Written by @kealaniashton
Financial standings for anyone can be difficult. Regardless of the amount you earn, or expenses you have, a system of financial balance is necessary. Here are some tips to map out your money movements.
BUSINESS VS. PLEASURE
When it comes to financials, its always business. The only pleasure is in earning a profit, which after expenses can sometimes be fairly low. This is why budgeting is necessary. Budgeting forms a cycle to save and invest. To break the “paycheck-to-paycheck” lifestyle, create multiple sources of income. Divide what are necessary expenses vs. pleasurable expenses. Take care of necessary first, then set aside percentages to direct towards investments. Many people are not knowledgeable or trusting about what to invest in, so they end up spending. If you are unsure, then save it. Learn to be smart about your “leftover” cash.
Keep your money in different places. Most people put all of their money in one place. One way in, one way out financials, doesn’t leave much direction. Create and emergency fund, a savings pot, a primary checking. Having an internet based account, like PayPal, is also beneficial. This can help manage online shopping and selling currencies.
MORE MONEY, MORE PROBLEMS
We all know the saying “more money, more problems”, and unfortunately this can be true. However, it doesn’t have to be this way. Only one person should have access to your financials, YOU. Unless you are dealing with complicated numbers, then a financial advisor/accountant may be necessary but ultimately no one should be in charge more than you. When it comes to money, people sometimes mix feelings and family into it. This can complicated things and cause an ordeal of stress and feuding. Its important to remember that you cannot trust anyone with money. Its natural to believe that people, especially family and friends, have our best interest at heart, but everyone is capable of error. Sometimes larger incomes create motives and ideas that family and friends initially never had, so when the resources are there so is the temptation. People start to rely on you to provide when they know you have it. You’re not obligated to financially support anyone, but if you chose to then you should be in control. Your money is not a pool of riches for everyone to swim in.
UNDER THE TABLE
Some of us have side jobs or weekend under the table gigs. Generally, when we have one solid source of income the “under the table” earnings become spending cash. However, a smarter way to manage these earning are by depositing them into a bank account. Then set up a PayPal account. Now, you can bill yourself (small fees may apply) and with this you will have successfully created a business out of your under the table earnings. Those payments are earnings to you from you that you can use to prove income for multiple situations. For example, you want to rent an apartment, now you can show income via your “internet based business”. This is beating the system.
Obtaining financial freedom begins with your earnings and how you manage them. Many Americans are in debt and handle their debt two ways. One by earning to routinely pay off debts out of panic, or two, by ignoring debts and dodging collectors until they climb with interest and effect credit. But there is another way, -budgeting debt.
The same way you budget your bills, (rent, car note, insurance, food ..) you can budget a division of your debt. Paying small, timely amounts to your debt will keep you afloat in your debt consolidation. Meaning, you are not a working slave to your payed dues but you are also not neglecting them either. Calculate a percentage of your income that is reasonable to pay off these portions.
In gaining financial freedom, remember to be disciplined. Its ok to treat yourself, just budget it in first. Buy a separate calendar to mark only with financials. This divides what you are doing, with how you are affording to do it.
© Alwayz Therro