It’s important to learn the skills it takes to reach out and ask for help. Fortunately, money transfer apps, like Remitly, make it easy for friends and family to send you a little cash when you need it. But, if you’re depending on it to get by, you aren’t doing your future any favors.
It’s important to build a bright financial future, which means not depending on the money of others and depending on your own money strategies to get you ahead instead.
Make Saving Automatic
You won’t ever be able to get ahead unless you start saving. That’s because an emergency can pop up at any time. If you don’t have the money to pay for a car repair or a medical bill, you can find yourself in unmanageable debt in an instant.
Unfortunately, saving isn’t easy. Most people won’t save at all if it all hinges on their ability to move the money manually. Instead, make savings automatic. That way, money ends up in your savings account every month, whether you remember to save or not.
Still looking for ways to save? Some apps, like Acorns, round up purchases and put the cash directly into a savings account for you!
Pay off Debt
Many people live above their means. Although it may make life more enjoyable and less stressful in the short-term, it will make things worse in the long run. That’s because debt can cost you a lot of money.
High-interest debt, like credit cards and some auto loans, will end up costing you hundreds or even thousands of dollars on top of the initial money you spent.
Paying off your debt is always a good money strategy. Start by paying off high interest debt, and when it’s all paid off, take that payment and apply it to the next one to create a snowball effect that will get your debts paid off even faster, saving you money in the process.
Make Money on Your Money
If your money is just sitting in a checking account, it isn’t working hard for you. Why not make a little money simply by having it!
Make your money work hard for you by:
- Opening a high-yield savings account
- Creating passive income
- Investing in the stock market
- Putting more in your retirement account
If you’re careful, you can even make money on your credit cards. If you know you can pay the card off every month, charging what you would have spent anyway can get you some great freebies like airline miles, or even cash.
One of the best strategies is also the simplest, yet hardest to follow—spend less money! It could mean something as simple as skipping the fancy coffee in the morning or something as complex as finding a more affordable place to live. Every penny counts!
Don’t think you’re doomed to continue living out your current financial situation. With the tips on this list, you can finally gain control of your finances and look forward to a brighter future.