The Sunday Mail
Check your interest rate
Q: Which loan should you pay off first?
A: The one with the highest interest rate.
Q: Which savings account should you open?
A: The one with the best interest rate. Bottom line here: Paying attention to interest rates will help inform which debt or savings commitments you should focus on.
Track your net worth
Your net worth—the difference between your assets and debt—is the big-picture number that can tell you where you stand financially. Keep an eye on it, and it can help keep you apprised of the progress you’re making toward your financial goals—or warn you if you’re backsliding.
Take a daily money minute
This one comes straight from LearnVest Founder and CEO Alexa von Tobel, who swears by setting aside one minute each day to check on her financial transactions. This 60-second act helps identify problems immediately, keep track of goal progress—and set your spending tone for the rest of the day!
Allocate at least 20 percent of your income toward
financial priorities
By priorities, we mean building up emergency savings, paying off debt, and padding your retirement nest egg.
Budget about 30 percent of your income for lifestyle spending
This includes movies, restaurants, and happy hours—basically, anything that doesn’t cover basic necessities. By abiding by the 30 percent rule, you can save and splurge at the same time.
Adopt a spending mantra
Pick out a positive phrase that acts like a mini rule of thumb for how you spend.
For example, ask yourself, “Is this (fill in purchase here) better than Vic Falls next year?”
Make bite-size
money goals
One study showed that the farther away a goal seems, and the less sure we are about when it will happen, the more likely we are to give up. So in addition to focusing on big goals (say, buying a home), aim to also set smaller, short-term goals along the way that will reap quicker results—like saving some money each week in order to take a trip in six months.
Banish toxic money thoughts
Hello, self-fulfilling prophecy! If you psych yourself out before you even get started (“I’ll never pay off debt!”), then you’re setting yourself up to fail. So don’t be a fatalist, and switch to more positive mantras.
Get your finances —and body— in shape
One study showed that more exercise leads to higher pay because you tend to be more productive after you’ve worked up a sweat. So taking up running may help amp up your financial game.
Plus, all the habits and discipline associated with, say, running marathons are also associated with managing your money well.
Create a financial calendar
If you don’t trust yourself to remember to pay your quarterly taxes or periodically pull a credit report, think about setting appointment reminders for these important money to-dos in the same way that you would an annual doctor’s visit or car tune-up. – The Muse (Online).
