Author: goldewj

Four Tips to Help Manage your Money in 2023

Managing your money can be difficult, but it is essential to achieving your financial goals in 2023. The beginning of the year is a great time to prepare and plan to manage your money better in 2023. Often, we need better planning with personal finances. And then we get frustrated and quit, all the while thinking that this budget stuff does not work. Read further for four tips to help you manage your money in 2023.

Develop Goals for Your Finances to Manage Money in 2023

First things first, goals point the way to first. Everything starts somewhere, and like laying bricks, if the first course is straight, we know the wall will be straight. If we start the right way, we can finish the right way. It would be best if you had goals for your finances. Develop S.M.A.R.T. goals (Specific, Measurable, Attainable/Actionable, and Realistic, with some Time frame) for your finances. If you make your goals SMART, you will be more adept at achieving them. Goals are like a mission statement in business. They tell you what you are going to do and how consistently. When you doubt or need direction regarding what to do with your finances, your goals will point the way.

Sit down and think about how you want your finances to look in 2023 and what you want to do with your money. Then write down some SMART financial goals for 2023.

Track Your Spending

One of the most important things in managing your finances is tracking where your money is going. You must know where and how much money you are spending to manage it effectively. Managing money is about behavior and tracking your money allows you to see behavior(s) that need to adjust.

I dare you to track your spending for a month. Write down and track every penny you spend and where you spend it. By tracking your expenses, you will see where you can spend less and identify areas where you can cut back and redirect that money toward your goals. You will see places where you can change your spending behavior with money.

Pay Off High-Interest Debt

High-interest debt, such as credit card debt, can be a significant obstacle to achieving your financial goals. Consider consolidating your debt or working with a financial counselor to develop a plan to pay it off. By reducing or eliminating high-interest debt, you can free up money to go toward your financial goals.

Plan your Spending to Manage Money in 2023

Now comes the fun part — spending your money and a spending plan or a plan to spend your money. One of the three things money is good for is spending. So, it’s okay to spend it, it’s yours, and you worked hard for it. My goal is to get you to plan to spend it.

Next, take all the information from tracking your spending and create your spending plan for the next month based on what you spent that month. For example, if you spent $400 at the grocery store last month, you would spend around $400 next month. At least you will be closer to the actual number than just picking a number out of the air. Remember, a spending plan is an estimate of how you will spend your money. The better you can make the estimate, the better the spending plan. Sticking to your spending plan and adjusting as necessary to stay on track is important.

Review your progress regularly and adjust your plan as needed. It would help if you also considered setting up automatic savings. This would allow you to save money consistently and make progress toward your goals.

Managing your money is not easy, but with financial goals, tracking your spending, paying off high-interest debt, and creating and using a spending plan, you can make the most of your money in 2023 and reach your financial goals. Remember to stay disciplined and persistent, and don’t be afraid to seek help when needed.

I wish you all a happy and prosperous 2023.  By setting goals for your finances, tracking your spending, and planning to spend your money, you can manage your money better in 2023.

SUBSCRIBE! Treat your money, like no one else. Subscribe to GoldenRules today to get the latest money news, tips, and more.

Benefits of Working with a Financial Coach or Counselor

Working with a financial coach or counselor can be a valuable resource for individuals looking to improve their financial well-being. Below are several reasons someone may benefit from working with a financial professional. I am a financial coach and counselor and would love to work with you. Connect with me, and let’s get going to saving you some money.

Lack of Financial Literacy

Many individuals have yet to be taught the basics of personal finance and may need a clearer understanding of how to manage their money. Working with a financial coach or counselor can educate individuals on spending plans, saving, investing, and many other financial concepts.

Difficulty Sticking to a Spending Plan

Creating a spending plan is one thing and sticking to it can be quite another. A financial coach or counselor can help individuals identify and overcome any obstacles preventing them from sticking to a spending plan.

A financial coach or counselor can help individuals create a spending plan that works for their specific situation. They can also help individuals identify areas where they may be overspending and provide strategies for reducing expenses. Additionally, a coach or counselor can help individuals create a plan for saving money and reaching their financial goals.

Debt Management

High debt levels can be overwhelming and make it difficult to save or invest for the future. A financial coach or counselor can help individuals create a plan to pay off debt and become debt-free. A financial coach or counselor can help individuals negotiate with creditors and make a payment schedule. They can also provide strategies for avoiding future debt, such as developing a spending plan, living within one’s means, and avoiding impulse spending.

Difficulty Saving for Future Goals

Many people need help saving for long-term goals such as retirement or buying a home. A financial coach or counselor can work with individuals to create a savings plan and provide strategies for achieving their financial goals.

A financial coach or counselor can help individuals create a savings plan which may include setting up automatic savings plans, creating a spending plan that provides for savings, and identifying ways to increase income. They can also help individuals understand the importance of saving for different types of goals, such as retirement or education.

