Remember those finance classes you had to take in school? Or did you have to take any?
We may not want to hear it but it's the truth. Money is VERY important in this world. So where did you learn your money habits - was it in school? Probably not... most learn from how they were raised and what they learned from friends. But do they have the best habits?! Daily Worth posted an article by Natasha Burton on 8 Basic Money Lessons Everyone Should Know, here are some we feel everyone should learn:
- Live within your means. To really live at a level you can afford, you have to modify your lifestyle slightly and live below your means. “Look at your budget and spending habits as a project that requires ongoing monitoring and occasional adjustments,” says Chantel Bonneau, a financial advisor with Northwestern Mutual. “For example, if you keep tabs on where your discretionary spending is going, you can evaluate how to reallocate some of that impulse or unnecessary spend toward saving for a meaningful goal like a down payment on a home or a great trip. Hold yourself accountable with an app, a journal, an accountability partner — whatever works to keep you on track.”
- Budget Better. A strategy for staying on track — and not feeling deprived — is to budget month to month. In fact, money disorder expert Chellie Campbell, author of From Worry to Wealthy, suggests having three budgets — low, medium, and high — and deciding at the start of each month which one you're on. "Low budget is if you are making less money or saving for something special like a down payment on a house or a car,” she explains. “Medium budget is the money you’re making right now and how you’re spending it, and high budget is your dream budget [when more money is coming in]. Anyone can do low budget for a month — it’s when you think you have to do it for a lifetime that people give up."
- Save Smarter. Don't just save for the sake of saving as much money as you possibly can. "Put your financial goals in context first so you understand exactly how all of your savings today translate into funding those future goals," Crary says. Her advice: Get clear goals first, and then build a plan around them. “You don’t know whether you’re succeeding — or failing — at saving until you put all your financial goals in context,” she explains.
Want more? Finish the rest of the tips here. There are many aspects to becoming a Better Human, whether that's through gratitude, more sleep or even your pocket book. It takes time and practice but the outcome will be worth the work!