Well, the year is officially more than halfway over! Can you say that you’ve spent the past seven months—or longer—working on ironing out your funds? If not, don’t worry—you can still get started on these simple things that will help you improve your financial well-being.
- Find assistance. Whether you have a family member who’s a savings whiz or you can turn to an expert, make sure that you ask for help. This is your future, so take the steps you can to make sure that it’s protected.
- Make a standing date with yourself. It’s common for people to avoid stressful routine events like checking their savings or financial planning. Don’t give yourself the room to fall into this trap! Instead, set a standing date with yourself to look at your finances, trends, credit, and investments. You can do this once a week, every two weeks, or once a month. Keeping a strict routine will help you remain on-track and it will give you positive reinforcement to see the extent of your improvements.
- Save automatically. Putting money in a savings fund is easier than you might think! Simply work with your bank to set up a monthly automatic deposit to a savings account and watch it pile up. This is a great option for forgetful people or those who tend to overspend.
- Switch to cash. Statistically, people who use physical currency for their purchasing power tend to exercise more restraint as they’re spending. Instead of using your credit card at the grocery store or mall, use cold hard cash. Thanks to psychology, you’ll make wiser decisions, as you can see just what you’re really spending as opposed to a shadowy amount.
- Map out your budget. Spend a full month documenting your expenses—food, rent or mortgage payments, power, insurance, shopping, etc. Don’t omit anything. Total accuracy will help you improve your financial well-being, as it will give you a more concrete set of numbers. Once you have that information, see what you’re spending the most on and what you could save if you eliminated unnecessary components. You can also use this to try and plan a more ideal budget!
- Set goals. When it comes to making big changes, it’s often sensible to set goals as opposed to just floundering around without knowing exactly what you’re doing. Ask yourself questions like: What are my biggest expenses? What are my biggest liabilities? How much can I afford to save each month? and At my current savings rate, how many years will I have to work to earn my retirement fund? Finding the answers to these topics will help you make priorities and outline your goals.
- Try out an expense-free week. While you may still need to pay bills during this time, go through your calendar and pick the best week to go expense-free. Then, spend the next seven days daring yourself not to spend. Cook the food you have in the pantry and fridge—this also helps you clear out the stuff that you keep forgetting to make—and don’t do any unnecessary store trips or expensive activities. Even if you only do this a few times a year, it will save you quite a bit.
- Rent, don’t buy. While there are some things you might use all year long, there are others that you will only use occasionally. Consider renting power equipment, video games, and cameras. Additionally, this goes two ways! You can also rent out rooms, tech, or vehicles as well to supplement your income.
- Once you have money to grow, go ahead and grow it! Make sure not to skimp on the research before you put your cash into an investment fund. Depending on your age, the amount you invest may change. If you’re older, you will want to be more careful, as you won’t be able to recover so easily. If you’re younger, you may consider more lucrative ways—within reason, of course.
Though it’s not an easy journey, following these ways to improve your financial well-being will ensure your success in the long-run. Worrying about low savings can cause undue stress and cut your retirement short. Luckily, you have the power to right your course.
If you want to grow your savings, money-protected, call our reliable Ty J. Young Inc. advisors at 877-912-1919. Continue to follow our Retirement You Earned Blog or more advice and savings tips.