Easy Ways To Become A Master At Managing Your Money

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Take a look at your financial picture. What do you see? If the picture looks hazy — you don't quite know how much you're spending every month, and maybe you don't know anything about your investments — then you need to get a handle on your money. Don't despair. Getting your finances in order doesn't need to be a difficult task, but you do need to start somewhere. Here are six ways you can get your finances in gear and prepare for the future.

Create Financial Goals And Stick To ThemWhat do you want to do with any money you've saved? Now is the time to think about why you're saving money and planning for the future. Having a goal, or even a few goals, in mind can keep you focused on what you want in the future. Perhaps you want to retire, donate to a charity or save money for your child's college tuition. Now that you have a goal, the website Kiplinger suggests defining your financial goals and putting them in writing for additional motivation.

Take A Look At Your BudgetYou can't make a decision to cut spending if you don't exactly know how much you're spending. Maintaining a household budget and recording your income and expenses every month can be an eye-opening experience. You might discover you're spending a significant portion of your income on groceries, or that your entertainment budget needs an overhaul. While recording your expenses may reveal a pricey coffee-and-doughnut habit, a budget can also help down the road. Personal finance blog MoneyNing notes that tracking your budget can help you prepare for any future crisis.

Make A List And Check It TwiceYou know you owe money, but do you know how much you owe? According to personal finance blog Man vs. Debt, you should tally all debts you have and make a list of your creditors. Don't forget any personal loans you may have; you should repay loans from your family or friends the same as you would a loan from any creditor. Calculating your total debt may inspire you to make changes to your lifestyle, too.

Don't Go On Autopilot With Automated PaymentsPaying a bill via automated payments can free up some of your time. However, you should still monitor your bills to guard against any fees that may have been tacked on since the previous payment. Plan to take a look at the bills you pay automatically every month, and contact the provider if you note any discrepancies or changes in the bill total.

Make A Plan For Any Potential WindfallLet's say you receive a one-time lump sum, perhaps from a bonus at work or through an inheritance. After paying taxes, you might be wondering what to do next. That's where the website Kiplinger suggests assembling a financial team if the windfall is substantial, so you can plan for the future. For a more modest amount, personal finance blog Get Rich Slowly suggests spending some of the newfound money on fun and using the remainder to pay down any debt you have. Having a plan in place for any unexpected money that may come your way can lead to smarter savings.

Don't Forget About RetirementIt can be difficult to think about saving for retirement, especially if your golden years are still decades in the future. However, planning for the future is just as critical as other aspects of personal finance. To get started, put on your to-do list taking time to investigate any retirement plans available through your employer. Next, put a retirement plan into place and start saving.

Megan Horst-Hatch is a runner, reader, baker, gardener, knitter, and other words that end in "-er." She is also the president of Megan Writes, LLC. Her work can be found at Examiner.com.

Source: Easy Ways To Become A Master At Managing Your Money