Managing Financial Stress

Money is often a source of stress for people, and a financial coach or counselor can help individuals develop strategies for managing financial stress. This can include learning stress-management techniques, creating a spending plan, and developing strategies for achieving financial goals. They can also help individuals understand the importance of self-care and its impact on their overall well-being.

Overall, working with a financial coach or counselor can provide a personalized approach to managing finances and help understanding your financial situation. Additionally, develop a plan that works for you. They can also provide a sense of accountability and motivation, which allows individuals to stay on track to achieving their financial goals. Connect with me, and let’s get going to saving you money.

SUBSCRIBE! Treat your money, like no one else. Subscribe to GoldenRules today to get the latest money news, tips, and more.

Breaking Financial Shame

Have you felt embarrassed or guilty about your financial situation? You could be experiencing financial shame. A 2021 article in the Journal of Organisational Behaviour and Human Decision Processes describes how financial shame can lead people to avoid financial information, creating a vicious cycle that increases financial hardship. Below are some tips for breaking financial shame. 

What Exactly Is Financial Shame

Financial shame is a feeling of embarrassment or guilt related to one’s financial situation or behavior. It can stem from various factors, such as debt, lack of savings, or financial mistakes. It can also be internalized or come from societal or cultural pressures. Unfortunately, It can be a barrier to seeking help or making positive changes in your financial life.

Evidence Of Financial Shame

Financial shame can manifest in a variety of ways. For example, it may prevent someone from discussing their financial situation with others, even if they could benefit from help or advice. It can also cause someone to hide their financial struggles by refusing to open bills or bank statements. This can lead to avoiding seeking help, such as from a financial coach or counselor, and can lead to a downward spiral of financial problems.

Additionally, financial shame can result from societal or cultural pressure to have a certain level of wealth or financial stability. This can lead to feelings of inadequacy or failure, even if someone’s financial situation is not significantly different from that of others around or close to them.

Recognize Financial Shame for What It Is

It’s important to acknowledge that financial shame is usual, especially in a society that values wealth and success. But it is also important to understand that it can be overcome. Below are several tips to help you break financial shame.

Seek Help and Support

Don’t be afraid to contact a financial coach, counselor, or financial professional. They can provide the tools and information you need to improve your financial situation and help you overcome financial shame.

Educate Yourself About Personal Finance

The more you know about personal finance, the more you will feel in control of your financial situation. Read books, take classes, or find online resources to help you understand the basics of personal finance.

Set Financial Goals

Setting financial goals, such as paying off a credit card balance or saving a certain amount of money, can help you feel a sense of accomplishment and boost your confidence. Remember to craft your goals using the SMART acronym (Specific, Measurable, Actionable, Realistic, and have a Time Constraint). If you make your goals SMART, you will better goals and be able to achieve them. 

Practice Self-Compassion

Be kind and understanding to yourself and practice self-compassion. Remember that mistakes in general, and financial mistakes specifically, are a part of life, and everyone makes them. Don’t beat yourself up; remember that you can always learn from your mistakes and improve. Use your past mistakes as a learning opportunity and commit to improving your financial habits. Try to focus on what you can do to improve your situation rather than dwelling on past mistakes.

Surround Yourself with Supportive People

Surround yourself with people who will support and encourage you rather than judge or shame you for your financial situation. If friends and the people you currently associate with are not supportive, you may need to find some new people to connect with.

Steps to Breaking Financial Shame

Breaking the cycle of financial shame can be difficult, but there are several steps you can take to help. First, acknowledge your feelings and recognize that feeling ashamed about your financial situation is regular and that you are not alone. Next, be honest with yourself and take an honest look at your financial situation and identify the areas where you may have made mistakes. Thirdly, create a plan to address your financial situation, including steps to reduce debt, increase income, and create a budget. Finally, act and follow through with your plan and take action to improve your financial situation.

Breaking financial shame is not easy, but it is possible. By doing the things above, you can take control of your financial situation and overcome financial shame. Remember that financial mistakes are a part of life, and you are not alone in this journey.

SUBSCRIBE! Treat your money, like no one else. Subscribe to GoldenRules today to get the latest money news, tips, and more.

Your Holiday Spending Plan

First, I wish everyone a wonderful, stress-free holiday season. I pray this holiday season is free from money worry and brings you all the joy and peace you can handle.  

The holidays are a time to get together with friends and family and to celebrate. It can also be a stressful period when it comes to personal finances and managing money. It’s the most beautiful time of the year and can be the not-so-most lovely time of the year for your bank account.

Holiday retail sales are expected to increase 4 – 6% this year, and 2 in 3 (68%) of shoppers will spend more or the same on holiday shopping this year compared to last, according to a report from Klarna.

Below are a few tips to keep your holiday spending plan wonderful and on track.

You Need a Spending Plan

First, decide on a spending plan for your holiday expenses, including gifts and gift-related items, and stick to it. Also, include non-gift things in your spending plan, like entertainment, food and travel. If possible, use last year’s spending as a guide to create your spending plan for this year.

