Nobody teaches you how to manage your finances. But that’s an integral part of everyday life, especially when adulting becomes a reality. Unfortunately, having a piggy bank isn’t enough. You have to learn how to plan a budget, how to use different savings (and emergency) accounts, and how to invest. Nowadays, the experts suggest investing in cryptocurrency, to later turn Bitcoin to USD, or BTC to USD. Planning a retirement plan isn’t enough, not in the era of low-paying jobs and digital nomads.
But, with these four tips, you will be on the right path to financial freedom and to a correct management of money in uncertain times.
Why and how to plan a budget
It might seem tiresome and pointless, but having a budget is ideal for planning for emergencies, fixed expenses, and even the fun times. Generally, the golden rule is the 50/30/20, meaning:
- 50% of your income for living expenses and necessities like grocery shopping or rent
- 30% of the income towards your wants like a night out bar hopping or the movies
- 20% of your income towards any debts and savings like an emergency
However, keeping in mind this rule isn’t the only way to plan a budget. In fact, you need a panoramic view of your finances to then be able to zoom in into the details.
You don’t need a complicated Excel sheet because the best budgeting apps, like:
- Mint, which is a free app ideal for beginners. It allows you to add information about your credit cards, any investments, and your monthly bills. You can personalize the budgeting categories to reflect your needs and preferences and track your financial goals.
- MoneyPatrol is the best free money management app you can download today. This app easily tracks transactions from linked financial accounts, will automatically categorize these transactions, and will also send you email alerts when you go over budget.
- Personal Capital, is another free app. This app is ideal for investors, even users investing in cryptocurrency. It’s also useful to track loans and mortgages. Available also for desktop, Personal Capital is any investor’s dream.
- PocketGuard, this time a subscription app. This is one of the simplest among the best budgeting apps. You can connect your bank accounts, track your bills, and create a debt payoff plan.
Thanks to these apps, it’s easy to plan a budget and to make sure you will always have the money you need to survive and thrive.
Money saving tips: what to cut off from your budget
The good news is: you don’t need to give up on your morning coffee run or your weekend getaway. But, instead of getting an expensive cappuccino every morning, try to get it twice a week.
Here’s what you can cut off your budget: those subscriptions you don’t use. For example, the gym you never go to, the streaming service you don’t use anymore, or the subscription to online consultations. These recurring charges can weigh on your budget, rendering the best money-saving tips useless. A recent survey showed that consumers spend $133 more a month on subscriptions they don’t use. Plus, 42% of them don’t even remember subscribing in the first place. So, these are definitely an expense to cut from your budget.
It’s time to start investing
Forget anything you might have seen on “The Wolf of Wall Street.” There are different assets you can bet on, relying on an expert like a broker or going at it solo through one of the many apps available. Nowadays, you can also start investing in cryptocurrency, one of the best and most promising assets in 2022. Bitcoin isn’t your only option. If you have a tighter budget, you can invest in Ethereum (ETH) or other altcoins (alternative cryptocurrencies) such as Dogecoin or Solana.
If you are new to the world of investing in cryptocurrency, you can begin with one of the many exchange platforms online, which act as useful intermediaries. Some of the most popular ones are:
- Binance
- com
- Coinbase
All of them offer news, statistics, and historical data to ensure you make the right choice for your financial future.
Consider an extra income, no matter how small
Unfortunately, in 2022, your monthly fixed income might not be enough. So, you might consider taking on a new gig, something small like freelancing or opening an Etsy store. This will allow you to grow your monthly income and, hopefully, turn a hobby into a profit. According to the payment and online shopping platform Shopify, some of the most lucrative hobbies are: drawing, cooking, and photography. Furthermore, opportunities like the AirBnb Experiences can be a good way to make extra income and meet new people. A real win-win.
With these four tips, your financial strategy will become a winner.
Fraquoh and Franchomme
P.S. We want to hear from you! How do you manage your money in difficult times? Do you invest in crypto? What digital money do you have? Share your feedback, questions or thoughts in the comments below! For more articles on style, fashion tips and cultural insights, you can subscribe to Attire Club via email or follow us on Facebook, Twitter or Instagram!