I am not financially perfect, far from it in fact. If you have ever been here before chances are you know that I have a ton of student loan debt. But there comes a point that once you get a handle on your finances all you can do about your debt is to just keep doing what you are doing and give it time.
Being financially literate and having a handle on your finances doesn’t happen overnight. It requires a constant state of learning and evaluating what works for you. While I may be a long way from debt freedom, I’ve got a pretty solid handle on my finances and that has its benefits. Here are the best parts of having a handle on your finances.
1. When the Credit Card Statement Comes in and You Know Exactly What’s On It and That You’ll Be Paying it Off in Full
I became credit card debt free earlier this year and have since learned a lot about using credit cards to my advantage.
Now when I use my credit cards, I make sure it is only for things that I will be able to pay off in full. If I don’t have the money in my account to pay it off, it doesn’t go on my credit card.
2. Never Sweating the Small Stuff
That Starbucks latte that you hadn’t explicitly planned for? No problem. You’ve budgeted some slush/fun money for instances like this, caffeinate on my friend. Same goes for the last minute drink out with friends.
Looking to save for the fun stuff? I use Chime to help save some fun money. Chime rounds up my transactions to the nearest dollar and sets it aside in a separate savings account. Making sure I don’t end up spending it.
Chime works by starting a spending account (takes 5 minutes) and opting into the automatic savings plan. Every time you use the Chime Debit Card it rounds up your purchase to the nearest dollar and puts in in savings. Right now they also offer a 10% bonus on those savings. All those withdrawals add up over time. With Chime you end up saving money without having to think about it.
3. Not Sweating (much) the Big Stuff Either
That is what my emergency fund is for, I got this. Though you better believe I’ll be working my butt off after to refund that emergency fund.
If you don’t have an emergency fund saved, then I highly recommend you use Chime to save for an emergency fund rather than fun money. Chime is great to jumpstart and build up your savings. The best part is that you’ll be saving without even thinking about it.
4. When the Six Month Car Insurance Bill Comes in and You Look at Your Targeted Savings Account and See you Saved More Than You Needed
You just gave yourself a little bonus. Do I throw it at my debt or give myself a head start on the next insurance bill? Decisions decisions.
5. When You Come in Under Budget and Feel Like You Won the Lottery
Party! This girl earned herself an extra bottle of wine this week. Or an extra bottle of wine on my next trip, I like to put this kind of extra money towards a travel fund.
Wrapping it Up with a Bow on Top
No matter where you are in your finances and debt, getting a handle on what is happening with your money is going to help with your money mindset. The better your mindset the better you become at managing your money. In the end, getting a handle on your finances comes with lots of benefits.
What has been some of the best parts of having your finances in order? Share in the comments!