Managing your money should be easy by now, if you use the 50-20-30 rule and have watched our inspiring financial TED talk, you should be alright. But you know sometimes you don’t even know where to start…
This will save you worry!
1. Track your spending
Start by having a look at all your outgoings. What are you spending money on? Are your expenses a bit too high? Be honest with yourself, you might be able to afford those outgoings now but if you’re paying rent or a mortgage would you still be able to? Try to keep the 50-20-30 rule in mind.
2. Calculate your net worth
How much are you or your business (if you have one) worth? Use this calculator to input everything, it’s always good to know!
3. Check your credit score
When you’re young you tend not to think about your credit score at all. But you should check it periodically. Financial advisors say you should check it like you check your bank statements and credit card bills as it’s essential to being financially successful. You can do it online for free, and it’ll give you an indication of how likely you’re going to get a loan from the bank if you need to pay a mortgage.
4. Cut your spending
Easier said than done, but cut your spending for a little while. Bring lunch instead of buying it, update your wardrobe with things you already have instead of buying new items. These little adjustments to your spending habits will add up, and could mean you have more to put aside for savings.
5. Think about retirement
Ugh, who has time to think about retirement? But you really should. Start putting money aside for your retirement fund and check what your current company offers. It’s actually kind of depressing but if you don’t start saving you could end up in a bit of a mess – as we learned from the founder of LearnVest.