Let’s be honest here. Many families across America are struggling financially for many reasons. The cost of living where they live is either too high or they don’t bring home enough money. How are both of these related? They both have to do with money inflow and money outflow. When you can control both of these, you will never have a money problem. However, there are much more basic ways of managing finances that I am going to be covering in this article. All of these tips you will be able to apply to your family’s finances.
1. Create a written budget
Financial guru Dave Ramsey preaches this over and over again because it is so true! Families that create a written budget at the beginning of the month tend to perform better financially. Why? Because they are controlling their money. They know where every dollar is going at the beginning of every month. They are on point with their finances, a goal you and your family should have. If you are having financial problems in your household, sit down at the beginning of every month with them and figure out the mess. Find out if you are spending too much or earning too little. For most of us, the first one is the problem. Do this so that you can take control of your finances and your life!
2. Increase Income
The problem with only creating a budget is that you can only cut the bottom line so much. In other words, you can only cut expenses and save so much of your money. The good news is that you can create as much income as you want. When starting out, 90% of your attention should be on creating more flows of income and 10% of your attention should be on saving your income. When you have enough money, a crisis then becomes an inconvenience. In other words, you won’t be super stressed out if you get in a car wreck, if your child needs to go to the hospital, or if you need a new washer and dryer. Whatever the case may be, money fixes a lot of these problems. To increase your income, focus on obtaining a valuable skill that can be exchanged in the marketplace. This can be coding, writing, editing video, photography, and so on. You could also start a side hustle, start a small business with limited capital, or even get another job to help pay off some things. In the end, the opportunities are endless.
3. Save at least 15% of your income
A very scare statistic in America is that not many people have over $1,000 set aside for retirement and it is getting even worse by the year. Another troubling statistic is that Social Security won’t be able to support our generation when we reach the age of retirement. Pensions are also disappearing year by year. This is why you must make it a priority to save at least 15% of your income and invest it early. The sooner you invest, the more time you will give your money the chance to compound. Once retirement comes along, you will have a pretty big nest egg. I’d recommend putting your money into a Roth IRA or a 401k. You can also use Mount Pleasant title loans to help your finances.