Managing your Money in 2020

Managing Your Money in 2020

We’ve all been through it or know someone who has. Recovering from the holiday season in January and it feels as if payday is a million days away. It’s not a great way to start off the year and sets the stage for a bad first quarter. With that in mind, we’ve decided to compile some helpful ways for managing your money in 2020.

Always Live Within Your Means

It’s an old saying, but it certainly rings true today more than ever. With the availability and willingness of banks to offer credit in various forms; it’s easier than ever to fall into the debt trap. One must be extremely wary when borrowing. Avoid credit cards whenever possible and use only when absolutely necessary. In the age of the e-commerce, it might be difficult to get by without a credit card, but it is important to remember to pay off your entire credit card balance every month to avoid the high interest rates that are attached.

Pay Yourself First

This is a popular phrase among the personal finance and retirement planning community. It basically means directing a set amount of your salary every month to your savings and then paying for your monthly expenses like utilities after. Whatever is leftover after these commitments are taken care of, is your discretionary income which can be spent or invested as you please. The reasoning behind paying yourself first is to treat savings as a monthly expense, as opposed to waiting until the end of the month to see what is left and saving that instead. This has proven to be an effective method of saving for millions and it will probably help you too.

Make More Money

The easiest way to save more money is to make more money. So you have a steady job that pays a set amount per month, and you are able to save a portion of that every month, but some months have more expenses than others ,and you might not save as much that particular month. One way to mitigate these unexpected expenses is to make more money. This can be achieved through passive income like investments, or you could attain a supplementary source of income through a side business. For instance, you might have a hobby or something that you’re good at. If you could make a few extra dollars doing that every month in your spare time, you’ll be a lot better off in the long run.