(Sponsored Post: Those of you who read my blog from time to time already know I don’t do sponsored posts, like ever. But this money management infographic came along recently from the folks at PSECU, a Pennsylvania credit union, and I thought it was really useful info for those trying to save money or get out of debt. I especially like the idea of Step 4, finding “money leaks” in your life.
I’d definitely add the tip of negotiating lower bills with companies like Verizon, AT&T, DirecTV, and Comcast. You’re probably overspending on these bills and “leaking” a bunch of money. Anyways, on to the post, hope you get something out of it like I did.)
Are you tired of living paycheck to paycheck? Managing your money effectively doesn’t have to be complicated. With a few easy steps, you can get your finances under control and begin intentionally using your money to build wealth instead of just hoping you have enough each month to balance out.
PSECU, a Pennsylvania credit union, created this six-step formula for successful money management infographic that breaks down how to get your finances in order.
Creating a Budget to Help Manage Your Money
A good budget breakdown consists of three categories: Savings or paying off debt (20%), needs (50%) and wants (30%). Yes, there is room for shopping in the budget.
First, get a good grasp on where your money is currently going. This is easy to do with apps like Mint or you can do it the old fashion way with pen and paper.
If you’re spending is over in one of the three main categories mentioned above, figure out which items might not be necessary for that area. Maybe you have a music subscription you never use or perhaps you’re overpaying for your insurance. Try to cut it down to fit within the percentages allotted.
If you have a lot of credit card or student debt, consider putting a little extra money towards that section of your budget so you can pay it off faster.
If you prefer a more detailed budget, breakdown your categories further as shown on the pie chart in the below infographic. You can even put the dollar amount next to it so you know exactly how much is going out each month.
Have extra money? Consider putting towards retirement or save up for a fun vacation or that dream car.
Here is the handy infographic that PSECU provided on money management:
Ask the Reader: What’s your best money management tip?
By Kyle James