How to Be Smart with Money

https://youtu.be/2PycB51YIeYhttps://youtu.be/2PycB51YIeY

Becoming a smart person with your money doesn’t necessarily have to involve with having a high-risk investments or having over thousands of dollars at the bank. Needless to say, no matter how your current situation is, in life you can be more financially savvy with your money in your everyday life. in this case, you may want to Start by building up a budget to help you to stay within, your means and then, be sure to prioritize your financial goals. With that being said, Then, you can work on paying down your debt, and then, building up your savings, and making better spending decisions. then, in this video, I am going to be showing, you How to Be Smart, with your Money, now let’s begin.

1. | planning to Set up your financial goals with your money.

When you are Understanding what exactly that you are working towards with the money that you have then, it will definitely help you to build up your budget. In this case, in other for you to meet your needs with your money. If you are thinking about it and you are now saying to yourself, do I really want to pay off all the debt? Or is it about your saving for a major purchase That you really need? or it can be that you Are just looking to be more financially stable? With your money by Identifying your top priorities so that you can build up your budget to fit them.

• For example, you might set a goal to save 10% of your income.

• For a more aggressive savings goal, go for the 80-20 rule, where you save 20% of your income.

#2. | Always preparing to look forward at your overall monthly income.

By Having, a smart budget is one that do not actually overextend your means on the money that you have. In this case, you can simply Start by calculating your total monthly income that you already have. Including not just the money that you are making from your working environment but it can be any cash you get from the things that you are doing for example, like your side-hustles, or an alimony, or even child support. In this case, if you are sharing expenses with your partner, that actually leave with you then, you may want to calculate your combined income in other for you to figure out a household budget.

• Then, you should aim to have your overall monthly spending not exceed what you bring in. Emergencies and unforeseen occasions happen, but try to set a goal of not using your credit card to cover non-necessary items when your bank balances are low.

#3. | Calculating and then paying up your expenses fast as possible.

If you really want, to build up a better budget then, your first priority to build up a better budget should be those things that need to always be paid every month right away. By even Paying these expenses every month should always be your very first priority, as these items that is on the list are not only necessary for daily activities however, if you do not pay them the right month or time then this could also damage your credit if you fail to pay them in full and on time.

• For instance, such as your expenses may include your mortgage or even you rent, as well as your utilities, or even your car payments, and even your credit card payments, as well as the things like your groceries, and including your gas, and insurance.

• Set up your bills on autopay to make them easy to prioritize. This way the money comes out of your account on the day the bill is due. Set up autopay only if you’re sure you’ll have enough money each month to pay those bills in full.

#4. | Adding the Factors, in your non-essential expenses for your budget.

When you are building a Budget then, having a budget works best when they are reflecting on your daily lifestyle. By Taking a good look at your regular, non-essential expenses, that you have and then, building them into your budget so that you can anticipate your spending, Right away. for example, if you always getting a coffee every morning when you just wake up while you are getting ready on the way to work, for example, you can throw that into your budget.

#5. | Looking towards other places for you to make cuts.

While you are Creating a budget then, this will definitely help you to identify the things the you can absolutely cut out from your regular expenses that you are having and then, rolling into your savings or debt payments. Including when you are Investing in a good coffee pot and even a mug, as well for example, you can actually try to at list help yourself, save up on your morning fix for years to come.

• In this case, be sure to not forget about your longer-term expenses. While you are Checking things like insurance policies, and see if there are places you can scale back. If you are paying for collision and comprehensive insurance on an old car, for example, you may opt to scale back to liability insurance only.

#6. | Tracking what exactly, you are spending every month.

Whenever, you are building up a budget then, it can definitely Help you as a guideline for your overall spending habits, whenever, you are spending, your money. In this case, then, your actual spending, will vary to each month, in this way this is only depending upon your personal needs on whatever that you feel like you need really bad. On the other hand, whenever, you are Tracking your spending by using an expenses, of your journal, and including a spreadsheet, or even a budgeting app, that you always love to use can actually help you to ensure that you are staying within your means each month.

• If you do exceed your budget goals, don’t beat yourself up. Use the opportunity to see if you need to revise your budget to include new expenses. Remind yourself that getting off-target happens to everyone occasionally and that you can still get to where you want to be.

#7. | Working to words Building up on some savings into your budget for a more and better calculative deal with your budget.

In this case, exactly how much money that you are willing to save will depend upon the type of job. that you have in this way, your personal expenses, and even having an   individual financial goals in the money that you are budgeting. by Aiming to save some cash each month, however, whether it’s $55 or $591. Then in this case, by Keeping that money that you have in a savings account in this case, be sure to separate it from your primary bank account so that it not accidentally gets spent on something that you want or need to have.

• Also your savings should be separated from your 401(k) or any other investments that you have actually trying your best towards. Building up a small general-savings balance can actually, help you in other to protect yourself financially if an emergency ever comes up, without you knowing, unpredictably, such as a major repair on the house or unexpectedly losing your job by accident.

• Many financial experts recommend a target savings of six months’ worth of expenses. If you have a lot of debt you need to pay down, aim for a partial emergency fund of two months’ expenses. Then focus the rest of your cash on your debt.

#8. | Figuring out how much money that you actually owe, and then, be sure to Prioritize having a high-interest debt.

If you are starting to have some debt coming in. then, it is best for you to at list, understand how much money that you owe and then, it is best to pay down your debt, in this case, by Adding together all your debts, and even paying it all down including credit cards, and even having a short-term loan, or a student loan, and any mortgages or auto financing you have in your name. then be sure to Look at your total debt numbers in other for you to help you to understand how much you owe and how long it will realistically take to pay it off.