Make a list and Keep It with You

Make a list and set spending limits for holiday gifts for each person. A list will keep you on task and help you not get caught up in the season’s pageantry. Make sure to keep your list with you as you are shopping during the holiday season. Keeping your list on your cell phone is a great way to take your list with you whenever you are holiday shopping. 

It’s very easy to get caught up in the season’s emotions and buy more than you planned. A list can help go a long way in keeping your spending in check and preventing a sizeable after-the-holiday bill.

Be Aware of Credit Card Spending

Credit cards can make it easy to overspend. A large portion of a credit card company’s profits is generated by holiday spending and overspending.

An excellent method for holiday spending is the envelope system. In the envelope system, you develop a spending plan and then distribute your cash into different envelopes with the names of your gift recipients or spending categories on the envelopes. When the envelope is empty, there’s no more spending for that person or category.

Shop Smart

Shop around, whether online or in-person, because prices can vary drastically, and allow yourself time to compare prices and offers before Christmas comes. Think of personalized or homemade gifts that people will use and cherish. Remember that it is the thought that counts and be creative with your gift-giving. Certain browser extensions like Honey, Rakuten and Capital One Shopping will do the work for you if you are shopping online.

The holidays should be a time of celebrating with family and friends, but too often, the season is overshadowed by financial stress. With advanced preparation and setting realistic spending plan goals, the holiday season can be a cheerful time.

Wishing everyone a happy, joyous, peaceful, stress-free holiday season and a prosperous New Year!

SUBSCRIBE! Treat your money, like no one else. Subscribe to GoldenRules today to get the latest money news, tips, and more.

5 Tips to Reduce Debt

One of the first steps to managing your finances well is to know where you stand with debt. People use and go into debt for many reasons depending on our financial situation, life needs, and personal preferences. Debt can be classified into four main categories: secured, unsecured, revolving, or mortgaged. Below are 5 tips for reducing debt and paying debt off faster.

Create a Spending Plan Now

If you are using a spending plan already, great! If you are not using a spending plan, start using one today. To manage your finances well, you must know where your money is going, and a spending plan helps you to do that. Recording your transactions is a great habit and understanding your cash inflows and outflows is a great way to uncover new ways to save.

With some planning and managing, you can reduce the stress of borrowing and improve your financial health while reducing debt. Creating and using a spending plan will also help you live within your means and not have to use credit on everyday items like gas and groceries.  

Pay More Than the Minimum

Paying as little as $10 more than the minimum on your debt payment will help pay your debt faster and save you money in interest. For example, if you have a credit card with a $1,000 balance and an 18% interest rate and pay only the minimum monthly payment, it will take almost three years to pay off the balance. The total price would be about $1,304, meaning you are paying out $304 in interest alone.

On the other hand, using the same balance, interest rate, and minimum amount due, let’s say you pay more than the minimum due each month. If you were to pay an additional $60 each month, or a total of $100, it would take just 1 year to pay off the balance, and the interest paid would be reduced to $103, a significant saving.

It makes a big difference to pay more than just the minimum due, in both the time it takes to pay off debt and how much you end up paying. Of course, the optimum plan would be to pay the balance in full each month and avoid paying interest altogether, but the most important thing is to make sure your payments fit your spending plan. 

Make Biweekly Payments

Instead of paying your mortgage once a month, slice your payment down the middle and send half every two weeks. Why? There are 52 weeks a year, so this works out to 26 biweekly payments, meaning you would pay 13 total payments.

Biweekly mortgage payments don’t save you money by lowering your interest rate; they save you on interest by paying your mortgage earlier. When you pay your principal balance down faster, there’s less interest and less debt.

Choose One Debt and Pay it Off

Two approaches to this strategy are snowball or avalanche methods of debt reduction. In the avalanche method, you pick the debt with the highest Annual Percentage Rate (APR), attack it until it’s paid off, then move to the next highest APR. This will reduce the largest chunk of money you’re spending on interest.

With the debt snowball method, you focus efforts on the smallest balance. When your first debt has a zero balance, you take the amount you were paying towards that debt and use it to pay down the next debt on your list, paying off that debt quicker, and so on. Once you move all your debts to a zero balance, you can begin applying all your debt repayment spending plan items toward your savings to help you reach your long-term goals.

Use Savings to Pay Debt

If you owe more in interest on your debt than what you are earning in interest on your savings, you may want to use some savings to reduce your debt.

Paying down high-interest debt with savings may be a better use of your money. While it’s essential to build up your savings for many reasons, such as having money to pay for emergency expenses, there are times when that money may be more helpful in paying off debt. Paying off high-interest debt is one.

Reducing debt is always a good idea, and the 5 tips for reducing debt above can help pay off debt. Using a spending plan, paying more than the minimum, and paying off debts early, will save you interest. And with your debt paid off, you can put more of your money into saving and financial goals. Comment below; I would love to hear from you.

https:goldenrules.biz