Staying on top of your financial records is important in normal times. It’s even more important during a global pandemic. Many people are out of work and are unable to keep up with their financial records.
Even if you’re one of the lucky ones whose finances aren’t in danger these days, you should still learn some tricks to keep your finances straight. If you want to learn five great ways to stay on top of your finances, read below.
1. Understand Your Income
You might be thinking, what does that even mean. Understanding your income is more than simply knowing how much you make each week, month, or year.
Understanding your income is knowing how far it will get you after each payday. Also, knowing what you can and can’t buy without compromising your financial life and hurt to your personal life.
You should know how much you can spend while saving something each month for the future or any surprises or unforeseen circumstances like major surgery or your car goes to crap all of a sudden.
Things like that happen in life, and the better you manage your finances and understand your income, the better prepared you’ll be when surprises happen.
2. Keep Records
Whether you’re an old-school person who likes to write everything down or keep a notepad or are more of a digital person, you need to keep records.
If you’re old-school, keep a separate notebook that you only use for financial bookkeeping. Also, keep it handy and out in the open if you can so you don’t put off keeping records and forget about them.
That’s the most common mistake people make regarding keeping business records or personal spending habits. Keep every receipt, even if it’s for a tiny amount of money.
If you’re more of a digital person, you can find several apps for your phone or business bookkeeping software for your computer. Check out apps and software like this paystub software Quickbooks or Wave.
3. Put Money Away for Savings First
After you get paid, the first thing you should do is put whatever amount you’ve designated right into your savings account.
If you don’t put money away for a rainy day, you need to start right away. Even if it’s $10 a week, trust me, this can save your life someday.
4. Plan Out Meals
This is a big step to making sure you stay on top of your finances. Eating out at restaurants all the time can really add up. You can save thousands a year by eating at home and bringing your lunch to work.
Sure, it’s okay to go out for dinner once a week and maybe meet friends for lunch on the weekend, but keep it to a minimum and your bank account will thank you for it.
5. Allowance
You should give yourself an allowance every week.
This will help you plan grocery store trips, trips for necessities like toiletries, and help you figure out when you can splurge a bit. Life needs to still be fun while being responsible.
Rock Your Financial Records
Now you’ve got five great tricks to rock out with your financial records. You’re ready to save money for the future and be prepared for financial emergencies. You’ll also have a little bit of fun with your allowance.
If you liked these tips, check out our Business Entrepreneur Plan blog for more financial tips.
