Thursday, April 20, 2017

Small Money Moves That Can Have a Big Impact

Small Money Moves That Can Have a Big Impact
When it comes to our personal finances, we are always looking for ways to increase our income when times become difficult. However, we never stop to consider what our income can do for us. If you are frustrated with how your finances are, take a look at some of the small money moves below that can make your money work for you.

1. Develop and Adhere to a Savings Plan

You will never be able to achieve financial freedom if you have no savings or if you keep borrowing from your current savings account. Develop some strict saving guidelines for yourself and stick to them. Whether your plan is to save every $5 bill you come across or to save $100 each month, set that money aside and forget about it. A savings account should only be touched if you are in a severe financial emergency. Otherwise, rely solely on the money in your checking account to pay for necessary expenses.

2. Invest Your Money

For those who do have a savings account, investing is the next step to achieving financial freedom. Some good investments for beginners include mutual funds, bonds, retirement accounts, and even investing in a savings account that pays interest on the money that you deposit. Before you invest in anything, carefully research what you are investing in and decide whether or not it will be a good use of your money. Plenty of people are tricked into investing money in things that may never yield a profit or return their money.

3. Eliminate Your Debt

Many people will develop a financial plan without taking their debt into consideration. Without eliminating your debt, you will never be able to grow your money freely. Before taking any course of action that requires investments, make sure that you have examined all of your debts and that you have developed a plan to pay them off. Ignoring debts or paying less than you should be could create more problems for you down the road.

These are only three small money moves that can have a big impact on your financial situation. If one of them doesn't seem right for you, or if you have accomplished all three tasks and are looking for further ways to grow your money, there are a variety of resources online and offline that will help you to become financially healthy.

David Milberg is a financial analyst from NYC.

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