Your Finances Can Be Better This Year With These 2 Simple Steps

I am a big fan of personal finance knowledge. It is without a doubt that my life could have been better today if I had all the knowledge I have today when it comes to money management and wealth-building. That is why I’d like to share with you 3 easy steps you can take today to improve your personal finance.

Are those steps that simple? Well, you’ll see.

Step 1: Set up your yearly expenses. We all have expenses. Whether you have a big or small family with 2 people, there’s a good chance that you’ve got quite a few things to be paid monthly. These expenses could be fixed or fluctuated. Fixed expenses are those that are the same amount month-to-month. For instance, if you have a montage or car payments, they will always be the same. So, what I need you to do is listed all your fixed expenses and multiply each one by 12 to find the yearly total. For those expenses that vary month-to-month, come up with an average amount per month and multiply by 12 as well.

Step 2: Open a new savings account. This new account could be for this emergency fund you’ve always wanted to set up or to buy your new car with cash or for this vacation you’ve always wanted to take. Just set up a new account and set an automatic transfer to this account. You can do as low as $75 per month. Several banks give a bit more than the regular .00000001 percent —or probably not all those zeros but want to show you that you can get a bit more from your savings then the conventional big banks like Chase and Bank of America. Some high yield savings banks/accounts you could use, such as Capital One 360 or American Express Personal Savings.

Plan your month financially and stick to the plan. I know it’s hard to hold to our plans but try and try again. I’m still a work in progress, but guess what? When you write things down, your mind is subjected to adhere to readjust. As such, you’ll be able to achieve much more than you ever thought you could do.

That’s it for now.