Avoiding Financial Destruction: How to Become a Master of Your Money
Tuesday, October 21, 2014, 1:00 AM | Leave Comment
The past few years have seen an increase in DIY home projects and other frugal living practices as people start to recover from economic uncertainty. Mastering your budget can keep you afloat from paycheck to paycheck, but mastering your spending habits will help you enjoy a financially secure future.
If you’re looking for ways to trim the fat of your family’s spending, then here are some great tips on avoiding financial destruction.
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From Zero to Hero
You may have heard about “zero-balance budgeting,” but how can this concept keep you on track? Zero-balance budgeting refers to the idea that all of your money has a place.
In other words, you should know how every dollar you bring in will be spent. Some people practice this on a monthly basis while others prefer a week-to-week schedule.
Take some time to evaluate how and when you get paid. Once you understand the figures, allot each dollar to categories such as utilities and car payments.
The goal is to make your money more productive by giving it an assigned value.
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Budgeting for Fun
Don’t forget to budget for birthdays, parties and other fun expenditures. Mastering your money includes having fun with your spoils.
People who forget to factor in date nights and holidays may end up spending unnecessary cash. Speaking of cash, it’s a good idea to keep an envelope of cash for unexpected activities.
If you keep cash around, you have a better chance of spending money wisely because you can physically see where your money is going.
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Go to the Pros
Things are looking up for those who want to play the investment market, but how do you start if you’re new to the idea?
If you’re not sure about how to invest your money or need help with savings plans, then consider hiring a professional financing firm like McLay & Company Inc. Trustee in Bankruptcy to manage your funds for you. Financial consulting firms aren’t just for people with large assets.
In fact, professionals help a variety of people identify weak points in their financial portfolios so that they can make better long-term decisions.
Effective money management means taking control of your finances in a proactive way. However, keep in mind that obsessing over money isn’t the answer.
You need to find the right balance between actively monitoring your financial accounts and letting your money do the heavy lifting for you.
Financial firms will help with that, but long-term success comes from being meticulous about how you use your resources.
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