Prioritizing money can be hard; especially when payday comes around and you remember those shoes you saw sitting in the store window last week. You didn’t have the money then, but you do now. Most Americans prioritize their wants, and cater their needs to the background. According to CBSNews, the average American family has a credit card debt of $7,200.00. It’s time we grabbed our finances by the horns and increased our net-worth. So listen close, and allow me to share with you some secrets. Here are the three crucial things you should do with every paycheck.
My grandpa once told me, “You’re only worth as much as you put in your savings.” Basically, if you’re not saving, you’re losing. Pay yourself first. Put money in the SAVINGS, no matter what. When you save, you’re able to make investments, obtain a safety-net, and give yourself a peace of mind for the future. Don’t wait till the end of the pay-cycle to put this money back. Have you ever heard of the saying, “out of sight, out of mind?” The same concept applies. If you don’t see it, you can’t spend it. I can’t say this enough. PUT IT BACK.
Second, pay your bills, and pay them on time! I know this seems like the obvious, but some people put off their house payments and other bills, believing that by not looking at the invoices, the bills aren’t there. WRONG! Creditors won’t go away just because you ignore them. Another piece of advice, pay them on time. Avoid the unnecessary late fees and save yourself the headache.
Once you’ve delegated money for your saving and paid the bills, don’t be afraid to have some fun! If you want those shoes, and have budgeted appropriately by following the two previous steps, then splurge! There’s nothing wrong with rewarding good behavior! I know several people who focus on their savings and bills. They may have a large bank account, but they are also unhappy and bitter. Give yourself some psychological stability, and don’t forget your own needs.
Life is a balancing act, and so is managing your finances, but you can do it! Make every paycheck count. Budgeting for your savings, bills, and fun doesn’t have to be hard. When you budget, you become the master of your finances, because you know where your money is going! When your boss hands you your check, or you receive that direct-deposit, forget the shoes and remember the crucial three- SAVINGS, BILLS, and FUN!