7 LIFE CHANGING STRATEGIES FOR FINANCIAL MANAGEMENT

7 LIFE CHANGING STRATEGIES FOR FINANCIAL MANAGEMENT

With each new day, many of us continue to embark on a journey of self-improvement and goal setting. For some, this includes taking a closer look at how to become better stewards of our finances, assets and debts, and ways to manage them more efficiently for financial success and stability. I recently reviewed the past year and had an in-depth discussion with my spouse about what worked, what didn't work, and how we can improve in several areas of our life together, especially our financial goals. Together, we outlined a comprehensive plan to streamline our financial management this year and beyond. Here's a breakdown of a few 5 key strategies that may also help you achieve financial success and build better communication within your household.

Daily Financial Check-ins:

To stay on top of your finances, commit to reviewing your finances daily. Daily management should be as regular as brushing your teeth. Make it a practice to review the finances every morning and evening to stay abreast of what's urgent, what's being debited, what needs to be paid and more importantly, what unnecessary subscriptions, erroneous or unauthorized charges appear that can be removed This proactive approach allows us to manage our businesses and lives strategically and identify any issues promptly. As many people, especially entrepreneurs already know, sometimes funds run low and cash flow is flowing ...in and out. By managing finances on a daily basis, it helps us stay proactive, avoid surprises, operate as if finances matter daily (as they do), and maintain a clear understanding of our financial health.

Pay in Advance for Stability:

Early is the real on time! Get into the mindset and make it a goal to pay bills three to six months in advance. To truly feel financially stable, reduce financial stress, and mitigate the risk of missed payments and late fees...adopt a strategy of paying bills ahead of schedule. Consider not buying or spending any excess money until all your bills are paid in advance. It may be a little challenging in the beginning, but trust me, it is worth the extra effort and short-term sacrifice.

Embrace the Power of Autopay:

There are two ways to do auto-pay and can be risky if you don't have cash in the bank at all times; the other allows you to control your payments without risking getting hit with bank fees. You can set up auto-pay with the creditors or set up and control the autopay online through your bank. Auto-pay set up with the creditor only works when there is money in the account, which is why I recommend setting up auto-pay with your bank so that you control when payments are made, and you never have to worry about being caught off guard or incurring NSFs fees. When you use autopay through your bank, you are ensuring that your money goes to priority bills and isn't spent on frivolous stuff before an important bill gets paid. For example, if you have an auto loan payment of $400 per month, set up a weekly auto payment with your bank to pay the creditor $100 per week or more. Setting up payments to go out weekly on interest-bearing accounts such as mortgage payments, auto loans, and credit cards can reduce the interest you pay, help you pay off the accounts in advance and keep money in your pocket.

Save a Dime Even When $1 short:

Set up auto payments to automatically pay or transfer into your savings accounts. PERIOD. NO EXCUSES! You will need the money in the future, and it's important to put money away for a rainy day. If you cannot afford to save, then you cannot afford not to save. Saving money isn't spending money; it's putting it in a safe place so that you won't drown when the rain comes. And it WILL rain. So, get prepared. 

Organize Mail and Manage Bills: Despite receiving reminders about bills, we recognized the need for better organization. I recall a time when I would open bills on the 1st and the 15th only. And yes, I would sometimes miss those important, friendly reminders. Regardless of when we plan to pay the bills, all mail and bills must be promptly opened and organized by priority, and any bills that are not on auto-pay need to be scheduled for payment using a debit or a reward-earning credit card. Do not wait, avoid nor stack the bills in a pile for "later". Schedule it now. Proactive and organized bill management is essential to avoid overlooking payments and to prevent bills from accumulating to the point of being overdue and overwhelming. Sort bills by due dates, promptly open and address them.  Even if you are not the primary bill-payer in the household, it is important to know what's going on, offer support by managing the load a bit and take collective responsibility for ensuring that the household stays on top of finances, accounts payables, receivables and future goals. 

Information Hub for Family Details: Creating a centralized hub of family information that loved ones may need one day is crucial. The last thing anyone wants is for our children, parents, siblings, or other loved ones - to have to struggle while grieving too... A central hub will serve as a comprehensive resource for all family members, promoting transparency and accessibility to essential information such as estate plans, wills, deeds, life insurance policies and important contacts. Make sure your family has access to important information. 

Communication and Business Credit Cards: For couples, communicating about finances can be difficult for many people. Yet, it's imperative that it be done. If you find it challenging to talk openly about finances to your spouse of significant other; try writing your thoughts, ideas, plans and strategies down. Don't avoid it, lean in. Enhanced communication within the household is essential to successful financial management and achieving long term goals. If you and your spouse are able to have healthy conversations about finances, consider including any children in the conversation so that they gain life skills and become familiar with financial management and literacy. If they aren't learning it now, when will they and where from?

Conclusion: Navigating the financial landscape can be a complex task, but with a well-thought-out plan and effective communication, financial success will be achieved and enhanced. As the world implements strategies to achieve financial stability and wealth, I believe there will be a reduction in stress, crime, mental health issues and an increase in education, better health and a happier society.  Please subscribe to my page and share your thoughts in the comments.