Want to know what Financially Savvy Women do? Here are 5 steps to increasing your financial health so you too can be savvy with your finances.
Financially Savvy Women Stay on Top of their Daily Spending
When working out you may use a Fitbit or another type of tracker that helps you keep track of what your goal is for the day. Another way to track things, but through finances, is by tracking your spending daily. Create a spreadsheet or use a notebook that can fit into your purse. After purchasing anything, record how much money you spent and what you spent it on. At the end of each day review what you spent so you can stay on top of your budget. This is also helpful when you are in the process of creating a budget.
When you see your spending habits in a day, and then a week, you can better gauge what you need to allocate towards each expense.
Financially Savvy Women Know What They Should Spend and Where to Spend It
When it comes to your health, the best way to work on your physical fitness is to start with a workout that is within your limits of what you can handle. The same applies to your finances. Living within your means is when you are fully supporting yourself or family through the income you have coming in each month. To do this, it is important that there is not a deficit by spending more than what you earn in a given month. The power of living within or even below your means helps you to save more for the things or experiences that you value in life, and to pay off plaguing debt. How do you know what is within your means based off of your finances? The Finance Bar created an app for iPhones and Androids to help figure that out. Within this app you can plug in how much your monthly income is and the app will tell you how much money you should be spending for your home, transportation, food, etc. through our Monthly Budget Calculator. Use the app to help you understand how much you should be allocating for each category of spending so you know how to live within that percentage.
Financially Savvy Women Don’t Use Credit Carelessly
To stay financially healthy, make sure that you avoid bad decisions that can affect your overall financial wellness. Similar to how eating too much sugar and sweets can affect your physical health, the sweet temptation of credit cards can also lead you down a bad road of regret. The best thing would be to avoid credit cards for things that are not major purchases or necessary (especially if you aren’t able to pay the balance off in full each month). Don’t allow the luring words of “paying later” to distract you.
Financially Savvy Women Increase Their Financial Knowledge
Another way to flex your financial muscle to improve your financial health is to increase your knowledge of finances. You can do that by reading a new finance book every year or every six months. Taking a trip to the finance section of your favorite bookstore or searching for books online can help you discover a new world to optimize your finances and increase your money muscles.
Financially Savvy Women Automate Their Bill Payments
The final way to take care of your financial health is to plan your financial diet. Exercise the habit of paying your bills ahead of time each month. Paying your bills before they are due, helps you become more responsible with your finances and helps you to avoid any slip ups where you may spend money that you needed to go elsewhere. An easy way to do this is signing up for subscriptions with your bill collectors so that they take the money directly out of your checking account when it is due.
The spring is a time to see the physical health results that you have been working on but it can also be a time to financially flourish with your money. Stay on top of your finances by implementing these steps to increase your financial health.