As Halloween approaches, you might start to get spooked by the ghosts and ghouls popping up in your neighborhood; but if there’s one thing you shouldn’t let haunt you, it’s the ghosts of finances past.
We all make mistakes when it comes to managing our money, but the best thing we can do is to learn from them. So on this All Hallow’s Eve, fight your financial fears and specters from the past head on with these scarily good tips for managing your finances:
- Understand Your Money: You’ve worked hard for that paycheck, so it makes sense that you should understand where it’s going and why, right? If you don’t, start tracking your expenses – from student loans to 401k contributions – to understand your cash flow and how it affects your budget.
- Make a Plan for Your Debt: Paying down your debt can be as scary as the monster who lived under your bed when you were a kid. But if you tackle that monster head on and make a plan to manage your finances moving forward, your debt will start to decrease right before your eyes.
- Save – for Different Reasons: Saving, no matter if it’s for retirement, your children’s college fund, fun, or a rainy day, is one of the most important financial tools to have in your arsenal. If you’re young, start early – before you know it, contributing to savings will become second nature.
- Don’t Live Above Your Means: Sometimes it’s difficult to live below your means. Overspending, however, can quickly put you in debt. If you’re looking for a little extra cash, consider cutting costs or opening a side business – but no matter what, always strive to live within your means.
Remember saving for a rainy day? In times of emergency or great need, this rainy day or emergency fund is what you tap into. And when worse comes to worse, those savings can sometimes serve as your lifeline and the stash of cash that can bring you back to life – Frankenstein style.