Statistics prove that many people do not have a lot of money in their savings. In fact, in 2016, Forbes reported that 63% of people have less than $500 in their savings. This statistic is quite alarming! The goal of all small business owners is to keep their business financially stable. However, what about their income outside of the company? It is quite challenging to run a business without taking care of your own financial needs first. Still, even if you’re not a business owner, these tips will benefit you. A high percentage of people live paycheck to paycheck which isn’t ideal. If you are living paycheck to paycheck, then your money needs better management. Keep reading for the top financial tips to keep better track of your money.
Be Mindful of the Little Things
The life of a working adult is often hectic. Also, if you’re juggling things out of work such as family life, school, or philanthropy, then things become even more complicated. Coffee may govern your life because you’re tired. Another possibility is that you don’t have time to cook or prepare meals, so eating out eats away at your budget.
Apps such as Quicken helps you take a snapshot of your receipts and upload them to your phone or tablet. Owning a debit card is also beneficial because the bank can thoroughly detail the purchases you’re making. Budgeting in coffee and eating out won’t cause overspending.
Create a Realistic Budget
First, significant expenses such as bills, mortgage, groceries, and insurance should factor into your budget. Then, it is essential to factor in the “extras” such as coffee or eating out. While only spending money on the essentials may seem practical, it is often not realistic. Honesty is key. Create a budget that can allocate and balance necessary spending versus the things that you love to splurge on now and then.
Keep a Consistent Percentage
Most people throw random amounts of money into their savings, especially when they earn more money than usual. What tends to happen is people withdraw or take money from their savings when they unrealistically put more money into their savings than they could afford. If once a month, you save a certain amount of your paycheck only, this will keep you disciplined. Whether you are saving up for retirement, a vacation, or money for a rainy day you’ll be happy to see all the money that you can save up over time. Setting a goal and sticking to it is satisfying.
Automate Automate Automate!
It’s hard to remember to save every time that’s why we recommend setting up an automatic savings plan that takes out a specific amount on a regular basis. One service we recommend is called Digit (digit.co) which automatically saves money for you and can set aside money for all your monthly expenses.
PL Consulting Can Help You Plan Your Budget!
PL Consulting offers a diverse range of bookkeeping and other financial services. Each of our services is customized to fit the needs of our client and his or her business plan. Our team can help you with each step of your business from organization, to budget, to financial maintenance. We are located in Pikesville at 119 Old Court Rd Baltimore, MD 21208. Contact us at 410.764.3731 or firstname.lastname@example.org so that we can assist you with your bookkeeping needs. Remember to stay up to date with everything PL Consulting by following us on our social media platforms via Facebook, Twitter, and LinkedIn.