those cleared as soon as possible. The longer you stay in debt, the more you will end up owing, due to the increasing interest. Debt can easily get out of control and cause you a lot of financial problems. List all your debts and arrange them into order, with the highest interest rate at the top. Aim to pay this one down first. When that’s paid off, move on to the next highest interest rate. Keep up with at least the minimum payments on all your debts to avoid late fees and harm to your credit score. 
  4. Look for a cheaper alternative. After you’ve tracked all your outgoings, you can see of you can switch some of the expenses you can’t avoid to less expensive options. Would switching supplies save you money on your utility bills? Could you cut your food bill by shopping at different stores, buying different brands, or meal planning more efficiently? You could save a lot by making small changes like this. 
  5. Start saving. If you can, it’s smart to have three to six months of living expenses in a savings account. If you have these savings, if you find yourself out of work for any reason, you have savings to support you for a few months. A lot of people think they can’t afford to save much, but after you’ve made these changes to your budget, you should be able to find enough spare money to put away each month. 

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