• When your high-interest debts are starting to build up for example, like your credit cards tend to have higher interest rates or it can be things like having to deal with a student loans. in other words, the longer that you carrying a balance on a high-interest debt, then, the more you will ultimately pay up on. Prioritize on a paying down of a highest-interest debt that you have at first, in this case, by making a minimum payment on the other debts and then by adding extra money into your top debt priorities.

• If you have a short-term loan (a car loan, for example), pay that down, too, as quickly as possible. Such loans can become very expensive if not paid off in full and on time.

#9. | You should start by Go straight from paying off your highest-interest debt into paying off your next-highest-interest debt that you have owe on your card.

Whenever, you are paying off a credit card that is in your wallet balance, then, in this way, be sure to not roll that payment amount back into your discretionary funds. Instead, what you need to do is roll the amount you were paying into your next debt. That you have

• In other words, what I am saying to you is for instance, if you finish paying off a credit card, that you have by taking the amount that you are putting toward your credit card and then, adding it into the minimum payment you’ve been making on another card or a student loan.

• The point is that you want to eliminate all recurring, long- and short-term debt as soon as possible so that you can live interest-free.

#10. | Setting up a saving goal, and separating your savings in a different account at the bank.

Saving towards something that you want, or even need, can tend to be easier when you know what exactly that you are saving for. by even, setting up a goal, such as trying to build up an emergency fund, including while you are saving in other for you to have a down payment, in this case, while you are saving for a major household purchase, or building a retirement fund. If your bank will let you, you can even give your account a nickname such as “Vacation Fund” to help remind you of what you’re working toward.

• Building A new savings account is generally the easiest way to add your money in a savings account if you are new to this and you are just starting out or. If you have already have a solid emergency fund and then, you have a reasonable amount in your bank account then, you may want to invest, your money such as over $1,000, in this case, you will want to consider having something like a certificate of deposit (CD). Having CDs can definitely can make your money much more harder to get it out of a fixed period of time but can ultimately tend to pay you a higher interest rate at the bank.

• By even Keeping up your savings in a separate from a checking account that you have can actually make it more less likely that you’ll spend your savings. And in this case, while you have a Savings accounts can also tend to pay a slightly higher interest rate than having a checking accounts.

• Many banks will allow you to set up an automatic transfer between your checking and savings accounts. Set up a monthly transfer from your checking to your savings, even if it’s just for a small amount. That’s a relatively painless way to build your savings.

#11. | Try to Invest your money on a raises, and bonuses, and. Adding any additional income into your savings account.

If you ever get a new raise, or a bonus, maybe it can be a tax refund, or it can be having an unexpected windfall, by putting your money in your savings or if you are someone that already have one, then, you can put your money in your retirement account. In this case, this will be an easy way for you to help boost your account without compromising your current budget that you already have.

• If you get a raise, invest the difference between your budgeted salary and your new salary directly into your savings. Since you already have a plan to live off your old salary, you can use the new influx of cash to build your savings.

• If you are someone that does work, a side gig or it can be that you have any extra sources, of income, that you want to build up, on like a budget based, on your primary sources, of your different income, and then, be sure to dedicate your other earnings that you have make into your savings or retirement account. This will help grow your savings faster while making your budget more comfortable.

#12. | Prioritize your savings towards, fixing your needs up and Shopping around the area.

You can simply Start by having each one of your budget period by paying for your needs right away. This would also include anything that you have rent or it can even be your mortgage, including your utility bills, and your insurance, and gas, groceries, recurring medical expenses, and any other expenses you may have. Do not put any money toward non-essential expenses until all of your necessary living costs have been paid.

• Shopping can be very easy. to get in the addictive habit of just shopping in the same place repeatedly, over and over again. but to even taking, the time to shop around can actually help you, to find out the best deals that you need. By even Checking a local stores a super market and even an online store by taking a look for the best prices for your needs. By even Looking for the stores that might be running for sales or that specialize in discount or surplus merchandise.

• Bulk stores can be useful for buying things you use a lot or things that don’t expire, such as cleaning supplies.

#13. | Buying some clothes and shoes out-of-the-season, and Try to always Use your cash, instead, of your credit card, and please try your best to always monitor your spending on what you are shopping for.

By upgrading to a brand New styles of clothing, and even having some new shoes, on your feet and even, adding a new accessory generally come out of a seasonally. Shopping spring out-of-season will also help you in other for you to find a better price on fashion items. Shopping online is particularly useful for out-of-season clothes, as not all stores will have non-seasonal items.

• In this case, for having a non-necessary, expenses such as going out in town, or in the city, just to eat something, or it can be seeing a movie, at the cinema in this way, while you are setting up a budget. while you are Withdrawing the necessary amount of cash before you even go out, and leave your credit card. or I will say your wallet, at home. Alternatively, this will make it more difficult to overspend or impulse buy while you’re out.

• Ultimately, as long as you’re not over spending a lot of your money on other things or stuff more than you are bringing in more extra cash, while you are on the target. Regularly by monitoring the things on whatever, it is that you are spending on or in whatever way works best for you. You may prefer to check your bank account every day, or you could sign up for a money-monitoring app such as Mint, Dollarbird, or BillGuard to help you track your spending.

Hey thank you for watching The Paths In Life be sure to Subscribe, for more life topics on. the Paths In Life.