Debt Relief Tactics

Money Management: 4 Tips for Mastering Your Finances

Money Management: 4 Tips for Mastering Your Finances
Reviewed by Minh Tong
Updated October 26, 2022

Mastering your finances might sound like a daunting journey. However, every day you wait, debt and poor spending decisions compound and make the path to mastery all the more difficult. Fortunately, wise financial choices made sooner also compound, ensuring a bright financial future. Here are 4 tips to help you manage your money.  

Create a Budget

Calculating your net income is the first step to creating a budget. Net income equals your take-home pay (wages minus deductions/taxes/etc.). This is particularly important if you’re in business for yourself. You don’t want to go into tax season unprepared. 

Next, categorize your expenses into two broad categories—fixed and variable. Fixed income includes costs you must make regularly and don’t fluctuate too much (car insurance, rent, subscriptions, groceries, etc.), and variable expenses include things that change (entertainment, vacation, unexpected medical appointments, etc.)

Once you have your financial blueprint prepared, you can make a plan to master your finances. 

Make a Plan

Begin projecting your expenses out a few months and consider what can be ejected. Do you need that Netflix subscription? How much money can you save a year if you drink coffee from home? Call your insurers, creditors, and mobile provider and see if you can negotiate a lower bill. 

A popular rule of thumb is the 50/30/20 rule. That is 50% of your income goes to needs, 30% to wants, and 20% to savings or debt. Of course, your situation will depend on you. If you are in outstanding high-interest debt, it would make sense to reduce your wants category. 

Utilize your Savings 

When you’re in debt, saving might not be the first thing on your mind. However, slowly building an emergency fund is critical to financial well-being. You need something to fall back on should any surprises emerge. 

If you have a solid debt payment plan and aren’t making a high-interest payment plan, it’s time to start saving. Aim for an emergency fund that can keep you afloat for 6 months or more. 

Consistency is Key

It’s easy to make a budget and plan your path to financial freedom. However, sticking to it is an entirely different skill set. Be realistic. Start slowly. You might not be able to become debt free in 3 months or afford a house next year, but with the right tools, you’ll get there. Often, the right way is faster than the quick way in the long run. 

Pay Off your Debt

Out-of-control debt is the worst thing for your financial health. It leads to a poor credit score, inability to rent or buy accommodation, difficulty applying for more loans, and a complete lack of financial freedom. On top of that, by not paying off your debt promptly, you are paying substantially more for the things you bought than they’re worth. 

You can try to get out of debt on your own, but there are alternatives that will allow you to start building an emergency fund and stop paying interest much sooner. Debt settlement companies negotiate with your creditors so that you can pay a lesser amount. That means no more interest, no more harassing calls. 

Start Mastering your Finances Today 

Americor has relieved over $2 billion in debt across 30 states. They are fully accredited by the Better Business Bureau (BBB), The American Fair Credit Council (AFCC), and the International Association of Professional Debt Arbitrators (IAPDA). 

You can find out if you qualify for debt settlement, get a free debt analysis to determine if debt settlement is right for you, and receive credit counseling. Talk to a free debt consultant today