Smart Money Tips To Help You Get (and Stay) Ahead

If you are like that majority of people, you never really learned solid money management skills. You probably have some credit card debt, and you may be one minor setback away from getting in over your head. Using simple smart money tips can help you get ahead and stay there.

Know the Numbers

It is surprising how many people don't have a realistic picture of how much money they make or spend each month. While keeping finances under a microscope isn't necessarily good for your stress levels, you should have a basic idea of how much money you make each month from all income sources. That means money from your primary job, any side gigs, interest, and investments.

You should also know where that money is going. Keep track of every expense you incur over a set period of at least two weeks. A month is better if you can keep it up. Using a debit card can help with keeping track since you will be able to look at the statement, but it won't break down individual items within larger purchases. Receipts are the gold standard with this strategy since they list each item you buy.

Once you have that information, you can develop a budget that works for your lifestyle. There are some great worksheets available online to help you develop a sound and workable budget. Be sure to include extras like vacations, bills like insurance or HVAC contracts that get paid annually and a savings fund when you perform calculations.

Take On a Side Hustle

Sometimes, when you sit down to look at the numbers, you will notice that you are spending more than you are earning. When there is no room to adjust spending, the only option is to increase income. Second jobs are certainly not a new idea, but they are increasingly flexible. Work from home opportunities can help you fit a side hustle into an already busy schedule. They also offer earning opportunities for stay at home parents to help them avoid the complete loss of extra income that decision carries.

It doesn't matter what field you are in or how much experience you have, there are opportunities available. Use research companies that routinely hire remote workers to find one that might match your availability and skillset. Keep in mind that this doesn't have to be a long-term career. It may just be a necessary stopgap measure to preserve your savings or help you avoid going into debt.

Change Spending Habits

You will need to seriously assess how you spend your money and make some changes to increase financial security. Start packing lunches and eating at home to cut down on entertainment spending. Look at eliminating home phones or cable TV if you don't use them that often. See if anyone at work lives near enough to make carpooling logical to cut back on transportation expenses.

Even if you have discretionary income, there is no reason to pay more for the things you use. Find areas to save by asking for discounts or using coupons. Join free member clubs at stores you visit regularly to get special discounts. Don't assume you are paying the lowest rates for services either. Go online and request insurance quotes for life, auto, and home policies to see if you can save.

Pay Down Your Debt

If you have already accumulated debt, you probably know why avoiding it is so important in the first place. Paying credit card balances off can seem impossible, especially if you are only making the required minimum payments. Call your credit card and loan companies. Explain your situation and see if they are willing to lower your rates or eliminate fees. Every little bit helps, after all, and you might be pleasantly surprised at their answers.

Once you have the best interest rates possible, start paying down your debt. Two popular methods include the debt snowball and avalanche. See if one of those works for you and then put all of your extra resources toward getting rid of those balances.

Changing economic times make learning smart money habits more important than ever. Using common sense and spending less than you earn is the best way to get your finances in order. Using simple strategies to make that happen makes it possible for anyone to achieve financial stability.