4 Ways To Be Better Organized With Your Money In 2021

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!

1. 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. 

2. Invest Wisely

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.

3. 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.

4. 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.

Final Thoughts

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!

Finding Room For Luxuries Without Breaking Your Budget

 When people hear the word budget, they think it means cutting out everything fun that you normally spend money on. If you’re in a really tight spot and you need to turn your financial situation around, you might need to come up with a drastic budget that cuts out all of your luxuries. 

However, the average budget should still have room for luxuries in it, but a lot of people struggle to find a place for them. What usually happens is that people go over budget because they still want to enjoy small luxuries. If you want to avoid that, try these simple tips to fit more luxuries into your budget. 

Budget for Small Luxuries

This might sound like it doesn’t really make sense because, when you are creating your budget, you differentiate between luxuries and essentials. However, everybody needs some small luxuries in their life, so you need to make room for them in your budget. Instead of removing all luxuries from your budget and then trying to find extra cash each month for things you want to buy, you should set aside a small amount for luxuries. That way, you don’t feel guilty about going over budget every time you want to treat yourself. 

Look For Deals And Offers 

If there is a luxury item that you want and it doesn’t fit within your budget, look for deals and offers. There are some great sites like Checkout Saver that will automatically search for coupon codes and discount cards when you shop online. Instead of buying things straight away, why not wait a while and see if they go on sale? You don’t need to buy luxury items straight away and you’ll waste a lot of money if you buy things on impulse. But if you can learn to be patient and search around for deals and offers, you will ultimately find it easier to fit luxuries into your budget.

Buy Things Second Hand 

Buying things second hand is one of the easiest ways to get luxury items without the big price tag, but a lot of people don’t consider it. Second-hand doesn’t mean buying things that are years old and most items dip in value a lot after just a few years. If you’re looking for a new phone, for example, there are some great refurbished ones that are just a year or two old and they’ll be far cheaper. You can get a lot of second-hand designer clothes online too, so as long as you’re not obsessed with fashion trends, you can get some great stuff for a fraction of the price. Next time you want to buy anything, check whether you can get it second hand or not. 

Find Savings Elsewhere In Your Budget 

Sometimes, there are big luxury items that simply don’t fit within your budget, so what can you do? Going over budget is one option but if you want to stay in control of your finances, you should find savings elsewhere in your budget and set that money aside for a few months. That way, you can still buy luxuries without messing up your budget. You could look for ways to manage your grocery budget, for example, or find ways to cut back on your energy use at home. This is a great strategy because you will initially make cutbacks so you can afford more luxuries, but if you continue with those new spending habits, you’ll have more money in the long term. 

Look For Alternative Brands 

People struggle to fit luxuries into their budget because they always buy branded items that are way more expensive. The thing is, you can usually find alternative brands that are a lot cheaper, even though the quality is just the same. In most cases, you are just paying for the brand name rather than the quality of the product. However, some brands do sell quality and there is a benefit to spending more money on things that last. So, find a middle ground and avoid the cheap brands while also finding more affordable alternatives to the high-end luxury brands. 

Are you terrified of the word budget because you think that it means draining all of the fun from your life? This is the reason that a lot of people avoid budgeting in the first place because they think that it means they can never enjoy any luxuries. But it doesn’t have to be that way because, if you follow these steps, you can fit luxuries into your budget. 

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Things to consider before investing in a foreign property

Real estate is one of the most common investments, for the very simple reason that it is incredibly lucrative. Perhaps you've already got a home, or you are considering investing in another property to rent out. But you may be also looking at venturing further overseas. Many people invest in property overseas, and it can be incredibly lucrative, especially when it's in the desired location as long as you can afford it so make sure you have checked a mortgage calculator based on your income for where you are looking to buy, this makes sure you understand the costs this is going to have for you. But some people hear horror stories about a property not being finished in time, or the builders causing problems, ultimately resulting in investors losing thousands of dollars. So before you sell your home or expand your portfolio, what does it take to invest wisely in a property overseas?

Really Think About the Right Location

The temptation from an investor’s perspective would be to find a market that is up-and-coming, and cheap. But this could very well fall flat on its face. Because, after all, you are relying on the rumor more than anything. It is far better to go for an established market, especially when you are a first-time investor. When you see a house for sale in another country, take the time to see if it is an established location. Mortgage providers will look more favorably on properties in areas with a proven rental market. As nice as it is to be investing in a property, based in a beautiful location, it's got to be a sure thing, investment-wise.

Remember the Taxes and Exchange Rates

As romantic a notion as investing abroad is, you must consider the different tax rules to each country. It's vital to get to grips with each country's tax rules before you purchase anything. Countries have their own additional taxes, sometimes known as Stamp Duty. If you are using this property as a rental, and are charging money to tenants, it's important to speak to a tax advisor to get a clear picture of how your overseas investments could impact your tax obligations. It's a great idea in theory, but if you are paying more money in taxes than you are making in rent, you will either have to increase the rent and run the risk of losing out on good tenants, or think about getting rid of the property altogether. In addition to this, you have to factor in the exchange rates. You might be savvy when it comes to the exchange rates, but it's a good idea to use a specialist that can figure out the best way to transfer payments, minimizing the chances of your money being lost in poor exchange rates.

