6 MONEY MOVE$ FOR A FI$CALLY RE$PON$IBLE LIFE$TYLE
Let’s chat about something that’s crucial for everyone, regardless of who you are and what you do. Whether you’re just starting out in your career or are already climbing the ladder, this is “it”: fiscal responsibility.
Managing your money wisely is not just about knowing how much you make or spend, but also about making smart decisions that set you up for success.
Let’s break it down with 6 money moves you can make to live out a more fiscally responsible lifestyle:
- Live Below Your Means
We’ve all heard it, but it’s worth repeating: spend less than you earn.
If you make $2,000/mo. (after taxes + benefits are pulled), you can’t spend $2,100/mo. or you’re already putting yourself in debt right away.
This very basic, yet often highly-ignored, principle will help you save and invest for the future, reduces financial stress, and gives you a cushion for unexpected expenses. Think of it as the foundation of a stable financial life.
Tools like Pocketguard or EveryDollar can help you keep track of your spending and savings.
- Regular Financial Reviews
Just like you check in with your career goals, you have to review your finances regularly. This helps you stay on track, adjust your spending habits, and spot opportunities for savings or investments.
Make it a habit (or even schedule it in your weekly or monthly calendar) to look over your budget and financial statements monthly.
Sites like NerdWallet offer great advice and tools for these reviews.
- Emergency Fund
Life is full of surprises, and not all of them are pleasant.
Having an emergency fund – typically 3-6 months’ worth of living expenses – can be a lifesaver. It provides a safety net, so you don’t have to rely on credit cards or loans in a crisis.
For more detailed steps on setting this up, check out Dave Ramsey’s “7 Baby Steps”, or better yet – check around your community for a Financial Peace University class, be that provided in person or via an online class with others.
- Diversified Income Streams
Relying on a single income source can be risky – even when you’re a single individual in your household.
Look for ways to diversify your income. Whether that’s through investments, a side hustle, or rental income, any of those (or others) are going to help you out big time in the short and the long run. If “side-hustle” is a trigger word for you, and not something you could manage, you’d actually be surprised when you look at either this list……or this one.
Diversification not only stabilizes your finances but also increases your financial resilience. Tools like You Need A Budget (YNAB), or Dave Ramsey’s EveryDollar system can help you manage different income streams effectively.
Otherwise, reach out and I’ll shoot you my personal, offline budgeting system.
- Avoiding Impulse Purchases
We’ve all been tempted by a spontaneous buy. I even was bombarded by a few from the time I woke up to the time I got to my website to post this.
Practicing mindfulness with your spending can make a big difference. Prioritize needs over wants and think carefully about each purchase. This discipline of mindfulness (or simply just patience) helps you cut down on unnecessary expenses and keeps your budget in check.
Give yourself 6 hours, and then 6 more days. If it’s still relevant, worth buying, and will truly benefit you in other areas of life, then budget it out and go for it.
Gotta treat yourself every once in a while!
- Continuous Financial Education
The world of finance is always evolving and staying on top of what’s going on in your neck of the woods, around the country, and internationally will be key.
Whether it’s understanding new tax laws, learning about investment strategies, stability in major export countries, or improving your financial planning skills – continuous education empowers you to make better decisions and adapt to changes.
Websites like Investopedia are great for ongoing financial education.
Incorporating these 6 money moves into your daily life can help you build a solid financial foundation and achieve long-term stability.
It doesn’t guarantee you that “if you follow these 6, you’ll do everything perfect!” But it is nice to have some reminders, or some pointers into what you may have not already been doing and can now work to incorporate into your lifestyle.
Remember this: it’s not just about making money – it’s about making smart choices that are wise for your financial health now and make it all worth it in the future.