Finances are no joke! They can be stressful, they can keep you up at night, and they can make or break your world. Of course, money isn’t everything, but money management is a necessity. You don’t have to be rich and/or make a lot of money to take advantage of good money habits. In fact, there are tools to help reduce financial stress that anyone can leverage.
When you have the right tools and resources, you can do amazing things with your finances. Now, don’t get me wrong, the tools are only as good as the person behind them, but if anything can make saving money, paying off debt, and getting financially ahead easier, sign me up! I’m sharing 4 tools to help reduce financial stress in your life, so you can focus on achieving the life you want!
Tool #1: A budget
A budget will forever be on my list of tools that make people’s financial lives easier. The reason for that is because without a budget, you don’t have a true understanding of your finances. At its simplest form, a budget shows what money is coming in, what money is going out, and what money is left over. You can use that information to reach your financial goals.
When you are fully aware of your income and expenses, you can control how money is allocated. You can decide to cut back spending on food. You can decide to save more instead of shopping. You can save first because you know what you can afford to save. A budget can and will make your financial life much easier, you just have to use one.
Tool #2: A debt payoff tracking system
Dealing with debt is not fun and unfortunately, most people will struggle with it. That’s where a system can make your life a lot less stressful. Nothing is better than seeing progress month-over-month. In order to do that, you actually have to track your debt payments on a consistent basis.
Tool #3: An easy way to save
As I mentioned earlier, a budget will show you what you can afford to save each month. Having a resource that makes saving money easier will allow you to save even more than you thought! Some people think that saving money needs to be on a large scale to be effective, and that is so far from the truth.
Saving money, whether a little or a lot, is impactful. There are great tools like automatic savings, contributing up to what your employer matches into your 401k plan, and free bank features like “Swipe2Save” that make saving money a lot easier. Start implementing these tools to help reduce financial stress!
Tool #4: Proper bank accounts
Some people think that a simple checking account is all they need when it comes to banking. NOT TRUE! At minimum, everyone should have one checking account and one savings account. Your checking account should never be used for saving, and your savings account should never be used for taking money out consistently.
When you are knowledgeable about the banking options available to you, you can leverage those options to get ahead financially. If you don’t make much money, it’s not wise to have a checking account that comes with fees or minimum balance requirements. If you have funds in savings that shouldn’t be touched, you can earn more interest with an online savings account.
Familiarize yourself with the options available to you. Proper bank accounts can help reduce financial stress and make sure you are taking advantage of the best banking options available to you. Call or stop by your local banking center for additional assistance.