Posted on February 14, 2022 Last Updated: February 14, 2022
Financial Success is Not Accidental
Many people think that to be financially successful, one needs to be born into money or get lucky. However, those assumptions are far from the truth! Financially successful people come in all shapes and sizes and from all walks of life. The one thing that they have in common is that they manage their money effectively.
How Can I Manage My Money Effectively?
Effective money management largely stems from creating a budget, sticking to it, and cutting back on certain things when needed. Financially successful people spend their money carefully and save a good portion of the rest. At the end of the day, self-control, and being honest with yourself about what are needs versus wants is key when it comes to making and sticking to a budget.
How Do I Create a Budget?
Creating a budget is incredibly simple, and you need two things to get started – your income and expenses. Understanding how much you make each month and subtracting your expenses is an oversimplified definition of a budget. To get started, create a budgeting worksheet and start plugging in your numbers to see where you end up. The key to budgeting is managing where your money goes each month, and then saving or investing whatever is left over.
What Next?
Once you’ve got your income and expenses down, take a moment to compare them, and ask yourself some questions. Are there any bills that you could save some money or are there areas where you may be overspending? Are you paying for things that you don’t use anymore? Can you get cheaper insurance or a better interest rate on a loan? Chances are, you answered yes to at least one of those questions, so start with those expenses and begin cutting back to free up money each month.
Saving and Investing
Now that you’ve got your monthly budget tightened up, you should find yourself with some savings! The temptation is to find other things to spend that money on, but a smart budgeter will look to either pay down debt or put those funds into a savings or investment account. If you stick to your budget and consistently save over the years, you will find yourself better prepared for the future.
Save with KEMBA
KEMBA offers members access to a number of ways to save money. Balance transfers to a lower-rate credit card refinancing a home mortgage, student loan, or auto loan are just a few ways to reduce your monthly expenses. We also offer competitive savings account products such as interest-bearing savings and money market accounts. To learn more about how KEMBA can help you save money, contact our dedicated local associates at 614.235.2395 and select Option 4.