Achieving financial success is not just about having a job that pays well, not being knee-deep in debt, and being able to set aside some cash every payday. If you’ve mastered the art of controlling your spending habit, then you’re already on the right path. But of course, there’s more to it than that.
CNN Soapbox Laundry Shop aims to not only provide you with the most satisfying laundry experience, but also help you get closer to your financial goals. So I’ve put together four tips that might just change the way you think about money.
Tips for Taking Better Control of Your Finances
1. Be one step ahead of your accounts.
Take at least one minute a day to look at your accounts so you’ll always know how they’re doing. You’ll also find out how you’re faring in terms of budgeting. Doing this is a must if you’re planning on making a big investment in the near future.
There are plenty of personal finance apps you can use to check your accounts online. If you put their icon next to apps you habitually use, such as social media, you’ll have a daily reminder to always stay ahead of your finances.
2. Keep in mind that not all debt is bad.
Did you know that there is such a thing as good debt? Good debt refers to debt that’s paid off in exchange for an asset. Essentially, you are paying for something useful that will continue to gain value over time.
Student loans and mortgage payments are two good examples of good debt. On the other hand, credit card debt is considered bad since it is not tied to any asset.
3. Separate your personal and billing accounts.
Make your email and banking accounts more conducive to thriftiness by keeping personal and billing separate. Consider creating a new email account dedicated to bills as well as a bank account exclusively for major expenses.
Having a separate account in which you deposit money on a regular basis will not just simplify your finances. It will also train you to save consistently and keep your savings off-limits. On the other hand, you’re more likely to spend the money you save in your checking or savings accounts.
Basically, creating a separate account builds a barrier between your expenses and savings.
4. When unsure, ask questions.
Don’t be afraid to acknowledge what you don’t know. Unless you’re an expert with years of experience in the field of finance, you shouldn’t be hesitant to reach out to more qualified friends, relatives and coworkers for assistance.
If nobody in your circles can help, don’t worry.
It’s so easy to find third-party experts who will gladly guide you to make healthy financial decisions. For example, if you’re looking to take out a loan, one quick search online will point you to local professionals who are ready to use the best financial tools to help you.
Hopefully, taking these steps will help you gain better control of your finances and eventually achieve your short and long-term goals.
This article was written by Kash Avena of loansolutions.ph.