Money, and the need for it, is one of those stressors that is never going away. The majority of Americans don’t have the first clue about what to do, because they have never been formally taught anything about handling money. However, that does not mean that there is nothing you can do to try and take control of your personal finances and better understand how to handle your money.
1. Save Early, Save Often:
If you are not putting aside some of your paycheck into savings each payday, then start doing so. The sooner you start creating saving habits, the sooner you will find that your situation suddenly is not as dire as you might have thought. Having a savings account is like having a safety net that will catch you in times of financial distress.
2. Investments for Long-Term Savings:
Good investments are those that are done within your means toward a financially beneficial venture; bad investments are those that are done outside your means in a high-risk low-yield venture. Long-term investments can seriously benefit your future if they are done correctly, and if you have some extra money that could be put towards such an investment, then it would be a good idea to discuss your options with a financial professional and see which investments would work best for you. The sooner you start investing the more time your money has to mature, which means bigger and better long-term gains for your future.
3. Do Not Fall for the Scams:
The unfortunate reality of today’s market is the existence of countless scam artists who know how to talk people into giving up their hard-earned money. To try and avoid these types of people and keep your finances secure, remember the following:
- If it seems too good to be true, then it is. Don’t fall for “get rich quick” schemes that are more likely than not scam artists looking to steal your identity.
- Be careful who you give you credit card information to. This seems obvious, but it is still one of the most common ways that identity thieves get their dirty work done.
- Monitor your bank accounts regularly and keep an eye out for suspicious charges.
4. Get Insured:
In case of an emergency or natural disaster that has the possibility of leveling your home, car, or other costly possessions, insurance is always a good fail safe to keep your financial situation afloat. Insurance will help cover your losses and keep you from losing everything in the worst case scenario.
5. Manage Your Debt Wisely:
Debt is virtually unavoidable, but that does not mean it needs to be out of your control. Make your payments on time, and be careful about how much debt you take on. If you are already struggling, then it might not be a good time to be looking into a new car. Be smart, and always pay attention to your financial situation.
Edward Schinik has been with the Investment Manager since 2009 and has been with one Affiliated Investment Manager since 2005.