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I have a great contributed post for you today on how to better understand your money. It’s for informational purposes only, so please consult a financial professional before making any money decisions. Got it?
You have enough money to pay the bills and put food on the table, and maybe, you can even afford a holiday – but after that, there isn’t much money left over.
If you can relate to this, don’t worry. More than half of Americans have less than a thousand dollars in their saving accounts, indicating that millions of people in the U.S. struggle with money. This makes finance seem like a difficult subject that is hard to understand, but in reality it isn’t too difficult to achieve financial success.
From learning how to budget to figuring out investing, here’s exactly what you need to do right now to improve your financial success.
In the past investing was one of the most popular ways to gain financial success, but millennials are more cautious about investing than their parents were. This could be because they worry that investing is complicated and risky, but these fears may be unfounded.
Some investments can definitely be risky, but other areas are far more reliable. For instance many financiers and investors, such as Jason A Sugarman, have praised charity as a fairly reliable form of investment – and it gives you the chance to give back to the community. This means that you can improve your financial success while also helping the needy – just make sure to do some research so that you invest in a charity that will provide you with returns.
It’s likely that you already have some form of budget in place to help you save, but if you are reading this article your budget clearly isn’t effective enough! One great budgeting method is the 50-30-20 split; put aside 50% of your income for the basic essentials (such as rent, bills and food), 30 for your personal lifestyle (such as snacks, Netflix, clothes and nights out) and then leave 20% for other financial goals (such as savings accounts, retirement funds or debt payments).
This will help you to keep a clear track of your spending, and it also means that you are less likely to splurge and waste money on something unnecessary. Just make sure to prioritize the final 20% as much as you prioritize the other 80%.
While finances may seem like a difficult, complicated subject sometimes, in reality it is fairly easy to improve your financial success. All you need is a little discipline – and some investing knowledge.