While most people try to save what is left after spending, we’re here to help you understand that the winning strategy to having financial peace with your money is when you save first and then spend. You are in control only when you tell your money where to go when you get your paycheck.
However, you have to get a few things sorted out before you can take control of your finances. Let’s address each with some simple solutions:
What is ruining your financial peace?
First, identify the financial stressors in your life. It mostly includes worries about debt, paying bills late, lack of financial security, no sense of control over your finances and arguments over finances. Here’s how you can deal with that stress.
Get out of debt
This is the first necessary step to bust your financial stress. But how is done? First things first, monitor and control your impulse spending. It will stop bleeding your account. You can use a debt snowball as a plan to get out of debt.
Getting out of debt will give you the financial peace you’ve always needed. Try it! It will seem super difficult at first and you’ll have to give up on a few expenses, but later when all is well and debt-free, you’ll be grateful for your decision and be financially at peace with your money.
Pay on time every time
Pay your bills when they come in. This is the easiest way to eliminate stress over bills. The moment you receive your power bill, write a check, put it in an envelope and mail it as soon as you can. Or if you’re a fan of online transactions, log in to your computer and send your electronic payment.
We know it’s not as easy as it sounds. That is why we recommend you have a cushion in your bank account, so there’s always enough money to pay off bills as they come in.
Automate your payments
It’s a great alternative to the above method. Instead of having to pay your bills manually as they come in, you can set up automatic payments as well as automatic savings online. So when your paycheck arrives, your bills get sent out and a certain amount is also transferred to your savings. This brings you a step closer to financial peace with your money.
Develop your financial security net
If you are married and/or have any dependents, get yourself life insurance right away. Ensure to get the right policy for your needs. Second, make sure you have a will.
This may not seem necessary if you are young, but if you have dependents, it is important. Also, maintain an emergency fund — right away! There’s no right or wrong time for that. Emergency funds always come in handy.
Do weekly reviews
Review your finances at least weekly. If you want to get a sense of control over your finances, you will have to monitor them. Take 10-20 minutes every week. That is all it’s going to take to look at your budget, your expenses, your income and make sure everything is under control.
Talk money with your partner
Money can stress relationships out. Here’s where the phrase “communication is key” comes into play. Talking about money regularly will help you see eye-to-eye and develop financial peace. Take a minimum of 20 minutes each week and review your finances and goals together. It will make a major difference in your relationship and reduce your stress level.