What Have You Done Best to Get Your Finances in Order?
Most of us could manage our money better. This is not meant to shame or blame anyone – it’s just a fact. Every day there are so many temptations, so many different financial products beckon us and so little money for turnover. Managing what we have effectively is often challenging.
If you didn’t learn about personal finance as a young man, getting a student loan may be the first time you are faced with the complexities of financial products and interest rates. Or perhaps you were tempted to get a store credit card from a convincing clerk, not realizing that the card’s astronomical annual interest rate would quickly surpass the extra 50 percent you received on purchase when you opened it. Maybe you got your first paycheck and realized that all this was really happening .
The most effective way to get your money in order is to be brutal and consistently honest with yourself. Previously, I avoided looking at my checking account balance, believing that if I didn’t know, I could just get on with my life and not worry about ever-decreasing funds. After reaching almost $ 0 (or below) a few times, I now receive my balances daily, so I need to see them. I also get paper credit card statements every month, so I have physical records of what I spend my money on. I don’t sign up to anything without doing a fair amount of research (and getting a second opinion), and I practically avoid advice from financial personalities.
I also remind myself quite often that in the future I will be much better if I save money now (of course, it helps that I write about money, and started writing about it right after school, so that asserts itself). As for practical advice, as I wrote here, automation works wonders for me . In the same way that I distrust monetary individuals, I also know myself well enough to know that I will not constantly save money or make all the right decisions all the time. Automation is taking some of these solutions out of my hands.
And you? What did you do best or read the book to get your finances in order? Leave your tips and tricks in the comments.