Would you find it surprising to know that two in five adults struggle when it comes to understanding their finances? Or perhaps that wouldn’t surprise you at all because you also feel lost at times when dealing with the ins and outs of managing your money. However, with the right tools and resources, anyone can learn how to be a master of their own money with ease. So, take a deep breath and check out these five ways to boost your financial confidence.
Budgeting Skills Pay the Bills
Did you know that about only 32% of US households prepare a monthly budget? Without knowing your spending in comparison to income, you can easily rack up debt. So learning the basic, but oh so important skill of budgeting will help you feel more comfortable when making financial decisions.
And the good news is, you don’t need to be a math wiz to create a budget! There are plenty of online calculators and apps that do all that complex calculating for you, making your budgeting process quick and easy. Once you develop this skill, you’ll be on your way to smarter spending and saving.
Keep Score of Your Credit Score
Your credit score can impact your financial condition. It’s used by all kinds of businesses to make decisions about you including whether to offer you credit, auto loans, mortgages, etc., and what price you will pay for that credit.
You should know what your credit score is and take the opportunity to keep it high and to increase it when possible. There are plenty of resources to help you learn all about credit scores including sites like MyFico, Experian, AnnualCreditReport.com and Back to Basics: Learning About Credit post.
Save Money Now So Money Can Save You Later
Did you know that a whopping 73% of adults make most of their purchases on a whim? And get this, they’re spending an average of $314 a month on those impulse buys. That’s a lot of dough – or pizza, if that’s their impulse! Curbing impulse buying can help you save money and stick to a budget and control your finances. Sites like America Saves or MyMoney.gov are super helpful resources for learning savings tips to help you stay on track.
Safe Money is Smart Money
Financial literacy also entails an element of security. You work hard for your money, and naturally, you want to keep it safe and secure. Unfortunately, one in ten adults falls victim to a fraud or scam every year in the US. Yikes! But knowledge is power and can help keep your money safer. Check out these articles and resources to help keep your finances and information more secure:
Invest in Your Education
It’s never a bad idea to nerd out by educating yourself on finances. There are free courses online at sites like Study.com which includes courses on accounting, personal finance and more. Check out education materials from your financial service provider and even learn more by reading other articles here on the Moneytree blog. For example, you can visit our Smart Money or Financial Living page for some great information.
Understanding your finances and how to keep your money safe doesn’t have to be overwhelming. With a little discipline and curiosity, you can tackle your finances like a pro.