In light of the continuing global crisis….3 steps to improve your money management

After the long repercussions of the economic crisis caused by the outbreak of the Corona epidemic ... here are some important steps that will help you manage your money.

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Money management in the best way is what anyone strives for at this time; it is at the beginning of each year, personal finance experts advise on how to make the most of your money by focusing on some basics such as: determining the budget for expenses, paying yourself first, creating an emergency fund, and saving for retirement.

But Jane bars, said in a report published by “Fast Company” magazine American, this year seems quite different under the Corona B outbreak of social unrest and widespread, making the usual personal finance tips seem useless.

The repercussions of the economic crisis have affected everyone in unimaginable ways. In the face of mass layoffs, disease, and sudden deaths, the areas of prohibited personal finance are often more important than ever, and regardless of your monthly income level, there are some points that you must consider to ensure that your money is well managed even in times of stress.

Know your data

The writer stressed the need to devote some time to identify your financial resources. Perhaps the most important lesson that can be learned from last year is that we should not take anything for granted, so you should create a necessary reference for 2021 and define goals from there.

Where do I start? Make sure that you have access to all of your financial accounts, bank accounts, credit cards, and investments, and this includes knowing the logins and passwords for each account and being easily accessed, and if you cannot personally access your data, regardless of whether you share the login data with a partner or With other people, you have to make this “new” decision in this new year.

It is imperative to take some time to identify all of your finances

Then, check your bank balances weekly or monthly and determine how much money you are earning and spending. Set simple, measurable goals that will provide you with a few wins every day, month, or year. These goals can be as small as increasing your savings by a hundred dollars a month or allocating an additional $ 20 from each paycheck.

Review decisions

Once you have identified your finances, think about the changes that could be brought about in practice, and one of the most important things you need to understand is “how much money you really need” to cover your expenses, from planning for the worst-case scenarios that may occur to positive outcomes such as how savings are allocated. New.

You can start from your “fixed” expenses such as subscription fees. Do you know how many subscription services you have subscribed to? You might be surprised at the number of subscriptions that charge you a month, from live streaming services to meal plans and exercise regimens.

Money management

For this reason, you should check them and cancel subscriptions that you do not use or those that have subscribed twice by mistake; this could save you over $ 50 a month.

Other small changes that may significantly impact your money include eating out and using food delivery services. Combine your last 30 or 60 days of spending with how much money you spent eating out, and you’ll be surprised at the result. Cutting out one or two meals at a restaurant per month would save you between $ 30 and $ 40 a month or between $ 400 and $ 500 a year.

Protect your family

Once you have determined your finances, you now know what you need to protect. Life insurance may seem a bad omen for the start of the new year, but it is really a gesture of love for the people you care about, and the insurance policy will not cost you more than your monthly subscription to the live streaming service.

Indeed, this is not entertaining, but it will be significantly more beneficial, so invest at least $ 10 or $ 15 per month in life insurance to protect your family and their future.

The year 2020 was difficult, but there are a lot of things to be optimistic about in 2021; knowing your financial data, rethinking your decisions, and investing in protecting your loved ones, will help you face the chaos and manage your money well.

Source: American Press

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