Two things make managing money difficult...
The first is that for most of us, we always want more. We often see contentment not in who we are or what we do, but in what we have. The result is constant pressure we put on ourselves to have more. The second thing that makes controlling our money difficult is the endless options available to spend the money! How much do we save for retirement and where do we invest it? How do we track our spending each month? Should we buy or rent a house? How much life insurance should we buy? The financial decisions we are called upon to make can feel overwhelming.
That is why we created iGrad – to help you get answers to those nagging questions nailed down in one place. We will also provide you with useful tools and resources that you can use well into the future. While no single resource can cover every money management issue, here, we’ll look at 10 simple and easy to follow tips and tricks to help you better manage your money.
Money Management Tips and Tricks:
Track Your Spending By Using a Debit Card.
By using a single source for all your spending it will be far easier to track. If you need to use a credit card, pay it off in full every month.
Keep Track of Your Net Worth.
Determining and tracking your net worth is one of the most important financial management steps you can take. Your net worth is simply the value of everything you own less the amount of all your debts. It’s net worth, not income, that determines true wealth and financial freedom. It is key to remember that a monthly budget is closely tied to net worth. What happens with your monthly budget, whether you spend more than you make or make more than you spend, is reflected in your net worth. Make more than you spend, and the extra income ends up in either increased savings or decreased debt. Spend more than you make, and your debt has to go up. Track your net worth on a simple spreadsheet.
Start Investing Today.
Even if it is as little as $10 a month, have the discipline to start putting some money away each month. It adds up quickly and begins a good habit that should follow you throughout your life. ShareBuilder through ING is an ideal way to do this. With no minimum investment you can build your nest egg at your pace.
Prepare for Periodic Expenses.
Car insurance, life insurance, Christmas and other gifts, car repairs and the like never come at a convenient time. So be prepared. if you are looking for an a place to stash your cash at good interest rates on savings accounts, check out the Orange Savings account at ING.
Save for Emergencies.
Whether you save three months, six months, or even one month worth of living expenses, save for emergencies. Otherwise, you’re living paycheck to paycheck, and there is nothing more liberating than realizing you can survive for some period of time without earned income.
Diversify Your Income.
It doesn’t matter how much you make from your job, having a steady stream of additional income from another source is liberating. There are many ways to earn a second income. Just pick one and get rolling.
Buy a Home and Live In It a Long Time.
With falling real estate prices, many now claim that renting is the way to go. But long term ownership of real estate can build substantial wealth; renting never will.
Take Advantage of Free Money.
There are hundreds of ways to save money that don’t require any sacrifice. Take advantage of 0% balance transfer credit card offers; and buy items through our partner eBates to receive a Big Check every three months. Don’t pass up a good offer when you see one as long as you actually need the item.
Give to a Good Cause.
Whether it is your church, community organization, your alma mater or some other charity, give some of your money away. What’s the point of all this money management fuss if we do not do something meaningful with at least a small portion of our income. Oftentimes these charitable donations can also be tax deductible.
Take Full Advantage of iGrad and Other Internet Tools.
We offer a wealth of tools, resources and offers to help manage your money more effectively. Think of all the things you can do via the Internet in relation to money management: access your checking account, view your investments, apply for a credit card, get a mortgage, check the value of your home, prepare and submit your income taxes, find money saving deals, comparison shop, and the list could go on forever. With iGrad, you can do much of that within our Community, and we hope you return often to take advantage of our services.
What else? Tell us about how you’ve successfully managed your finances or about your challenges? We’d love to herar from you.
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