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How to Become an Expert at Managing Your Finances

Finance

It isn't always easy to stay on top of your finances, especially when you have developed unhealthy spending habits over the years. However, as you begin to realize the many benefits of having healthy finances, it can become something you want to make a conscious effort to improve. When your finances are in a good place, you often have access to better opportunities whether it be a mortgage loan, greater credit line or business loan. On that note, here is how you can become an expert at managing your finances in case you need a few tips.


Learn to Use Technology

The good thing about managing finances in the technological age is that you don't have to do it alone. There are so many apps available that will help you pay bills on time and track your expenses. For instance, some apps force you to live within your actual income and tell you what to do when you need to balance your budget.

If you need an app that will help you get better at saving, then some will set aside your spare change for you. Also, don't be afraid to use more simple tools such as your smartphone calendar to set reminders about payments if you don't automate them.

Seek Legal Advice

Sometimes, being an expert at something means understanding that you can't possibly know it all. This is why you have professionals around you that can help fill in the gaps where you're lacking. Consider hiring a legal firm to help with any challenges that are beyond you. Lexington Law is a good firm as they could help remove negative items from your credit report. Read this Lexington Law Review (Our #1 Credit Repair Service of 2019) to find out more about how they could help improve your finances.

Prioritize Learning

You can't do better than what you know when it comes to managing finances. You should, therefore, invest your time in learning more about finances and how to manage them. Think about what your goals for your finances are and what knowledge gaps you need to fill.

For example, if you want to invest in the stock market so that you can improve your net worth, then you may need to learn more about investing to do so successfully. To boost your knowledge, try reading articles on credible blogs that share finance information from professionals. Also, be weary of content from finance-driven companies as it could be biased.

Work on Growing Your Income

As a self-proclaimed finance guru, you know that the more sources of income that you have, the better. Work on increasing your streams of income so that you have more money to meet your targets whether it's to save for a property or put larger sums towards retirement. One way to do so would be by getting extra income by doing social media marketing for businesses or creating tutorials on YouTube. If you own a property, renting out rooms is a great way to make passive income.

Live Within Your Means

It can be difficult to live within your means when you live in a society that is always presenting you with things to buy. However, being more conscious about the things that you purchase could help you realize that most are wants rather than needs. To live within your means, always take time to think about a purchase as opposed to impulse spending. You should always get good at bargain hunting as many times you can find items of similar quality at a cheaper price.

Learn How to Manage Debt

Debt doesn't have to be a bad thing if you understand how it works and how to manage it. It can be a tool for credit building when you understand the fundamentals. For instance, if you take out a loan or credit card, always be mindful of your interest rates.

By paying the amount of money you borrowed back in full before the due date, you won't have to pay interest on what you borrowed. If you can't pay back in full, paying more than the minimum payment will ensure you incur less interest. For the most part, the secret to good debt management is never spending more than you can afford to pay back.

Managing finances is a life skill that can help improve your quality of life. By following the mentioned tips and taking your finances more seriously, you're more likely to master the art of healthy finances.

3 Min Read
Lifestyle

Help! Am I A Fraud?

The Armchair Psychologist has all the answers you need!


Help! I Might Get Fired!

Dear Armchair Psychologist,

What's the best way to be prepared for a layoff? Because of the crisis, I am worried that my company is going to let me go soon, what can I do to be prepared? Is now a good time to send resumes? Should I save money? Redesign my website? Be proactive at work? Make myself non-disposable?

- Restless & Jobless

Dear Restless & Jobless,

I'm sorry that you're feeling anxious about your employment status. There are many people like yourself in this pandemic who are navigating an uncertain future, many have already lost their jobs. In my experience as a former professional recruiter for almost a decade, I always told my candidates the importance of periodically being passively on the market. This way, you'd know your worth, and you'd be able to track the market rates that may have changed over time, and sometimes even your job title which might have evolved unbeknownst to you.

This is a great time to reach out to your network, update your online professional presence (LinkedIn etc.), and send resumes. Though I'm not a fan of sending a resume blindly into a large database. Rather, talk to friends or email acquaintances and have them directly introduce you to someone who knows someone at a list of companies and people you have already researched. It's called "working closest to the dollar."

Here's a useful article with some great COVID-times employment tips; it suggests to "post ideas, articles, and other content that will attract and engage your target audience—specifically recruiters." If you're able to, try to steer away from focusing too much on the possibility of getting fired, instead spend your energy being the best you can be at work, and also actively being on the job market. Schedule as many video calls as you can, there's nothing like good ol' face-to-face meetings to get yourself on someone's radar. If your worries get the best of you, I recommend you schedule time with a qualified therapist. When you're ready, lean into that video chat and werk!

- The Armchair Psychologist

HELP! AM I A FRAUD?

Dear Armchair Psychologist,

I'm an independent consultant in NYC. I just filed for unemployment, but I feel a little guilty collecting because a) I'm not looking for a job (there are none anyway) and b) the company that will pay just happens to be the one that had me file a W2 last year; I've done other 1099 work since then.

- Guilt-Ridden

Dear Name,

I'm sorry that you're wracked with guilt. It's admirable that your conscience is making you re-evaluate whether you are entitled to "burden the system" so to speak as a state's unemployment funds can run low. Shame researchers, like Dr. Brené Brown, believe that the difference between shame and guilt is that shame is often rooted in the self/self-worth and is often destructive whereas guilt is based on one's behavior and compels us to do better. "I believe that guilt is adaptive and helpful – it's holding something we've done or failed to do up against our values and feeling psychological discomfort."

Your guilt sounds like a healthy problem. Many people feel guilty about collecting unemployment benefits because of how they were raised and the assumption that it's akin to "seeking charity." You're entitled to your unemployment benefits, and it was paid into a fund for you by your employer with your own blood, sweat, and tears. Also, you aren't committing an illegal act. The benefits are there to relieve you in times when circumstances prevent you from having a job. Each state may vary, but the NY State Department of Labor requires that you are actively job searching. The Cares Act which was passed in March 2020 also may provide some relief. I recommend that you collect the relief you need but to be sure that you meet the criteria by actively searching for a job just in case anyone will hire you.

- The Armchair Psychologist