Money can be a very sensitive topic for some people. It may even cause several sleepless nights and general restlessness among many. This is why some people avoid the topic of money all together. To them ignorance is bliss and knowledge is hell. This has led to a growing culture of ignoring financial problems until you absolutely have no other option but to face them. Sadly ignoring the problem does not make it go away but only leads to crippling debt and bankruptcy. Good management of your money is therefore a very important endeavor and can cause you less stress and anxiety in your life. There are several habits and skills that can help you improve your money game.
Face Your Reality
To improve your money game you have to stop living in complete denial about your financial situation. You need to face your reality boldly and believe you will be able to deal with whatever comes. After all how hard could it be , managing your finances cannot be rocket science. You have to find out how bad the situation really is so that you can come up with a game plan .it is impossible to solve a problem without knowing its severity . The sooner you know the better chance you have of solving any existing problem before it is too late. You need to figure out if you have any debts you may have forgotten about ,check your credit statements and find out how much you spend monthly on bills and other activities. This can give you an idea of how much of the money you earn gets spent and how much gets saved. This goes a long way in improving your money game. You can even hire an expert to check your bank statements , credit statements and other financial documents and give you and explain to you how bad the situation is and what solutions can be implemented.
In order to get your money game right it is paramount you have the necessary financial education . You cannot expect to keep living in ignorance and miraculously get better at managing your money. You can read books about money or you can visit websites that have insightful articles about. The internet is a vast source of information .An example of a helpful website is Financial Highway.com .You can also get information from people who are experts in money for example your insurance provider can provide you more information about the different insurance policies so that you can be able to make an informed decision about which policy to choose. No matter which source of information you choose the information will help you greatly on your journey to getting your money game right.
Find A Starting Point
It is said a journey of a thousand miles starts with one step. The same rule applies to money management .It may be difficult to start but once you make the first step it becomes easier .This is why it is very important to establish a starting point . You can start by creating a budget .There are several applications which can help you do so or you can do it manually using a spreadsheet or a pen and paper. This helps you to keep track of your spending and enables you to reduce your spending on non essential things like unnecessary vacations and book subscriptions . Creating a budget improves your money game in several ways;
- Since budgets track and regulate your spending they reduce the possibility of you acquiring debt.
- Budgets reduce the possibility of you being caught off guard by unexpected costs
- People with budgets tend to have higher credit rating since they can account for their money and pay their credit bills early
You also need to pay your bills on time and if you keep forgetting the due date of certain bills it is advisable to create a bills calendar to help you remember. Also pay your credit debts and loans or develop a plan to do so. Credit debt leads to low credit ratings leading to lower chances of you getting credit at a better rate. As for loans the longer you take in paying them , the more interest they acquire leading you deeper and deeper into debt. Another way to improve your money game is to set a savings goal. This helps you save for a rainy day , for your retirement or for your child’s education. This provides some financial security for the future. Your money game can also be improved by choosing an appropriate insurance policy. This is a policy which you can comfortably afford and provides you with appropriate level of protection. You must also ensure that you are using a legitimate financial institution to manage your money and you should research on the fees of any given institution before trusting it with the managing of your money.
[Read: Deal With The Stress Of Money]
You can learn more about getting your money game right from watching this video: