Categories
Budgeting

How To Save Money On A Tight Budget

In this article we’ll discuss how to save money on a tight budget, including budgeting, side hustles, cutting spending and understanding economic cycles.

Americans are struggling financially right now because of COVID-19 shutdowns. Many people live paycheck-to-paycheck and have no savings. As a result, a sudden loss of employment caused them to face economic ruin or bankruptcy.

According to a recent CNBC article using data from SurveyMonkey, millions of Americans have lost their savings.

“Since the virus was declared a pandemic, 14% of Americans — up to 46 million people — said they’ve wiped out their emergency savings” -September 1, 2020 CNBC.com News Article entitled, “Nearly 14% of Americans have wiped out their emergency savings during the pandemic”

Higher Unemployment Due To COVID-19 Shutdown

The COVID-19 shutdown of 2020 turned out to be devastating like the American Great Depression of the 1930s. Workers who were laid off or lost a job from the COVID-19 fallout are in dire straits. Many people have had to borrow money from pensions or a 401(k) just to make ends meet. Others have had to file for unemployment or ask for government assistance.

Many people are struggling to pay rent. Some home owners have lost their home and many more are at risk of losing assets such as homes, cars and investments. There’s no doubt that this is a scary economic time for most Americans. And many people realized that they should have been thinking about how to save money on a tight budget earlier.

Learn the Secret from Thousands of Years Ago: Saving

But what if I told you that much of the economic suffering and devastation felt by most Americans today could have been avoided? There is actually a secret that your grandparents and great-grandparents knew that can help you be prepared in the future. It’s not some ancient wisdom or magical solution that only a few people know. In fact, the secret is actually knowledge that has been around for thousands of years.

Experts Have Discovered That Economic Events Happen in Cycles

The Seasons, the Planets and Human Life Itself Are Cyclical

Before we get to the secret to avoiding economic disaster and how to save money on a tight budget, let’s discuss more about economic catastrophe. Unfortunately, the American Great Depression and the COVID-19 shutdown of 2020 were catastrophic events. Yet, some very intelligent researchers have determined that much of what we experience in our lives revolves around cycles.

Investing In Commercial PropertyThe sun and the moon follow a cyclical pattern that is predictable. In addition, the earth’s movement through the universe and it’s relationship to other stars is part of a greater cycle. But here on earth, there are many more cycles. The life of a human being is part of a cycle. You are born, you become a youth, then middle aged, followed by elderly life and death. Our season are cyclical: Fall, Winter, Spring and Summer. Researchers have discovered that our economy is cyclical as well.

Economist Ray Dalio and the Economic Machine

Ray Dalio, an economics expert from Bridgewater Associates, has created some really intelligent free videos on understanding economic cycles. He also is the author of the book, “Principles.” Dalio is really good at simplifying economic ideas and helping you understand why things happen as the do.

The Secret to Winning in the Economic Cycle: Save Money

When life is cyclical, it simply means things go up and then they go back down. The pattern repeats itself in a cycle that goes on forever. Moreover, in the natural world, animals are aware of the cycle of the seasons. For example, squirrels have the natural instinct to bury acorns during the summer and build their nests to prepare for the bitter cold of winter.

Although humans no longer depend on instinct to survive, we can still use our higher brain function to make decisions. If we know that the economic cycle goes up and down, then sometimes we will have more money and other times we may have less money. Following this logic, it makes sense for us to save money during the times that we have more money. When we learn how to save money on a tight budget, we are better prepared to weather the storm of bitter economic times.

The Art of Saving Money

Warren Buffet Teaches That Saving Money Prevents You from Spending Money

Unfortunately, saving money is a lost art. Historically, people’s lives depended on saving money. If a natural disaster struck or just bad luck, people could fall back on the money they saved to stay alive. Today, life is easier. Credit is widely available to most people and we frequently borrow money for cars, houses and purchases on credit cards.

But, finding how to save money on a tight budget can be critical to your financial well-being for several reasons. First, learning to save money requires that you learn not to spend your money. Warren Buffet famously said that the most important rule of investing is “to not lose money.” The lesson is don’t spend all your money. Instead, save some money. Saving money is an excellent habit to learn and maintain.

Second, developing the discipline to find how to save money on a tight budget will give you the confidence to seize opportunities when they arise. When people live paycheck-to-paycheck, they waste their time struggling with bills, instead of focusing on future wealth creation. In addition, as your income becomes more limited in old age, you will depend on cash savings to pay for things like medical care and expenses.

Create a Budget

One of the best method for how to save money on a tight budget is to learn to budget. That is, it’s important to keep track of your money. And a budget helps you achieve that objective. Having a balanced budget means spending less of your paycheck. Preferably, you will have some money left over to pay off debt and save for the future. In short, everyone should budget, whether you are a large corporation or just one person.

Live below your means

Don’t Waste Money on Unnecessary Expenses, Such as Eating Out, New cars and Designer Clothing

In many cases, frugal living is the cornerstone of financial success. This simply means spending less than you make. A simple monthly budget can assist you in determining whether you are meeting your goal. In addition, learning to be frugal can help you find how to save money on a tight budget. For example, when you eliminate extra expenses that are unnecessary, that money can be used in how to save money on a tight budget.

Unfortunately, living frugally is not popular in the 21st century. Popular culture tells us what “normal” consumer behavior looks like. And it’s considered normal to go out and spend money at restaurants, on vacations and the like. In addition, it’s “normal” to buy a big house and drive a new car.

Cut Expenses and Control Spending

List Items to Remove from Your Budget: Memberships, Subscriptions, Etc.

No matter what kind of budget you have, it’s critically important that you cut expenses. Before you start your budget, begin finding areas in your life where you can make cuts. Cutting expenses will help you discover how to save money on a tight budget.

It is helpful to make a list of what expenses are needs and wants. For example, paying for electricity is needed; having a spa membership is a want.

In addition, you will also want to figure out ways to cut spending. This will help you save more money quickly. Ideas for Budget Items to Cut:

  • Memberships (Spa, Gym, Entertainment, etc.)
  • Subscriptions (Magazines, news, etc.)
  • Eating Out
  • Cable
  • New credit card spending
  • Traveling/vacations

Stop Using Credit Cards

If you are starting a budget, you probably have credit card debt. The problem with credit card debt is not the debt, it’s the interest. Every day that you maintain a balance on your credit card, interest compounds. Compounding interest works against you when you’re trying to pay off debt. Getting rid of credit card debt will assist you in discovering how to save money on a tight budget.

Save Money Every Paycheck

Put Aside 10-15% of Your Regular Income as Savings

One of the habits that you want to form that will help you reach your savings goal is to start saving each paycheck. Make it a habit to take 10-15% of each paycheck and save it. After a short time, you will realize that you don’t even miss the money.

First, make saving 10-15% of each paycheck easy by setting up an automatic money transfer to your savings account. For example, each time your paycheck is deposited into your checking account, have an automatic transfer set up that moves money into your savings account. Some people even have a savings account that is in a different bank to reduce the temptation of borrowing from the account.

Finally, saving a small portion of your regular earnings is far from a new concept. Financially successful people have been doing it for hundreds or thousands of years. Read The Richest Man in Babylon to learn more.

Always Keep an Emergency Fund

Unfortunately, emergencies happen to all of us. Having money for an emergency is critical. Many investment and debt consultants recommend that you start with $1,000.

Emergencies can come in many forms. Examples of emergencies you should be prepared for include medical issues, home repairs, car repairs, natural disasters, etc. Once you reach your goal of $1,000, start saving for the longer term. Some experts recommend having 3-6 months of salary saved for emergencies.

Saving for emergencies should probably be one of the first things that you do, even before saving for retirement. Make it a priority in your budget and you will rest better at night knowing you have prepared for the future.

Keeping Up with the Joneses

Don’t Pay Attention to What Others Are Doing: Focus on Budgeting

Don’t get caught up trying to keep up with the Joneses. Who are the Joneses? Mr. and Mrs. Jones are your neighbors who live in the big, two-story house. They just bought a new SUV and a new boat. The Joneses always seem to have flashy, new things.

It takes some discipline and habit changes, but in order to be successful at your budget, you must forget about what the Jones family is buying. Remind yourself buying new things prevents you from getting ahead and puts you further behind in debt. Moreover, what’s important is sticking to your budget so that later you can have financial security.

Finally, if you really want to know about the Joneses, let me tell you. They are in so much debt from buying all those new things that they will probably be asking you for money soon.

Increase Your Income

Great Ways to Earn Extra Money Include Seasonal Work, Side Hustles and Starting a Business

Some people who complete their budget may realize that they don’t have enough money to start saving. Perhaps all your money goes to bills each month, or you just have a lot of family and friends for which to buy gifts.

The best ways to make more money fast:

  • Sell Things You Don’t Need
  • Rent Out Your Room or Car
  • A Side Hustle job
  • Borrow Money (Last Resort)

One dirty little secret that successful people don’t often share about their success is how hard they work. Successful people often work 2-3 jobs, work long hours and work to do things that no one else wanted to do. Working hard at a side hustle may be one of the best how to save money on a tight budget.

It’s not glamorous to deliver pizzas or wash cars for money. However, sometimes to get ahead you have to swallow your pride and do what is necessary. I’m not suggesting that you do anything illegal to make money; on the contrary, there are plenty of legal jobs that will earn real money for you.

Start Your Own Business or Side Hustle

Having a side hustle Has become more common these days. Unfortunately, many people work a second job simply to make ends meet. But there’s no shame in working hard to get ahead. Common side hustles today include:

  • Uber/Lyft Driver
  • Food/Grocery Delivery
  • Dog Walking and Sitting
  • Babysitting
  • House Cleaning
  • Gig Economy Services (Fiverr)
  • Freelance Work Online
  • Tutoring
  • Wash and Detail Cars

Start Saving Right Now!

No amount of money is too small when it comes to saving, even if you can only save the change you have in your pockets. And, it’s never too late to start saving. If you can’t save enough to reach your goals, start saving anyway. Anyone who is determined to find how to save money on a tight budget can do it.

Furthermore, the more that you procrastinate, the more you put yourself at risk for the future. Therefore, it’s best to start saving today.

Read More:

What is Tier 1 Credit

10 Things to Know Before Starting a Budget

Debt Elimination

How Much Was a Dollar Worth in 1960?

The Best Budget App

Buyer’s Guide for Used Cars Drowning in Debt Why Airbnb is Successful

Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We do not endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals, and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, to help you make the best choice for you.

Categories
Money

How to Become a Millionaire With No Money

Learning how to become a millionaire with no money can be difficult. Often, when people consider what a millionaire is, they think of people like Brad Pitt (movie star), Elon Musk (inventor and investor) or Donald Trump (real estate tycoon). In fact, many of these examples have evolved from millionaires to billionaires over time. However, most millionaires live a simple, quiet life. The road to riches is not necessarily glamorous or exciting; In fact, becoming a millionaire requires sacrifice and discipline.

Guidelines for How to Become a Millionaire with No Money

Currently, there are over 18 million people in the United States who are millionaires. In fact, some of those millionaires probably live in your neighborhood. Perhaps your next door neighbor is a millionaire.

There’s a popular belief that millionaires attain their money the easy way: inheritance, winning the lottery or through criminal activity. The truth is that the majority of millionaires discovered how to save a million dollars. In the book, “The Millionaire Next Door”, by Dr. Thomas Stanley and Dr. William Danko, it is revealed that most millionaires surveyed were self-made. These men and women started from scratch, with little to no money, and worked hard at saving and investing.

Preview

  • Definition of a Millionaire
  • Learn How to Become a Millionaire with No Money
  • Learn How to Get Rid of Debt and Live Frugally
  • Learn How to Save and Invest Like Millionaires
  • Develop a Financial Plan and Start Early
  • Develop a Team Who Can Help You Grow Your Wealth

A millionaire is defined as a person who has a net worth of at least one million dollars. Net worth is calculated by subtracting your debt from your assets. For example, if you own a $400,000 home, a stock portfolio of $800,000 and owe $100,000 in debt, then your net worth is $1.1 Million ([$400,000 + $800,000] – $100,000 = $1,100,000).

When people think of what a millionaire is, they imagine people like Leonardo DiCaprio (movie star), Elon Musk (inventor and investor) or Donald Trump (real estate tycoon). However, most millionaires live a simple, quiet life. The road to riches is not necessarily glamorous or exciting; In fact, becoming a millionaire requires sacrifice and discipline.

As a result, we’ve developed some guidelines that will show you how to become a millionaire with no money. If you are able to follow these guidelines, financial success can be in your future.

Pay Off All Debt

Learning how to become a millionaire with no money starts with no debt. Most millionaires did not get rich by borrowing money. In fact, most people with a significant net worth avoid debt. They know that when you have debt, money is working against you. So, it’s important to pay down all your debt prior to taking the next steps. Later, you can make your money work for you, not against.

Create a Consistent Source of Income

Put Aside 10-15% of Your Regular Income for Investment

You don’t have to own your own business or be an entrepreneur to be a millionaire. There are many millionaires who are average people who work 9-5 jobs every day, just like you.

One of the keys to their success is having a consistent source of income. Every month, or each paycheck, they divert 10-15% of their earnings to investment(s). An example would be investing in a 401(k), Investment Retirement Account (IRA) or Real Estate. Year after year, your money will grow and work for you to create wealth.Weekly Options Strategies

Begin Saving Money

Saving Money teaches you the habit of not spending and allows you to take advantage of opportunities

Saving money is a lost art. And learning how to become a millionaire with no money starts with saving. Historically, people’s lives depended on saving money. If a natural disaster struck or just bad luck, people could fall back on the money they saved to stay alive. Today, life is easier. Credit is widely available to most people and we frequently borrow money for cars, houses and purchases on credit cards.

But, saving money is critical to becoming a millionaire for several reasons. First, learning to save money requires that you not spend all your money. Legendary investor, Warren Buffet, famously said that the most important rule of investing is “to not lose money.” So, don’t spend all your money. Instead, save some money. Saving money is an excellent habit to learn.

Second, saving money will give you the confidence to seize opportunities when they arise. When people live paycheck-to-paycheck, they waste their time struggling with bills, instead of focusing on future wealth creation.

Create a Budget

It’s important to keep track of your money. Learning how to become a millionaire with no money requires that you know where your money is at all times. And a budget helps you achieve that objective. Having a balanced budget means spending less of your paycheck. Preferably, you will have a significant amount of money left over to pay off debt and for investing. In short, every investor and business owner should budget, whether you are a large corporation or just one person.

There are many budget options online, including spreadsheets, mobile apps and even printable budgets. Check out our “Best Budget Apps” article for more information and recommendations.

Live below your means

Millionaires do not spend money on unnecessary expenses, such as eating out, new cars and designer clothing

In many cases, frugal living is the cornerstone of success for millionaires. This simply means spending less than you make. A simple monthly budget can assist you in determining whether you are meeting your goal.

Unfortunately, living frugally is not popular in the 21st century. Popular culture dictates what “normal” consumer behavior looks like. And it’s considered normal to go out and spend money at restaurants, on vacations and the like. In addition, it’s “normal” to buy a big house and drive a new car.

The reality for millionaires is that they don’t ascribe to normal behaviors. People with the millionaire mindset only purchase what is needed. They don’t buy new cars or fancy things. As a result, the extra money saved from this frugal behavior is put to work in investments.buying and reselling on Amazon

Develop a Financial Plan

Once you’ve developed the millionaire mindset, it’s time to create a financial plan. Write down the details of what you want to achieve. If your goal is to own one million dollars in real estate, then plan accordingly. Include details of how you will acquire money to invest and how it will be allocated. In addition, set a timeframe for when you expect to achieve your goal. Your budget will be an addendum to the plan. Finally, review the financial plan frequently and assess your progress.

Develop Good Habits

Good Habits Include Budget Control, Staying the Course, Investment Knowledge and Discipline

Developing millionaire habits is critical on the path to acquiring wealth. Once you’ve established your goals and your financial plan, you must implement good habits. Good habits include:

  • Budget Control
  • Staying the Course
  • Investment Knowledge
  • Millionaire Habits and Discipline

Budget control means that you operate under a balanced budget. Spending is controlled so that remaining cash flow is routed toward smart investments. Good investments are critical for converting thousands of dollars into millions of dollars.

Staying the course requires that you consistently repeat what you are doing, so long as you are successful. If something doesn’t work, it can be changed. But the power of earning from compounding interest is continuously investing money.

Being a good investor requires that you continuously educate yourself. You want to learn as much as possible about your investments. In addition, you will accrue knowledge and wisdom on different investment strategies over time.

Learning what has worked for other millionaires is the easiest and most secure strategy for success with money. Furthermore, millionaires get up early each morning and focus on their goals. Investing money is a priority to them and their focus is on earning and business. Many successful millionaires make time for self-development activities, such as exercise and meditation. And they make these habits part of their daily ritual.

Invest Early

The sooner you can get started on your millionaire journey, the better. For example, many millionaires credit their success not to windfall earnings, but to incremental investing over long periods. Compounding interest is a powerful tool that can work for you in growing your wealth.the principles of finance with a clear plan to financial success. We will give you a guide for how to get out of debt, save money and invest for retirement.

Grow Your Income

Maximize Your Income by Starting a Business or a Side Hustle

Once you’ve mastered budgeting and your debt is settled, you want to maximize the money that you earn. Furthermore, you will find that expenses remain almost the same from year to year, but increasing your income can have significant results. Earning more money means that your contribution to your investments will grow your wealth more rapidly.

There are many ways that you can improve your income. For example, start a small business out of your home. Explore what you like to do in your spare time and determine if you can make money doing it. For example, photography can be a hobby or a business.

Other sources of income can be part time jobs, weekend work, side hustles or even buying and selling things.

Final Thoughts: How to Become a Millionaire with No Money

Many Millionaires Operate a Business, Network and Work with a Financial Team

Learning how to become a millionaire with no money will not be easy. First, many millionaires reach their goal quicker by operating a small business. Next, owning a small business allows you to control how the company operates and take more profit for the extra labor you put in.

Second, maximize the networking that you do with others. Participate in conferences or just promote contact with like-minded people in your area. The network effect can have positive financial benefits for you. Don’t isolate yourself.

Finally, surround yourself with a financial team. Seek out a respected tax professional, attorney, business coach, etc. Sometimes an ounce of prevention is worth a pound of cure. Staying in good legal standing with state and federal regulations can help you grow. In addition, these professionals can save you money in the long term.

These guidelines are the simplest path on how to become a millionaire with no money. Want to learn more about saving and investing?

Read More:

Ways to Save Money on a Tight Budget

10 Things to Know Before Starting a Budget

The Best Budget App

How to Make $200 Fast

Best Budget Planner

Home Buying Power

Financial Planning Services

Value Investing Books

Wealth Building Cornerstones

Best Investing Books of All Time

How Much Savings You Should Have at 40

Why Saving Money is Important

Debt Elimination

Disclaimer: It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, to help you make the best choice for you.

 

Categories
Budgeting

Budget Planner for Beginners

Learn how to develop a budget planner for beginners, how to get organized, how to plan ahead, and save money incrementally to avoid too much debt.

Here are some tips for how making a simple budget and getting organized can help you save for a rainy day (or investing) and avoid using the credit card to pay for things. In addition, we show you how to save incrementally today so that you can pay cash for things in the future.

Budgeting

Understanding a Budget Planner for Beginners Can Help You Develop Good Habits, Learn to Save and Become Organized

The primary reason you need a budget planner for beginners is to create good money habits. Budgeting is one of the critical steps that can help you take control of your life and get ahead. In the process of taking control, we also prepare ourselves for better quality of life by having more money. Having more money means that you have more power to dictate the kind of life you want.

How a Budget Planner for Beginners Can Help You:

  • Improve your credit score
  • Save for emergencies
  • Save and invest for retirement
  • Stop wasting money and curb bad habits
  • Promote a healthy, meaningful lifestyle
  • Buy a new home or upgrade your existing home
  • Obtain financial freedom

How to Create a Budget: Step by Step

Determine Your Income, Expenses and Calculate Disposable Income

Having a balanced budget means spending less of your paycheck. Preferably, you will have a significant amount of money left over to pay off debt and save for investing. In short, everyone should budget, whether you are a large corporation or just one person.

The budget planner for beginners that we will be describing include how to create a monthly budget. Many people pay bills once per month and may get paid once or twice per month. In a simple example budget, you can create a column for expenses and a column for income. At the bottom of the page, you can total each column and the difference in the totals is either how much money you have left over or how much money you are short at the end of each month.budgetStep 1: Determine Your Income

Figuring out what your income is for the month is usually pretty simple. If you get paid every two weeks, then your income is the amount that gets deposited into your bank account. This is the amount that is left over after taxes are taken out. Make sure to account for each time you get paid in the month. If you don’t know what you get paid, you can look at your W-2 Tax form.

Step 2: Determine Your Expenses

Determining what your expenses are will take more time. There are several ways to determine how much you are spending each month. One way is to keep receipts and use bank statements to figure out what was spent each month. The second way to determine what you spend is to begin writing down each expense as it comes along during the month.

Fixed and Variable Expenses

As you begin tracking your expenses and determining how you spend, you will see that there are two types of expenses: fixed and variable. Fixed expenses are those that the amount paid never changes. For example, a mortgage or a car loan payment will always stay the same value, which makes planning ahead easy

On the other hand, variable expenses may vary each month. For example, your electric bill or the amount you spend dining out varies from week to week. With variable expenses, it is recommended that you calculate an average over several months and use the average for your budget.

Wants and Needs

Another budgeting consideration is wants versus needs. While learning to develop a budget planner for beginners, try to categorize your expenses into two groups: wants and needs. For example, a need is something like electricity or groceries. These are the things that you need to live.

In contrast, wants are the things that you pay for that may not be necessary. For example, wants can be things such as eating at restaurants, spa memberships and vacations. Moreover, you will look closer at your group of wants later when we make cuts to the budget.

Step 3: Put all the Budget Pieces Together

Now that we know what our expenses and our income are, we can add up everything to determine if we are over or under budget. The goal of having a balanced budget and developing a budget planner for beginners is so our expense column will be less than our income. For example, if your income is $2,000 per month and your expenses are $1,500 per month, then you have $500 leftover each month ($2,000-$1,500 = $500).

The $500 that remains each month is your disposable income. Typically, you want to have a plan for what happens to the disposable income; otherwise, extra money has a way of getting spent. Moreover, it is recommended that you save and/or invest this money. However, we will touch on that later.

Financial Planning and BudgetingCut Expenses and Control Spending

Budget Not Balanced? Remove Expenses (Wants) from Your Budget: Memberships, Subscriptions, Etc.

If you are having trouble finding extra money in your budget, it may be time to cut expenses that are considered “wants.” No matter what kind of budget you have, its vitally important that you cut expenses. First, start by finding areas in your life where you can make cuts. It is helpful to make a list of what expenses are wants and needs. For example, paying for electricity is required; having a spa membership is not.

Ideas for Budget Items to Cut:

  • Memberships (Spa, Gym, Entertainment, etc.)
  • Subscriptions (Magazines, news, etc.)
  • Dining Out/Restaurants
  • Cable Bill
  • New credit card spending
  • Traveling/vacations

Learn to Live Below Your Means

Reduce Bad Habits like Eating Out, New cars and Designer Clothing

It’s critical that you form good money habits using the budget planner for beginners. In many cases, frugal living is the cornerstone of financial success. This simply means spending less than you make. A simple monthly budget can assist you in determining whether you are meeting your goal. And these good habits can carry forward for a lifetime.

Unfortunately, living frugally is not popular in the 21st century. Popular culture dictates what “normal” consumer behavior looks like. And it’s considered normal to go out and spend money at restaurants, on vacation, etc. In addition, it’s “normal” to buy a big house and drive a new car. Having a full understanding of the budget planner for beginners will help you create a successful budget.

Financially successful people don’t ascribe to normal behaviors. Those who attain financial success only purchase what is needed. They don’t buy new cars or fancy things. As a result, the extra money saved from this frugal behavior is put to work in investments.

how to build wealth in your 30sBeware of Credit Cards and Debt

Credit Cards Can Create Painful Financial Lessons for You by Overspending and Interest

One dangerous lesson to learn is overspending on credit cards. In the modern era, gaining access to credit is far too easy.

