Examples Of Developing Financial Maturity

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Developing Financial Maturity: How a Few Changes Can Make You Money Savvy

Your financial situation now can greatly affect your future. If you are not saving money for retirement or lack an emergency fund, you can end up running into problems later on. By focusing on the long term, you can develop a financial stability that keeps your family secure for the coming years.

1. Track Your Spending

Before you can even create a budget, you have to know where your money is going. Start by tracking your spending for a month. In most cases, you will be able to find some categories that you can cut. Entertainment costs, eating out and other lifestyle habits can quickly add up to hundreds of dollars a month. Keep your receipts and write all of …show more content…

5. Put Saving First

You deserve a healthy financial future. One of the best things that you can do today is start saving money. Initially, you should focus on an emergency fund. Once you have an emergency fund in place, you should start saving for retirement. Because the interest compounds over time, you will have more money for retirement if you save $500 today than if you saved the same amount in 20 years. Plus, some retirement accounts like a 401(k) plan allow you to deduct your savings from your taxes. If you have financial goals like buying a house, you can also focus on saving for a down payment.

To make saving easier, set up an automatic withdrawal from your bank account or paycheck. Many people initially start with saving 10 percent of their paycheck in a 401(k) plan. Once you are used to this amount, try to work toward 20 percent of your paycheck or more.

6. Put Your Windfalls to Work

You are already used to living on your current budget. Cutting your budget to save more money might not be easy right now, but there are ways that you can still save painlessly. When you get a sudden windfall like a bonus or tax refund, immediately put that money toward your debts or savings account. If you get a raise at work, you can painlessly apply that extra money toward your monthly savings goals. Instead of using a raise or sudden windfall to buy a new car, use it to improve your financial situation.

7. Be Wary of Credit

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