Run The Money
Follow Run The Money

12 Ways To Understand Money A Little More Each Day

  • April 15, 2021

If you're reading this, I'm earning money in some way. I was compensated with money and/or product. Thanks for helping to feed my family. I also may have a financial interest in companies named. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not an accountant, lawyer, doctor, fitness expert, or nutrition specialist. So, talk to a professional before acting on anything you read, watch, or listen to below. Get your own advice and do your own research. Email me at [email protected] with questions.

In this life, we all need to understand that money is seriously important. We all have priorities in life and some will be different from others. One constant, however, that hangs over all of us is money. Lots of people see money as no object because they like to focus on how they live their lives – that’s respectable, but the majority of people usually end up stressing out of it later on in their lives. Without a good grasp on money and our collective financial situations, we would be in a huge mess.

You do not by any means need to become a financial expert, but it helps to be competent with regard to your money. If you can do this, then you’ll be in a much better place going forward. You also won’t live most days checking over your shoulder. You’ll go to sleep at night a lot more content and you won’t wake up with it being the first thought you have. Financial anxiety isn’t helpful as it literally never goes away until you solve the problem fully. 

So, what can you do to ensure that your money troubles go away? Well, you can learn more about it and fully get to grips with the entire financial world. As we said before, you don’t have to become a guru, but it helps to know what you’re talking about and how everything operates. Here are a few ways you can get into such a groove: 

Plan Out Your Finances From Here On

If you have a good idea of what you’re spending and what you think you’ll look like over the course of the next few months, then you’ll slowly begin to learn about your own personal financial situation going forward. When you don’t really check out what you’re doing, it’s easy to become completely oblivious. Go through your incomings and outgoings over the past few months so that you can get a look at how healthy your financial life is. A financial plan is excellent for preparing for the future and getting a general understanding of how things are. 

Take A Look At Where You Might Be In Five Years  

Living every day and taking each day as it comes matters a lot, but you should always think of the long-term future every now and again, too. If you think about your life in five years’ time (or even ten years), then you’ll likely think about how things will be financially. You’ll have all kinds of ideas and you’ll picture how life will be – a lot of those things will depend on your financial health and security. This would then prompt you to focus heavily on the money you have in your account and the money you’ll hope to make as the years tick by. Use the long-term future as a big motivator for learning more about money. If, right now, you aren’t as knowledgeable as you’d like to be, then perhaps this will kick you into gear somewhat. 

Start Up A Business Or Side-Hustle

If you have something as significant as a business or money-making project to deal with, then your mind and your thoughts will be fixed on your finances. You’ll pay a lot more attention to this side of life because it’s so essential. It goes without saying that entrepreneurs are financially literate, and you’ll likely be a part of this community. You’ll work with accountants and bookkeepers in order to balance the books properly – and you’ll likely pick up a few tips and tricks along the way. If you’re completely oblivious now, then you won’t be in a year or two’s time with this kind of work. 

Keep A Log Of Your Every Financial Document You Have 

If you still have old statements and documents, then that’s great. Fortunately, you can get lots of information online, so you don’t have to worry about hoarding pieces of paper. Keep a log of things you spend and information regarding your finances, though, because it’ll help you to understand more and more about your financial life. Don’t just throw some pieces away thinking that they’ll be useless. If you get into the habit of taking the financial aspects of your life seriously, then you’ll get used to it and make it a normal part of life. 

Create Goals And Know Target Things You Want Financially 

When you have something to work towards, you become a lot more clued in and focused. If you choose to set a particular target regarding the amount in your bank account, the likelihood is that you’ll push for it to come to fruition. Think about creating goals and beating them. The sense of accomplishment is great and it encourages us to do it more. We mentioned having long-term goals in mind, and writing them down brings them to life. Think about a few short term goals like limiting spending each month, too. Perhaps consider removing a few expenses that are wholly unnecessary at this stage.

Learn More About The Newer Forms Around

It’s not just about the currency that has always been anymore. The cash in your hand and the figure in your bank account used to be the only things that we're worried about – now there is a new player in the game. Take cryptocurrencies, for instance. Over the past decade or so, the likes of bitcoin and plenty of others have become very popular. The chances are that they’ll become even more so due to the fact that we do most things online. This doesn’t have to be the biggest thing on your mind, but it would certainly help to learn about this stuff. There are even services such as accounting (click here to learn more about firms that specialize) for those who do very well in this area. If you gain extra knowledge about this strand of finances, then it’ll help you in your overall understanding. There will be many people at this point who have no clue about what it is – if you know, then you’ll be ahead of the game.

Surround Yourself With Money-Related Content

By no means do you have to drive yourself loopy with this kind of thing, but it would certainly help you out a lot. If you listen to podcasts and watch video content surrounding money, then you’ll get it stuck in your head. The things we have around us influence us more than you might think. The person you are today is because of your environment, so if you want to become better with money, you’ll have to surround yourself with it. It’s not just about the content, though – you’ll want to ensure that you’re around the right people, too. If you hang out with people are throw money away and encourage you to do the same, then you’ll likely cave before long. 

Talk About It With Friends And Family

If you don’t really know what to do or you need advice, then you can always talk to people close to you. If you’re living with a partner, then talking to your partner about money would make a lot of sense. The chances are that you’ll do this kind of thing to a basic level most of the time, but it also helps if you want to take things to another level.

Go Back To School And Learn About A Few Things

There will always be classes you can take that will help you to learn more and more about money. Economics, business studies, and accounting & finance are just three examples in this respect. Who knows? You might end up forging an amazing career out of this kind of thing. If you really want to become more competent in this area, then heading back to school would be a tremendous idea. 

Stay Switched On In General Life Every Day 

If you want to become more switched on in terms of your finances and money overall, then you’re going to have to keep your mind active most days. Get into the habit of taking in information regarding your domestic life. Keep your brain and your body energized. When you lack energy, it’s very easy to simply ignore things that seem a little complicated and tedious. If you have lots of energy, then you’ll be more inclined to attack new information and learn more. 

Cut Out Impulses  

It’s easy to impulsively buy things that you are used to getting. If you can cut out this kind of behavior, then you’ll see just how important it can be to your life overall. When you see how much money you’re keeping in your account, you’ll realize just how good it feels and just how valuable money really is. 

Look To Save Whenever You Can  

Managing your money is an extremely important part of life – as we’ve reiterated many times. You might want to keep hold of as much money as you can because you never know what might happen going forward. Again, save a percentage each week/money and truly see how valuable your finances really are. If you do this, you get a real appreciation and it motivates you to know more.