Having a credit card can be a double-edged sword for anyone. First, using a credit card can be a learning tool about how debt works. In addition, you can learn about paying bills each month. However, there’s a risk that comes with credit: overspending. When you spend more money than is allowed on the credit card, or spend more than can be paid back, it can be a painful lesson in finance. However, sometimes difficult lessons can be valuable and last a lifetime.

If you make a mistake with a credit card, or overdraft an account, it can become a learning tool. Use the situation as an opportunity to learn from the mistake and implement better budgeting habits. Everyone learns the lesson of debt and compounding interest when we have to pay back what was borrowed, plus interest.

Maintenance: Review Weekly/Monthly

Review the Budget Weekly to Assess Goals and Make Adjustments

It’s important to review your budget on a weekly basis to determine if you are meeting your goals. Are you sticking to the spending requirements that you set in your budget planner book?

Revisiting your budget on a weekly basis will allow you to determine if the budget is working. In addition, you will be able to adjust it where needed.

You don’t want to cheat on your budget, but at times you’ll need to update expenses. In addition, you are compiling information over a monthly time period. As you gather this information, you will learn more about your own habits and how you can improve your personal budget.

For example, perhaps you spend less on fuel every week then expected, but you forgot to include the toll fees on your way to work each day. You will make adjustments to your budget accordingly.

Set Goals: Learn to Save Money Every Paycheck

Put Aside 10-15% of Your Regular Income for Investment

One of the habits that are important related to money management for you is learning to save some of each paycheck or from their allowance. Make it a personal goal to save 10-15% your paycheck each month. After a short time, you will realize that you don’t even miss the money.

Make saving 10-15% of each paycheck easy by setting up an automatic money transfer to their savings account. For example, each time their paycheck is deposited into the checking account, have an automatic transfer set up that moves money into the savings account. Some people find it helpful to have a savings account that is in a different bank. This reduces the temptation to spend savings.

Saving a small portion of your regular earnings is far from a new concept. Financially successful people have been doing it for hundreds or thousands of years. Saving can be a great tool when it comes to money management for you. Read The Richest Man in Babylon to learn more.

Always Keep an Emergency Fund

Unfortunately, emergencies happen to all of us. Having money for an emergency is critical. Many investment and debt consultants recommend that you start with $1,000.

Emergencies can come in many forms. Examples of emergencies you should be prepared for include medical issues, home repairs, car repairs, natural disasters, etc.

Saving for emergencies should probably be one of the first things that you do, even before saving for retirement. Make it a priority in your budget and you will rest better at night knowing you have prepared for the future.

Develop Good Habits and Learn Investing

Good Habits Include Budget Control, Staying the Course, Investment Knowledge and Discipline

Developing good money habits is critical on the path to acquiring wealth. Once you establish goals and a budget plan, you must implement good habits. Good habits include:

  • Budget Control
  • Staying the Course
  • Investment Knowledge
  • Strong Habits and Discipline

Budget control means that you operate under a balanced budget. Spending is controlled so that disposable income is saved or invested. Learning to invest now can make life easier for young people as they move into middle age.

Staying the course requires that you consistently repeat what you are doing, so long as you are successful. If something doesn’t work, it can be changed. But, the power of earning from compounding interest is continuously investing money.

Take Control Today – Start Budgeting!

If you have read this far, then you are clearly here for a reason. You are determined to make a change in your life and your behavior. A budget can be a great tool to assist you in being successful in life. Every day that you procrastinate to start a budget is just delaying your future success.

Wrap Up: Budget Planner for Beginners

As you can see, learning how to create a budget planner for beginners is not that complicated. Learning to budget simply requires developing a plan and sticking to the plan. You must also be organized and committed to the plan. Ultimately, learning our method for making a budget planner for beginners is a clear, simple way to be successful with money.

 Read More:

The Best Budget App

Why Saving Money is Important

Financial Planning Services

Value Investing Books

10 Things to Know Before Starting a Budget

Wealth Building Cornerstones

Best Investing Books of All Time

How to Become a Millionaire from Nothing

How Much Savings You Should Have at 40

Why Saving Money is Important

Debt Elimination

Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We do not endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, to help you make the best choice for you.