| Eve & Elle Admin
5 ways of financially putting yourself first
"I am always astound by people who know exactly what ingredients they need in their facial cream for a great complexion, but have no clue how their salary is divided."
It's important to stay up to date on your finances, and it is vital to know your net worth. To help you even further here is a list of ways to put yourself first when it comes to finances. It will help you realize you can get more out of your paycheck by putting yourself first.
1# Understanding your paycheck
Make sure you understand every detail that is listed on your paycheck and where your money is going. You’ve worked hard and it is only logical that you would know which part of your salary is going where. I am always astound by people who know exactly what ingredients they need in their facial cream for a great complexion, but have no clue how their salary is divided. I mean facial cream is important too, but really?
2# Automatic transfers to your savings Account
The easiest way of saving, is not thinking about it. So each month automatically transfer some money from your paycheck to your savings account. And then don’t touch it. Try to find a savings account with great interest rates so your money will grow a little without you having to work for it.
3# Get out of debt
So you have money in the bank, you have a savings account with a great interest rate and you have debt? Are you financially stable? Not really! You are working against yourself. Always pay off your debt, because whether you realize or not you also pay interest on your debt, this means you are paying back more than what you ‘borrowed’. So get rid of debt as soon as possible. Sometimes it helps to call the company where you have the loan and see if you can change renegotiate the interest rates or if there are any incentives if you pay off your debt quicker.
4# Then Pay Those bills
After you’ve saved a little and paid off a little of debt, you will know exactly how much you have left to spend. Because you put your savings and debt first there is less to spend, so be mindful in what you spend your money on. It is always smart to invest in some statement pieces and workgear, but don’t overdo it. Can you really only find organic vegetables at that pricey supermarket or is there also a farmers market that you can visit. Do you really watch all those tv channels that you are paying for, or can you save a little by bundling internet, tv and phone.
5# Invest in investing
Let your money make money for you, invest some funds into your investments, this doesn't have to be a large amount but be sure to know where and how to invest. And only invest in something that feels right to you, go for the long run, to avoid extremely high risks and educate yourself on your investments. Our article Investing like a boss can be a good starting point.
And for the rest of the money? Spend spend spend, because you have already dedicated a large part to your (future) self, you are free to spend/save/invest the rest however you like.
How do you feel about your finances? Are they in order? Or do you need more tools to grasp how financially stable you are?