My favourite subject “money”…well maybe not, but it should be a primary concern for anybody or business. Having to manage finances it not always easy or straight forward. Having worked in the financial service industry for many years, I have seen many families with credit card debts well over what they could afford, many not knowing how they got to that point.
Being self-employed or running a small business may add extra risks to your finances and brings an added dimension to your situation. Chasing after your customers to get paid, slow markets, lack of customers and having to buy everything from computer equipment to paperclips means that you have to make sure to stay on top of every aspect of your finances.
Budgeting makes it easier for people to make conscious decisions about how they should allocate their money. A budget is simply a breakdown and plan of how much money is coming in and out. It makes it easier to stay on track and helps you avoid financial stress!
Also, everyone should build up a cash reserve. A minimum of three to six months’ worth of expenses is a good cushion (probably even more with today’s crazy economy). This will help protect you from a sudden loss of income or an unexpected expense.
Like anything important in life, it takes careful planning and discipline to manage your finances. Every person and situation is different and if you have any financial concerns or questions, you should consult an expert for advice.
Here’s Carley from Digitwirl with a great tool from Mint.com that might make managing your finances a little easier.
Keeping track your life is challenging enough, so who can remember when your next credit card payment is due or that your checking account is on life support? But there is a simple way of keeping track of all your finances, by storing them in one secure place–Mint.com.
With a few simple clicks you can upload your bank account balances, bills, mortgage statements and student loans and Mint will organize them in one place so that you always know exactly what’s going on with your finances. No more searching piles. No more late fees. And, Mint gives you an up-to-the-minute view of all your transactions, analyzes your spending habits and lets you set up a budget. It might just surprise you to see where your cash is going and how you can save money. With the Mint app (available for both iPhones and Androids) a quick peek at your bottom line will help you decide whether to purchase, or pass on, that little “Me gift” you’ve been eying.
Watch this week’s Twirl to learn all about how you can gather up all your finances into one safe financial manager. Oh, and let us know what you think about Carley’s hat. Yay? Or Nay?
Digitwirl is the weekly web show that offers simple solutions to modern day problems. In 3-minutes, Digitwirl brings busy women the very best time, money, and sanity-saving technology, and then teaches them how to use it, step-by-step. Digitwirl was created by technology lifestyle expert Carley Knobloch, who uses lots of technology to manage her busy life as mom of two and entrepreneur. Become a subscriber to get weekly show alerts and exclusive deals at Digitwirl.com, or follow Digitwirl on Twitter at @digitwirl.