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Getting all your banking and investing details together can be a complex, but sometimes even the most tech-savvy among us can struggle keeping track of our finances. We get overwhelmed by the number of new accounts we have opened, and sometimes it’s hard to know how much is actually in our account.
If that sounds familiar, try out one or more of these five tips for managing your personal finances:
1. Build an emergency fund
The best way to build a strong emergency fund is through monthly contributions from every paycheck. The goal should always be to save 1-2 months worth of income in case something goes wrong with your current spending. If you need more funding than that initial savings amount, consider adding small investments such as bonds, mutual funds, certificates of deposit (CDs), insurance policies, real estate, or other investments that pay dividends.
2. Track expenses
In addition to putting away money for emergencies and other situations, it’s also important to track your spending in order to see where the funds are going. That way, you can quickly identify areas of savings and spending that aren’t working well and adjust accordingly.
3. Make smart cash movement decisions
Cash management can mean paying bills on time, avoiding impulse purchases, setting aside money for emergencies, and tracking every dollar you use to make a purchase. As long as you’re making smart choices for everything else, you’ll be able to free up money for any future goals.
4. Use a budget system
Managing your bills can feel overwhelming if you’re just starting out—especially if you have multiple expenses on different budgets. A budgeting system can help you stay organized by allowing you to split up spending into categories, which will allow each category to have its own space in your bank account. This makes it easier to create a realistic overview for spending and saving goals. Additionally, having a budget helps organize your expenditures so you don’t end up overspending or underspending.
5. Be mindful of inflation
Inflation can hit anyone anywhere at any time: whether you are waiting tables and waitresses, living near an airport as you board the plane, or working for someone who drives a luxury SUV and spends large amounts of money on gas. Although it may seem impossible, there are ways to beat this phenomenon—and keep your finances in shape as a result!
If you don’t have the budgeting skills or experience to figure out what has been happening to your spending, there are several tools and apps designed to help you manage your money. Some include Mint, Myntra, Zoho, PayLater, PayPal, and Venmo. Start investing with TIAA and earn 0% APY. Learn More
Keeping track of your finances isn’t easy, but it’s essential. With a little effort, you can learn how to spend effectively and live within your means. Take time to find out what works the best for you and see how you can continue implementing those tips. With plenty more resources available to assist you throughout this process, do not hesitate to contact Pivotpoint Bank for assistance if you need to manage your finances. Here’s how to manage your finances with Pivotpoint.
Additional Resources
Get a jumpstart on creating your personal finance plan by downloading our FREE webinar. It includes key steps to setting goals, getting taxes done, creating an actionable plan, understanding risk and reward curves, and how to develop a solid investment strategy. Watch Now
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