Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
Managing Your Finances: 6 Tips To Help You Out
March 2, 2023
Image: Pexels/Mikhail Nilov
Managing your finances isn't always an easy task - but with the right strategies and tips, it doesn't have to be a challenge either. For those of us who are not financial experts, managing our finances can seem daunting or overwhelming. But it is possible to do so in an effective manner that will make your life much easier and more secure long term. Whether you're just starting off as a parent, working on budgeting for your household, or assembling a team of financial advisors from professionals at banks and other institutions, having solid information about how to manage money is key. To help you out at any stage of life, here's a look at six valuable tips to keep in mind when managing your finances.
1. Have a Financial Plan - The first step to proper money management
Without an appropriate budget, you may find yourself in bankruptcy or having to take advice from a bankruptcy trustee – neither being ideal scenarios. However, if you are living in Edmonton, for instance, having Edmonton’s highest-rated bankruptcy trustee can help you devise a financial plan can be incredibly beneficial. Conversely, wherever you may be, if you are in need of a bankruptcy trustee, it is advisable to select the one with the best reviews. Anyway, creating a plan allows you to track your income and expenses and make adjustments where necessary to help keep you on track, leading to long-term financial success. Taking the time to build a thorough approach that fits your needs can go a long way toward both short-term and long-term money management objectives. Once you have established your plan and have adopted habits toward following it, manage any unexpected costs that arise while still making progress toward your goals!
2. Track Your Spending - Know where your money is going
Nowadays most of us rely heavily on debit or credit cards for purchases, so manually tracking this information can appear to be a daunting task – however, there is a range of apps available now specifically designed for just this purpose! From simply inputting purchases into a spreadsheet on Microsoft Excel, or downloading an app onto your phone - either way, it is worth finding a system you're comfortable with and sticking to it. Tracking your spending gives you the power to make sense of your bank statements and really helps better understand where it all goes at the end of each month. So give it a try – there's never been an easier time than now!
3. Create a Budget - Keep your money under control
Establishing a budget isn't just setting up certain spending limits - it's also an exercise in getting creative with how you might save more money or better control your cash flow. When crafting your budget, remember to allocate some money for future savings and long-term investments. This could mean planning ahead for bigger purchases like holidays or cars, or something as small as setting aside a few dollars every month for movie tickets. With careful thought, strategic decisions, and patience, a budget can help you gain the financial freedom you deserve!
4. Invest Wisely - Build long-term financial security
Start small and don't rush into things; whatever you decide, be sure to diversify your portfolio. Research potential opportunities such as stocks, bonds, mutual funds, ETFs, and other options. Discover which ones could benefit your overall investment strategy to help build long-term financial security so that you can achieve your goals for the future. Spend some quality time learning about investments and their impact in order to develop a sound strategy for creating wealth and safeguarding it for years to come.
5. Save Money for Emergencies - Helps manage unexpected expenses
Most of us have been caught off guard by an unexpected expense at one time or another; a new tire, higher insurance costs, or an appliance in need of repair. Having some money put away to cover such expenses can make a huge difference to your peace of mind. This is why it’s so important to find ways to save money for emergencies. Start by setting aside a portion of your paycheck each month into a separate savings account solely devoted toward emergency funds. You will be surprised how quickly you can build up those reserves, and more importantly, even more, relieved when the need arises that you’re adequately prepared. Taking this step and including it in your overall financial plan is sure to help you better manage the unexpected.
Image: Pexels/Pixabay
6. Make Debt Repayment a Priority - It will help reduce interest fees and improve your credit score
Repaying debt can seem overwhelming, but breaking payments down into smaller amounts can help you budget better. You can also create an action plan for yourself, setting goals and holding yourself accountable for progress against those goals. Making debt repayment a priority isn't always easy, but taking the time to do so will be incredibly beneficial in the long run. Furthermore, by reducing those outstanding balances, you’ll also be lowering the number of interest fees that you have to pay - which can save you a significant amount of money in the end. Plus, a good credit score is essential for anyone looking to take out loans or make major purchases like cars and houses, so keep your debt repayment on track to reap the rewards in the future.
See: Alberta, The untold history of innovation from Canada’s badlands – Part 1
Managing our finances can sometimes be overwhelming and daunting. However, following these six tips can help to empower us to take control of our financial lives and create a strong foundation for our financial future. Having a plan, tracking spending, creating a budget, investing wisely, saving for emergencies, and making debt repayment are essential components that when implemented together form a holistic approach to managing your finances. Now you have all the resources you need to make informed decisions about how best to use your money. Utilizing these tips will get you on the path toward taking command of your finances and guaranteeing success in the long term.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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