It’s not uncommon to feel a bit…apprehensive…about your financial future. Believe it or not, we’ve all been there (or still are). But before you can address this uncertainty, you’ve got to get to the root of the issue. Financial literacy is a real thing and it’s unfortunate many of us have to learn the value of managing our money later in life. This cute, little skill can make or break the start of our adulting experience. Let’s be honest. If we’re taught at an earlier age how to secure our bag — or bags if you’re really poppin’ — we’d feel more confident not only about our financial direction, but also about taking risks in our personal and professional lives.
I’m sure we’d love to say that money isn’t everything, and for the most part, it isn’t. But when all falls down the bills don’t stop coming, the collectors don’t stop calling, and the want for MORE doesn’t get any lighter. So, our team of Lovelies put together a list of surefire ways to take control of your finances and boost your everyday savings.
Top ways to secure your financial future
1. Set Financial Goals
What are your goals? Better yet, do you have any? If you don’t, this is the perfect time to start. Without goals, specifically financial ones, it can be difficult to plan ahead for any unexpected outcomes. So take some time to think about your goals. And talk to yourself nice…making goals and sticking to your plan to achieve them won’t be an overnight success.
2. It’s All About the Budget
Now that you’ve set some goals, create a budget to keep your spending in check. Use a journal or a simple budget sheet to track your spending for a few months. And don’t forget to take note of your progress. Have your savings increased? Have your spending habits changed? If you’ve budgeted correctly the answer will be YES to both, and you’ll be able to plan your spending in advance. You should also have a better idea of where your money is going and how often you’re spending. Put that credit card down, sis. If you can’t buy it in cash don’t swipe your card. Take notice of your spending habits so you can make the necessary adjustments to reach the financial future you desire.
3. Separate Your Money
Keep your money separate. Many of us typically have a savings account and a checking account, but are your bills and monthly allowance coming from the same account? Is your savings account one you can’t touch, or are you transferring funds to make ends meet? It’s okay to open more than one or two savings and checking accounts. Having multiple accounts can prevent you from dipping your hand in a cookie jar that’s supposed to stay closed.
To get you started, our Loveliness team recommends having separate accounts for your bills, savings and monthly allowance. Designate a certain amount of money from your check to a separate account. Don’t forget your monthly allowance. Make sure you always pay yourself. It’s okay to treat yourself every now and then, but if you go over what you’ve allotted yourself for the month…sit tight!
4. The Snowball Method
Now this one I’m sure you’ve heard of. Author, radio-show host and financial guru, Dave Ramsey, introduced the snowball method as a proven way to reduce debt. You’re probably asking if it actually works. The quick answer….ABSOLUTELY.
List your debts from smallest to largest, regardless of interest amount. Pay the minimums on all your debts except for the smallest. That’s the one you put as much money and momentum in as you can to pay it off quickly. Once the smallest debt is paid you work your way up the list, using the funds you allocated to pay off the smallest debt towards the next bill. It’s called “snowballing”.
Aside from paying down your debts at an accelerated pace, paying off your smaller bills first gives you the motivation and satisfaction you need to check off your goals. It all brings you one step closer to the finish line of your financial journey. Keep up the momentum!
5. Hire Outside Help
Let us be clear. There is nothing wrong with hiring a financial advisor.
(Now, say it louder for the ones in the back)
With everything you have going on, we understand budgeting may be one less thing you’d like to add onto your list. If you have the resources, hire outside help. But know your financial advisor will still push you to achieve your goals. There’s still work to be done on your part. A financial advisor can give you the tools, but they can’t hold your credit cards for you.
Our team of Lovelies are not financial experts, but we know a thing or two about saving coins. Being debt-free is a whole mood, and while it may seem impossible, if you stay the course and trust the process, we know you’ll be one step closer to achieving what you never thought attainable.
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