Understanding the Local Area

Investing in a property in another country is not just about getting a feel for the place. You need to use a legal specialist who has knowledge of the local property market. There are law firms that specialize in properties overseas, and it's important to find these individuals because they will have an understanding of the destination, as well as the financial assistance. You can always choose a legal firm based in your chosen destination, but make sure you keep the lines of communication open. It's a little thing, but you need to be aware of things getting lost in translation. This is especially true when it comes to legal documents. If you are investing in a country where you have no knowledge of the lingo, it might be best to have somebody that is able to liaise so you can get the best deals, as well as make sure you know exactly what you are getting into.

Investing in a New Development

If you decide to invest in a development where the properties are yet to be built, you need to communicate with the developer. You need them to show you some of the recent projects. If there's no information online, or they are not able to show you anything they've done recently, you need to hold back on transferring any cash to the developer. You need to make sure that there is a clause in the contract that states you will get any money back if the development is not completed. It sounds like a fantastic idea to invest in a property, especially if it is a new one with modern materials. But this can be dangerous and can result in you not getting any money back if you don't cover yourself.

Do it right, and investing in a property can be very lucrative. Do it wrong, and it can land you in heaps of trouble, financially, professionally, and in terms of your reputation.

7 Tips on How to Start Saving Money

Sometimes, getting started is the hardest thing about saving your money. However, saving is an achievable goal. It only requires commitment and having financial discipline. Regardless of the amount you earn, you can achieve your short-term and long-term financial goals.

To realize your financial goals, you need to develop a realistic and simple strategy. The following is a step-by-step guide on how you can successfully save money for your future.

1.       Determine your Expenses

The first step to start saving your money is to determine the amount you spend. Ensure you keep track of your expenditures. Once you have the figures, classify the figures based on the categories of your expenditures.

After classifying the figures, get the total amount. You can use your bank and credit card statements to obtain accurate data. You can also use spending trackers such as digital programs or mobile apps to help you automate these figures.

2.       Budget your Savings

Once you have developed an idea of what you spend monthly, start organizing your detailed expenditures in a workable budget. The budget should be based on your monthly income. Developing a budget enables you to strategize your spending and reduce any overspending.

Your budget should also consider regular expenses that do not occur every month, for instance, car maintenance. Aim to save at least 10-15 percent of your total income.

3.       Develop Methods for Reducing your Expenses

If your expenditures are too high, you should consider developing some mechanisms to reduce them. You can identify and reduce the budget for non-essential expenses such as dinner outs and entertainment. You can also reduce your expenses by reducing your fixed monthly expenses like cell phone subscriptions and television packages.

4.       Set your Savings goals and Objectives

Setting a savings goal is a strategic way of saving money. Establish the short-term and long-term goals you would like to achieve. These goals may include marriage, vacation, and retirement plans. Determine the amount of money you need and the approximate period you need to save it.

If you are saving money for your kid’s education or for your retirement, it is recommendable for you to open an investment account. You can also enquire info on retirement planning on high-income earners from online sources. Ensure your goals are realistic and achievable.

5.       Determine your Priorities

Besides your income and expenses, your goals should also determine your savings allocation. Learn to prioritize your savings.

6.       Select Appropriate Tools

Use your savings goals to determine the most appropriate channel of savings. Some tools are ideal for long-term goals (such as retirement), while others are ideal for short-term goals. These tools include savings accounts and insurance programs.

7.       Automate your Saving 

Most of the banks offer automated transfers. Automated bank transfers facilitate convenience and discipline in saving.

Conclusion

Saving money for future use is an achievable goal. You only need to develop a smart and workable strategy based on your income. To successfully realize your long-term and short-term goals, stay committed and focus on your saving strategy.

Saving For Kids' College Education—What You Need To Know: TOP 10 FAQs about 529 Plans

This post has been moved to my new blog Money Fit Moms.

See the updated blog post about Saving for College Here.

 

Money Hip Friends: Budgeting with a Plan

Remember this post where I said we were trying to get our smart friend to write a guest post for us? Here it is. (And for those of you who don't know her, Paige is one of those people that is always #1 (usually literally) at whatever she does, so she's a good one to listen to.)

Paige, Lisa, and I are good friends from the BYU accounting program. She's a young mom of two little girls (2 ½ and 7 months), so life is busy, but having a budget and financial plan in place really helps her to simplify. She also loves to help others with their budgets and help them gain the peace of mind that comes from being in control of your finances.

I think I’ve made a budget, now what? Budgeting with a plan

From my experience, one of the main reasons that people fail at budgeting is because real life doesn’t always fit into an identical monthly mold. After you have worked and drawn up your first budget draft, there are three things to consider to make sure that you have a real, complete budget and sound financial plan: