If you don't know how to manage money, you'll never be truly wealthy.
Here are 5 money management methods everyone should know:
Here are 5 money management methods everyone should know:
1. Budgeting
Budgets help you figure out where your money is going.
To create a budget, track every cent:
• How you made it
• How you spend it
Then categorize your spending as:
• Needs
• Wants
• Wishes
Spend on your needs and save/invest the rest.
Budgets help you figure out where your money is going.
To create a budget, track every cent:
• How you made it
• How you spend it
Then categorize your spending as:
• Needs
• Wants
• Wishes
Spend on your needs and save/invest the rest.
Free resource:
This budget spreadsheet will help you track where your money is coming from, and where it is going.
Click here to get it for free: themillennialmoneywoman.com
This budget spreadsheet will help you track where your money is coming from, and where it is going.
Click here to get it for free: themillennialmoneywoman.com
2. Calculating Your Net Worth
Net worth = Assets - Liabilities
• Assets = what you OWN
• Liabilities = what you OWE
When you know your current net worth, you can navigate much easier to your goals.
Net worth = Assets - Liabilities
• Assets = what you OWN
• Liabilities = what you OWE
When you know your current net worth, you can navigate much easier to your goals.
3. Avoiding Bad Debt
Credit card debt:
• Increases your stress
• Lowers your credit score
• Decreases your cash flow
If you can't pay off your credit in full every month, you can't afford your lifestyle.
Credit card debt:
• Increases your stress
• Lowers your credit score
• Decreases your cash flow
If you can't pay off your credit in full every month, you can't afford your lifestyle.
4. Building an Emergency Fund
63% of Americans cannot afford a $500 emergency.
That means the average American would have to resort to high-interest credit card debt to pay for surprise expenses.
Do your future self a favor and save 3 to 6 months' worth of living expenses.
63% of Americans cannot afford a $500 emergency.
That means the average American would have to resort to high-interest credit card debt to pay for surprise expenses.
Do your future self a favor and save 3 to 6 months' worth of living expenses.
5. Tracking Your Money
Assign a purpose to every dollar.
Some examples:
• Business accounts
• Retirement accounts
• Emergency savings fund
• Joint / Individual accounts
Want to be like the pros?
Automate the process.
Assign a purpose to every dollar.
Some examples:
• Business accounts
• Retirement accounts
• Emergency savings fund
• Joint / Individual accounts
Want to be like the pros?
Automate the process.
Thanks for reading!
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I write an email to 30,000+ subscribers every Saturday where I share the secrets to creating modern wealth.
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