What if you could take control of your money, rein in your finances and actually handle your accounts like a boss? That’s the strategy we’re showing you in this blog post.
Our goal is to help you gain control over your personal finances. In the process, we’re hoping to not just help you manage your money, but also make more money. All this, like a boss. Before that, let’s explore the best strategy for saving more money.
Step 1: Money in the bank
The best wat to control your money is by delegating where it goes. That’s where the three-account plan comes into play. When you use one account to do everything, it becomes very hard to rein in your finances. You can save and invest better if you systemize your money.
The checking account
When your payments or salary drops in this account, retain only a bare minimum. Perhaps enough to handle small purchases and grocery runs. This helps you get a grip on big spends.
How? Each time you think you want to buy something that costs a lot, you will need to transfer money from your savings account. This will give you enough time to think if what you’re buying is worth it.
The payments account
Have an account only to pay your monthly bills, subscriptions and all other fixed costs you have to do. This will ensure you’re setting aside enough to cover all dues and help you track your daily costs.
Talk to your bank to set this account up. Banks usually allow you to hold multiple accounts with no extra cost. Automate payments to make it easier for you so you don’t miss any due dates.
The savings account
This is the most essential account. Set up an automated transfer for each time your paycheck drops to automatically wire money to this account.
This creates a step-by-step process where you pay your fixed payments first, transfer money to your savings account and spend what’s left in your checking account. We have you covered on more ways to save here.
Step 2: Making more money
Don’t ever rely on just one source of income. It’s too risky and you’ll have nothing to fall back on if you lose your job, shut down your business or have no freelancing opportunities.
Multiple sources of income also help push you to do better. You will challenge yourself to deliver more value and, in turn, pick up new skills along the way. This brings us to the crucial step in owning money like a boss.
Step 3: Invest in the best
The first step in understanding investments is that you need to be in it for the long run. The best step in your personal finance journey is when you’re generating long-term wealth. That happens when you stop assuming that you’re going to instantly make more money when you invest.
Be ready with your money first. Then, you can use the cash to create more of it. That’s how you build responsible wealth. You first settle your debts, create multiple ways of generating income and then start investing.
Do your research
Plan, plan and plan some more while deciding where you’re putting your money. Real estate and stocks are usually the way to go, but to each their own. Find what you’re comfortable investing in and follow a systemic allocation of funds.
Risk 10% in experiments. Keep 90% in dedicated investments with safeguards. Pick what best suits your personality and you’re well on your way to making big bucks on the long run. In the end, there is no right or wrong method to invest as long as you’re learning and earning.
Like a boss
Aim to meet your expectations when planning your personal finance. Expectations vary from person to person. Some might want to retire early and travel the world. Others might want to save enough to settle down and live peacefully.
No matter how varied your goals are, once you have this plan in motion, you’re all set to be the boss. This will go a long way in ensuring you’re the boss of your money and never the other way around.