Being “good” with money seems to be something that you either are, or you aren’t. Some people spend frivolously without a second thought, while others are meticulous in their planning and execution of their financial decisions. Whichever camp you fall into, there are always ways to improve your attitude and actions when it comes to cash.
If you struggle with organizing your finances or you want to start thinking big-picture, here are four ways to be more organized with your money in 2021!
Get Into Neo-Banking
Neo-banks, such as MonZo or Revolut, are great ways to organize your money better. Not only are these easy to access from your mobile phone, but these banks have ‘pot’ functions into which you can save money for a specific purpose.
For example, if you are saving up for a big purchase like a car or a house, you can simply name the pot after the thing you’re saving for, then put money into it whenever you can. This will help to motivate you to save up for the things you want while providing a simple way to designate funds for a specific purpose.
If you are interested in neo-banking, or perhaps if you’re skeptical about the whole thing, you can find out more by researching neo-banks for yourself.
Anyone can invest their money, no matter what kind of budget you have. Even if you invest $5 per week in something, you will still see returns on this in the long term. Remember that financial organization is often about spending small amounts of money to see long term returns, rather than constantly keeping your cash under wraps.
Here are a few ways to make wise investments to better your financial organization in the long term.
Trade on the stock market. This requires a little research and some practice before you can make any serious money, but many people supplement their income this way over long periods of time. While you may hear about the benefits of the S & P 500 or how well Bitcoin is doing right now, research is crucial to understanding how you can make the most of this type of stock. There are many different options, so you can invest as much as you are comfortable with, but you have to learn how much risk there is in a certain project. This is why some people prefer to day trade, as they can dip in and out of the market during one day. Remember, you should never trade more than you can stand to lose, so don’t go throwing half your income into the stock market just yet.
Invest in property. One way of organizing your money for positive returns is by diversifying your portfolio. Investing in property is a great way to inject some of your cash into assets, making it more secure and tying up your money in something concrete. Plus, you can reap rewards if you invest carefully.
Go Back To Basics
Sometimes the basics are the best. Here are a couple of basic steps to help you be more organized with your money in 2021!
Making a spreadsheet of your income and expenditures will help you to focus on what you can cut down on, creating a tighter budget and saving yourself money this year.
Go back to using checks. Checks, available to buy at cheapochecks.com, are a great way of keeping a physical record of big expenditures that you can easily file away.
Use cash. A weekly budget of cash withdrawn from your bank account allows you to keep track very easily of what you are spending. Sometimes it is easy to overspend if you are just swiping your card every time; it’s easier to keep track with physical money.
Make Long-Term Plans
One way to help yourself be more financially motivated is by making long-term plans. If you assess your income and prospective income for the next five-to-ten years, you can begin to figure out the next steps you could take to diversify your assets and achieve your goals.
These goals could be to own your own home, start a business, pay off your student debt or become totally debt-free in the next five or ten years. These goals sound simple, but they are difficult to achieve without financial motivation and organization. You have to stay on target every single day to make serious improvements to your financial situation.
If you are interested in making long term financial plans, meet with your accountant or a financial advisor who can assess your situation and provide insights. By working with a professional on these goals of yours, you can begin to make solid, practical steps towards achieving them. Plus, you’ll avoid making mistakes when it comes to investing or saving money.
Being better with money takes discipline, but anyone can achieve it, no matter whether you are naturally talented with money or not. Use this guide as a starting point to help you propel your financial organization into a brighter future!