15 TIPS TO BECOME BETTER WITH MONEY
Most of the people are not in good conditions with money. They failed to master their money, which also becomes the root cause of their shaky financial condition. Becoming better with money doesn’t require rocket science to study. Anybody can master their finance and can master their money.
So here are the 15 TIPS TO BECOME BETTER WITH MONEY
1. Budget Like a Pro
Budgeting is the first and foremost way to become better with your money. Every month you have this opportunity to create a budget in order to make it count. Budgeting not only teaches you how to manage your money but it also provides control over it.
It also helps you to achieve your financial goals. Budgeting is a good habit you should adopt. But for Budgeting like a pro, you should be avoiding These 10 worst budgeting mistakes.
2. Have An Emergency Fund
Life never comes with a guarantee of only good things to happen. It comes with both good and bad. We certainly can’t postpone the bad but we can be ready for that.
An emergency could happen with anybody at any time. Be prepared financially for any kind of emergency can boost our morale to tackle down the situation. Save a little amount of money as an emergency fund and it will save you for sure.
3. Pay Your Debt Fast
Nobody likes Debt, we want to get rid of them as quickly as possible. Debts are the biggest obstruct in our financial journey. You can not master your money until you have a huge debt to pay.
Paying Your Debt provides you a lot of financial relief, so it is advisable to pay your debt as soon as possible. You can also check out our article on “10 EASY WAYS TO PAY YOUR DEBT FAST“.
4. Save For Retirement
Having some financial support in your retirement days is very crucial. Retirement planning includes your expenses, emergency savings, medical savings, and more.
If you start saving a small amount of money as your retirement fund each month, I am sure you don’t have to worry about your finance in your old days. You can enjoy your life without worry about the penny.
5. Pay Your Bills on Time
Nobody likes penalties, these are the extra amount of money we have to pay we could have saved. Paying bills from time to time not only saves the money we spend as penalties but also creates a good reputation. It also reduces our financial stress. So next time pay your bill on time and avoid delay.
6. Improve Your Credit/Cibil Score
A good credit score has its own financial perks. Improving your credit score can benefit you immensely from taking loans quickly to pay a lower interest rate on an existed loans.
Maintaining Score anywhere between 750-800 is important to behold your strong financial condition. Check out this “IMPROVE YOUR CREDIT SCORE UPTO 800“.
7. Lower Your Credit Utilization Ratio
Everything in excess is bad, the same goes for using credit cards. Using too much credit card for everything we buy can be disastrous to our finance. It can hike up your credit utilization ratio which in turn lower your credit score.
From higher interest rates to high-security fees. A high credit utilization ratio ( lower credit score) can put you in serious financial trouble. Maintain your Credit utilization ratio well below 30 percent.
8. Avoid Credit Card Mistake
The credit card has its own advantages and disadvantages too. Over-reliance on the credit card can be a bad decision. Credit card mistake includes Maximising its limit, not paying dues on time, make the minimum payment, and so on.
A bad Credit reputation can turn things against you. From a high-interest rate, low credit score to difficulty in getting the loan. Avoid making a common Credit card mistake.
9. Track Your Spending
You can manage anything better if you have the record of the same. This is also true for your spending. Knowing where your money goes or how your expenses are behaving gets you an idea to manage your money better.
It will also help in managing your budget efficiently. It is both important and advisable to keep track of your spending.
10. Invest Your Money
Grow your money as fast as you grow. The reason behind the billionaires to become a billionaire. You can not deny the importance of investment when it comes to master your money. Investing can grow your capital more quickly than anything else. And we all know Warren Buffet.
DON’T SAVE TO SAVE MONEY, SAVE TO INVEST IT.
Start investing today and you will thank me forever. You can start investing at any age with even $100 or less.
11. Create a source of Passive Income
Making money while you are sleeping, sounds goods. Well, that’s what passive income can do it for you. Passive income is the indirect source of income which is certainly one of the pillars of financial success.
Creating multiple streams of income is always be better for yourself and passive income can help you do it. Create a solid source of passive income and it will generate life long cash flow.
You can also check out our article on 20 WAYS TO MAKE PASSIVE INCOME IN 2020.
12. Follow 50/30/20 Rule
I am sure you have heard of the 50/30/20 Budget Rule. It is a simple way of budgeting including all the important things. This can be a great tool for all those who don’t know how to track spending or make a budget. In simple words, it says that a percentage of your after-tax income should be spent as follows.
- 50% – Needs which include utilities, groceries, insurance, etc.
- 30% – Wants which includes shopping, eating out, entertainment
- 20%- Saving which includes emergency funds etc.
13. Prioritize Assets Over Liabilities
You have a choice. Either spend your money on assets that can return you with greater capital or spend on liabilities which only need more and more money.
Giving preference to assets over liabilities could be your best financial decision. Assets not only save you a lot of money you would be spending on liabilities but can also make money in return.
14. Avoid Unnecessary Expenses
If you analyze your budget, you will find that a major proportion of your earned income is going on things that are not even needed or is not necessary.
Things like new shoes every week, party every weekend, chilling out, eating out and the list goes on could weaken your financial condition. Avoid such expenses.
15. Keep Positive Attitude Towards Money
One of the main reasons why people aren’t better with money because they thought of money as a taboo. According to the money is the root cause of evil. And maybe this is the reason why people still prefer that traditional method to earn money.
Such an attitude towards money is absolutely wrong. And this is the time we should keep a positive attitude towards money, only then we can attract money and become better with it.