All of my Financial Assets

4 min readMar 11, 2021

Although money cannot buy you happiness, it can bring a sense of security. Without a handle on money management, you may always feel like your life is one step away from a financial cliff.

In fact, 25% of Americans say they worry about money all the time and studies show that two-thirds of Americans would struggle to find $1,000 to cover a financial crisis. You definitely want to avoid being in situations like this. This means knowing know to manage your money.

When you manage your finances well, life may not get easier but you have more time to focus on important things in your life.1. Set up the right bank accounts

The right bank accounts are critical to your financial success. Trying to manage your finances without the right bank accounts is similar to trying to take care of your car without the right parts.

You’ll need to set up checking, saving, and investment accounts. These are the building blocks of financial success.It is important to get both a checking and savings account so that you can easily separate your spending cash from long term savings. Simply leaving your savings in your checking account makes it all too easy to accidentally spend your hard-earned savings.

2. Take stock of your current financial situation

Although it might be scary, you can’t improve your financial situation unless you take stock of your current situation.

Be brutally honest with yourself about any outstanding debt or high expenses that are hurting your budget. Celebrate your good financial choices. Write everything down so that you can see the whole picture.

3. Make a plan for your money

Without a plan, it is extremely easy to find yourself short on money. After all, the treat yourself logic is easy to embrace. If you say yes to too many unnecessary expenses, then you might be disappointed with your savings.

In order to combat this, take the time to make a budget. Plan out where you want to use your money. In addition to your everyday expenses, think about your savings goals for the future. You also want to find a budgeting method that works for you.

4. Set money goals

If you are getting serious about your money, then setting goals is a good idea.

Think about where you want to be financially. There is no wrong answer but you’ll need to take a minute to think about your plans and how money would factor into them.

Once you have an idea of how money will play into your life, make clear and specific goals for your money.

5. Check-in with your finances every day

You can’t make progress without knowing where you stand. Take five minutes every day to check in with your budget.

Are you overspending? Are you right on track? It’s important to know.

It might sound tedious to check into your financial situation every day. However, it doesn’t need to take a long time. Use an app or spreadsheet to quickly determine how you are doing financial and get back to your life.

6. Manage your expenses

As you start to look more closely at your finances, take a look at your spending.

Look for expenses that you are able to cut out of your monthly budget. Even cutting an unnecessary expense of just $20 out of your budget can lead to a savings of $240 for the year.

Some simple ideas on things to cut out might include work lunches, a box subscription, or your cable package.

7. Take a look at your income

This might seem obvious, but it is important to understand exactly what you earn. Take a minute to determine your net income after taxes, not just your gross income. You’ll be more able to accurately budget with this number.

If you are disappointed in your total income, then consider picking up a side hustle. A lucrative work from home side hustle can fit into your schedule and help to dramatically improve your finances.

Another way to boost your income is to negotiate your salary. Don’t be afraid to approach your supervisor with data that supports your request for a raise. You never know what they may be able to offer.

8. Start paying down debt

Debt is a huge financial burden. Not only does it affect your current budget, but also your savings for the future.

Take your debt seriously and make it a priority to pay down your debt. Consider different debt repayment strategies and pick one that works best for you.

Don’t let debt stand between you and other financial goals. Create a plan to tackle it today.

9. Understand your credit score

Your credit score is a three-digit number that can have a big impact on your finances. Lenders are willing to offer borrowers with high credit scores better loan terms and lower interest rates.

As you apply for large loans such as a mortgage, a small interest rate reduction can save you thousands of dollars.

Take action to improve your credit score. Start by pulling your credit report to check for any errors and use a credit monitoring service to prevent any future mistakes. Other ways to improve your credit score including making on-time payments and keeping your credit utilization rate low.

A good credit-builder account can help you rebuild your credit and also help you avoid taking on new debt!