Reading Time: 3 minutes 4 Ways To Remain In Good Financial Standing
This is a contributed article on personal finance from Ellie Jo.
Your personal finances are an important aspect of your life. You’ll be happier and less stressed out when you practice good spending habits and save your money.
There are some steps you can take to help you remain in good financial standing so that you feel good about your financial situation and can live comfortably. You’ll discover that your life and outlook are better when you pay attention to your finances and don’t let the situation get out of control.
1. Adhere to A Budget
One way to remain in good financial standing and improve your finances is to adhere to a budget. Making a monthly budget will help you map out your finances in detail so you know what you’re working with.
The process of making a budget will force you to stop and analyze your finances and situation. Be sure to include all income and expenses so you know how much money you need to live each month and how much extra you have. Follow your budget closely but then be willing to adjust it and review it as your situation changes.
2. Pay Your Bills on Time
Always pay your bills on time if you want to remain in good financial standing. This includes not only paying your bills and expenses off but also paying your taxes. If for any reason you’ve fallen behind with this then you should contact a tax attorney who can review your situation and come up with a plan of action.
It might help to set up automatic payments or reminders on your phone so that you don’t fall behind and stay on schedule. Paying your bills on time will also benefit your credit score so it’s important for several reasons.
3. Put an End to Overspending
Spending more than you have will get you into financial trouble in the long run. You must spend within your means and avoid racking up credit card debt. You might want to consider saving up and paying cash so that you can avoid financial hardship.
Put an end to overspending by thinking through large purchases before you hand over any money. You may come to realize that you don’t need some items or that they’re outside your budget and can therefore shop around for a more reasonable deal.
It’s even more challenging these days to spend modestly since it’s so easy to shop online and get what you want almost instantly. You must have self-control and self-discipline if you’re going to succeed in this area.
4. Have an Emergency Fund Ready
Build an emergency fund if you want to remain in good financial standing. You must be able to afford to pay unexpected expenses and live comfortably if anything should occur such as you losing your job.
You want to avoid having to dig into your retirement savings or increasing your credit card debt. Instead, you should have access to a cash reserve that you can get to and use if you find yourself in a sticky situation. It’ll ease your stress and make sure that you don’t have to experience a financial setback and start over from scratch.
Greg is a Chartered Financial Analyst (CFA) with 22+ years experience in Financial Services. He has held numerous FINRA Securities licenses (series 7, 63, 65, and 66), and is an expert on Investment Products and Financial Planning. Greg has 22+ years experience as a real estate investor and degrees in Psychology and Philosophy.
Greg has been quoted/interviewed in Yahoo Money, Yahoo Finance, USA Today, Authority Magazine, Realtor.com, Business Insider, and others.
Greg is an avid runner, and the father to identical twin girls and their awesome brother. His love of budgeting and his kids led him to join The Great Resignation in 2021.
Disclaimer: Any Financial Tips on ChaChingQueen are general and informational. Speak with a professional about your specific situation.