One of the biggest gaps in most peoples’ education is the lack of financial knowledge. There are thousands and thousands of college students that are entering the workforce every year, and they have no idea how to manage their finances. Not having a game plan for your money is one of the worst things that you can do. Without a plan, you could end up in a massive hole of debt with no way of getting out. If you’re in the dark about your finances, don’t worry, there are several ways that you can quickly improve your game plan today.
Make a Budget
Easily the most important thing that you can do is make a budget. It sounds like a mind numbing task, but thanks to your smartphone, it’s never been easier. There are dozens of different apps that you can use to make a budget with only a few simple swipes.
One of the best apps that you can use is Personal Capital. After you create an account, all you have to do is sync your bank account and credit cards, and the app will handle the rest. It will show all of your recent transactions and show you where your money is going and some of the areas where you could make cutbacks. This is one of the easiest ways to improve your finances, you can do it in a matter of minutes.
Have a “Rainy Day” Fund
On a similar note, it’s important that you create an emergency fund. This is a portion of money that you’ve set aside, preferably in a different bank account, that you don’t touch unless there is an emergency. This could be anything from car repairs to hospital bills. It’s important that you have some rainy day money because you never know what life is going to throw at you, and any unexpected bills could wreak havoc on your finances.
One important aspect of finances is planning for the future, and the best way to do that is by investing your money. If you don’t have any experience investing, it can be a scary thought, but thanks to the Internet, it’s never been easier to start an investing portfolio and let your money work for you.
If you want to dip your feet into the investment waters, but you don’t know where to start, give Betterment a shot. Betterment makes investing as simple as a few mouse clicks. With Betterment, all you have to do is create an account, set your goals, and then start making deposits into your account. From that point on, Betterment will handle the rest using their robo-advisors, which will invest your money based on your financial goals and risk preferences. They will continue to reinvest your money and allot it as your goals change and the more money that you continue to invest.
Buy Quality Insurance
One of the biggest holes in most people’s finances is the lack of quality insurance plans that they have. This could be anything from a term life insurance plan to a homeowner’s policy. Insurance plans are the best safety nets that you can ever buy, but most people are going without the protection that they will need.
For example, if something tragic were to happen to you, and you didn’t have life insurance coverage, your family and loved ones would be responsible for all of your debts and final expenses. Your family would be left with hundreds of thousands of dollars of debt. Losing a loved one is never easy, but being left with a mountain of debt on top of that is going to make the situation a thousand times worse. Luckily, sites like Haven Life Insurance have made it extremely quick and straightforward to get quality life insurance at an Affordable price. Don’t wait any longer to get an insurance plan for the protection that you deserve.
Trim off the Excess
Most people don’t realize how much money that they are wasting every month in coffee, entertainment, eating out, and much more. Now that you’ve created your budget, it’s vital that you take a hard look at your expenses and see where you could be saving money. Your budget is going to be useless unless you use it.
Improving your Finances in One Day
These are only a few of the ways that you can drastically improve your finances in a matter of hours. Money is what makes the world go around, and not having control of your money could leave you stranded. Making a few simple changes could give you the foundation that you need to get the financial security that you’ve always wanted.
FYI: I worked at a dead end cubicle job from 2005-2011 for about $30,000 per year. I went self-employed in July 2011 and make between $70,000-$90,000 through blogging, professional pet sitting, hubby's reffing, and our rental home. If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you, PLUS a free custom header banner from me!). Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!