Simple suggestions for what to do with your money
Money, money, money, money… monnneeeeeeeey. The O’Jays and ABBA were right:
It’s a big deal. And sometimes it’s tough to hang onto.
It’s a big deal. And sometimes it’s tough to hang onto.
So take this advice from DaveRamsey.com—tips and tactics for keeping the wolf far,
far from the door:
far from the door:
1. Prioritize long-term goals.
Saving for retirement should come before setting aside money for children’s college costs.
2. Get on the same page with your significant other.
Going over the bills and budget together can end squabbles about money.
3. Be patient.
Save until you have cash for that car, home theater system, vacation or the like.
4. Balance your checking account.
This helps you start, monitor and stick with a budget.
5. Keep savings and checking accounts at separate banks.
If you don’t see your savings when you log into your more frequently accessed checking account, you won’t be as
tempted to tap that money.
tempted to tap that money.
6. Issue yourself an envelope
filled with your monthly fun
money.
Once that cash is gone, wait until the next month for the next “fun” expenditures.
7. Have an emergency fund.
This is your parachute in case a job loss occurs or a huge expense pops up. (You
should also build a fund for smaller irregular expenses like medical prescription
costs or appliance repairs.)
should also build a fund for smaller irregular expenses like medical prescription
costs or appliance repairs.)
8. Communicate with your lender or banker.
As you set up a plan to pay off debt, questions may arise. Credit card companies
and banks often will agree to better terms or cut fees if asked.
and banks often will agree to better terms or cut fees if asked.
9. Embrace the power of cash.
Paying with paper gives you leverage to negotiate discounts, and your natural
reluctance to give up cash can curb frivolous purchases.
reluctance to give up cash can curb frivolous purchases.
Related: 16 Rich Habits
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