4 Effective Tips for Being Financially Savvy

October 3, 2021March 3, 2023 Sono

Many people have difficulty understanding money. In fact, less than thirty percent of Americans consider themselves financially healthy.

Let’s go through our top tips for being financially savvy.

Table of Contents

1. Make A Budget

It may sound boring and useless, but making a budget and sticking to it is the best way to get on the path to financial literacy. Start by quantifying exactly how much you make every month (after taxes).

Then, go through all your necessary expenses. This will ensure you don’t overextend yourself, so you can keep your debt levels down. Keeping careful track of your finances is an important part of improving your financial wealth.

2. Save More Money

Setting up a regular amount to save each month will help you gather money more quickly. You can set up the auto-deposit function on your bank account to make sure that you never miss a month. Set goals for yourself to save each year, so that you can continue working towards your goals.

3. Invest (But Do It Right)

Trying to make more money? You’ll have to learn to invest. But, it’s important to do it right. You can look into short-term investments or longer-term investments.

Some short-term investments you might want to consider include treasury bills, money market accounts, certificates of deposits, and bond funds.

Long-term investments you may want to add to your plan include real estate, annuities, some types of bonds, mutual funds, peer-to-peer lending, and tax-sheltered retirement plans.

Those who are looking for something a little more experimental may want to consider trying out investment apps like Robinhood, or cryptocurrency like Bitcoin. However, it’s ideal to make sure you have a good financial backing before you start experimenting â€” you don’t want to lose money that you don’t have, after all.

If you’re struggling to make the right decisions for your money, check out bottofinancial.com for the advice you need.

4. Pay Off Your Debt

Debt can be a weight on your credit (and on your mind). So, it’s important to pay off your debt, and do it right. Some of the different types of debt you may be struggling with include:

Credit card debt
Student loans
Mortgages (For example, for your house)
Car or motorcycle loans
Tax debt
Payday loans or cash advance loans
Loans issued for particular instances, like medical emergencies or vacations

Ideally, you should talk to a financial advisor about the best strategies for paying off your debt. It sounds counter-intuitive, but simply paying all your debt off straight out can actually cause you further problems with your credit.