In this post, you will discover five smart money making moves to increase your financial well-being
Smart money moves can increase your financial well-being.
1. Create a monthly budget and stick to it
The first step to improving your financial situation is knowing exactly what your financial situation is by creating a monthly budget that details your income and expenses. That way you can identify how much money is flowing out compared to what comes in, and most importantly where your money is actually going. Once you have set up your budget and are tracking it, you can easily find areas where you can cut back and can start saving money.
2. Build an emergency fund
After you have created your budget and are starting to put money aside, it’s important that you take a part of your savings and put them into an emergency fund. The size of your emergency fund is really up to and can range from as little as $1,000 to three months of your salary. Your emergency fund is there in case unexpected expenses such as home repairs, car repairs or medical bills occur.
3. Pay off highest interest bearing debt first
If you have a range of different debts to pay off, start by paying off the highest interest bearing debt first as that is the fastest way mathematically to pay off your debts. This is because your highest interest bearing debts will incur the highest interest costs over time. So the sooner you pay those off, the cheaper it will be to pay off all your debts over time.
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4. Always shop around for the best deal
Another great way to improve your financial situation is by saving money on your weekly shopping and putting that money aside. You can use grocery comparison sites such as grocerycop.aom.au or use the mobile comparison app, Trolley Saver, to find the best deals on the items you buy every week. That will help you reduce your monthly expenses and will allow you to put money aside to invest.
5. Invest for the future
One of the most important steps you can take to improve your financial situation long-term is to start investing. Whether you buy a portfolio of stocks, place your money in savings bonds or purchase your first property, investing is how individuals build wealth and create financial freedom over time.