According to a recent report on Very Well Mind, money was the No. 1 cause of stress for Americans – beating out work or personal relationships.
But getting your personal finances in order doesn’t have to be stressful. Check out the tips below on how to prioritize personal finances, start saving more, and put yourself on a path to better money management.
Adjust your mindset
Often, saving money falls to the wayside because people focus primarily on bills owed each month, such as housing, cars, food, and utilities. With those pressing financial obligations, putting money away is easy to neglect – but it’s all about mindset. Think of saving as a personal investment. In other words, pay yourself first, then budget the rest for bills and fun. Most employers allow you to directly deposit your paycheck into different accounts, meaning you can save as much as you choose each pay period.
Small steps can lead to big improvements when you put your personal finances in order. First, look at the budget and put any goals in writing. Create an itemized list such as dining, entertainment, and car insurance, but also include yourself. By tracking where the largest amount of money goes, we can pinpoint small ways to cut back. Even putting aside $5 a month for yourself will add up over time.
See the bigger picture
Setting a budget makes it easier to see the bigger personal finances picture. Technology simplifies the old-school ledger that was filed away under lock and key at home. Now it takes only a few taps on a smartphone to directly connect with our banking information. Accessing important records can be done from anywhere… right in the palm of our hands.
Celebrate the milestones
It’s important to recognize an accomplished goal, especially when beginning to adjust spending and saving habits. Taking a moment to acknowledge those financial wins is encouraging and motivating to keep going.