Financial responsibility isn’t always easy to learn, but it’s an essential part of taking control of your finances and using your income to its fullest. This responsibility can lead to better spending tendencies that can, in turn, help you pay off your debts faster and build up savings to protect you in the future. So if you’ve struggled to stay on top of your spending, here are a few key ways you can adjust your habits and mindset to better meet your financial goals.

Create and stick to a realistic budget

Budgeting is a great first step toward managing your finances. In fact, according to a survey conducted by the Certified Financial Planner Board, people who budget feel more financially secure and confident than those who don’t. When you budget, you’re being strategic with your spending and controlling where your money goes each month. Budgeting strategies like the 50/30/20 method—where 50 percent of your income goes toward necessary living expenses, 30 percent is spent on your additional wants like eating out and entertainment, and 20 percent is put directly into savings—can help you create a realistic budget and become more financially responsible and secure.

Keep all your monthly expenses in one place

It’s essential to know what bills you must pay each month and when they’re due since missing one can hurt your credit score and end up costing you more money. It’s a good idea to have a spreadsheet that lists all your recurring expenses and their due dates. If spreadsheets aren’t your thing, you can instead use an app like Mint or even just make a note on your phone to better track your recurring expenses. It’s also important to automate your payments so you won’t have to actively think about them. Whatever method you opt for, tracking bills and expenses can help you keep up with your spending and give you an idea of how much will be coming out of your account and when.

Start giving yourself a weekly allowance

Many people receive an allowance growing up, but this tends to stop when you’re an adult and start earning a paycheck. However, setting up a weekly spending allowance for yourself can help you cut back on excess spending. You can set aside cash for each week or simply have a set number in mind to put on your debit or credit card. Either way, an allowance shows you how much money to dedicate to lunches, coffee, home goods, and anything else that you might want to buy in a given week. Having a specific number helps you to say no to that extra dinner out and instead save money by making something at home. 

Consider saving as a payment to yourself

Setting aside a specific portion of your income each month can help you save for an upcoming trip, additional spending during the holidays, or emergency expenses. Putting money directly into your savings can give you a sense of security, so look at it as a payment to your future self. You’re preventing potential headaches down the road when it comes time to spend extra money on something, and you’ll be grateful that you had the forethought to put money away when you did. 

Plan for larger purchases

Before making an expensive purchase, be it for a new piece of furniture or a nice outfit, it’s important to think it through. You don’t want to make a rash decision, especially if the item far exceeds what you’re used to spending. Give yourself some time to consider the purchase and plan out how you’re going to save for it. You can set aside money every paycheck for the item, allocate funds outside of your usual savings, or, if you’re dipping into your savings, check to make sure the purchase won’t bring the total amount too low for comfort. Taking control of your spending is about being strategic with your purchases and giving big expenses more consideration than you may have in the past.

Pay off your credit cards every month

Credit cards can be a great financial tool to have, but paying off the full balance every month is an important part of being more financially responsible. Just as important, they often have high interest rates that can significantly increase your debt if you don’t pay the entire balance—so it’s important to manage them the best you can. If you find that you can’t pay the full amount each month, consider adjusting your spending habits. Instead of picking up coffee every morning, eating all your lunches out, or adding a new item to your virtual cart every day, you can save money by making your own coffee and lunches and cutting back on your online shopping. These expenses may not seem like a lot in the moment, but they can quickly add up and create a high monthly balance that isn’t always easy to pay in full.

Regularly review your spending

To make sure that you’re continuing to stay on top of your finances, you want to regularly review your spending. Look at your credit card statements and your savings and checking accounts, and see what you are spending your income on each month. Carefully reviewing your accounts can help you better understand your financial habits and see where perhaps you’re spending too much and need to cut back. It’s simply a way to hold yourself accountable, allowing you to adjust your spending accordingly.

By taking a few easy steps to better control your spending, you can manage your finances and become more financially secure.

This article was prepared by ReminderMedia.

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The holiday season is a time of joy and headaches, celebration, fatigue, and togetherness mixed with a few knock-down drag-out fights. On top of the emotional rollercoaster ride can come a big wallop of financial stress. From buying gifts to hosting parties and traveling to see loved ones, plus filling up a cabinet with booze, expenses can quickly add up, leaving many overwhelmed.

However, with careful planning and a few practical strategies, you may manage your finances, keep all your hair, and enjoy the holidays without breaking the bank or accumulating excessive debt. Here are five strategic to-do’s that are worth considering.

To-do Number One — Create a Realistic Budget

The emphasis is on being realistic instead of maxing out your credit cards. Start by listing all the holiday-related expenses you anticipate, including gifts, decorations, travel, and hosting expenses if you’re entertaining guests. Be sure to account for any regular monthly bills and ongoing commitments.

Once you estimate your anticipated expenses, set a spending limit for each category. You might allocate more funds to the most important aspects of the holidays, such as gifts for loved ones. However, a thoughtful and meaningful gift doesn’t always have to come with a hefty price tag. Cut back on less essential items like an out-of-this-world outdoor holiday display that makes the energy bill sky-high.

To-do Number Two — Start Saving Yesterday

Procrastination may lead to last-minute financial stress. Start saving for the holidays well in advance. Open a separate holiday savings account. Even small, regular contributions add up, perhaps making a significant difference when the holiday season arrives.

Consider automating your savings by setting up direct deposits or automatic transfers to your holiday fund. This way, you won’t be tempted to spend the money on other foolish things, and you’ll have a financial cushion when the holidays arrive.

To-do Number Three — Creative Gift-Giving

Gift-giving is a cherished holiday tradition but may also be a significant source of financial stress. To alleviate this pressure, consider more creative and budget-friendly gift-giving options.

Create thoughtful and personalized gifts such as handmade crafts, baked goods, or photo albums. Suggest to friends and family that you draw names and only buy a gift for one person rather than purchasing something for everyone. Establish a cap on how much you and your loved ones spend on gifts to keep expenses in check. Instead of physical gifts, consider gifting experiences like concert tickets, a cooking class, or a spa day.

To-do Number Four — Sales and Discounts are Your Friend

The holiday season is known for its numerous sales and discounts. Keep an eye out for Black Friday and Cyber Monday deals and pre-holiday sales. Make a list of the items you need to purchase and research prices to help get better deals.

Additionally, consider using cashback and rewards programs credit cards offer to save money on purchases. Pay off your credit card balance in full before interest charges apply to avoid accumulating interest charges.

To-do Number Five — Manage Expectations

The pressure of high holiday expectations may drive you to financial stress. To alleviate this, open a line of communication with your loved ones about your budget constraints. It is OK to admit you’re broke. Explain how you’d like to enjoy the holidays without so much focus on material things.

Encourage friends and family to participate in budget-friendly activities or opt for more meaningful, non-material gifts. You may manage to foster a spirit of understanding and a true holiday spirit of being grateful for what you have.

This article was prepared by WriterAccess.

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Financial education is constantly evolving. As investments, financial priorities, and the economy change, so do financial strategies and plans. To stay on top of your retirement and ensure that you are on your way toward your financial goals, it’s vital to keep up with your financial education and awareness so that you will be able to make appropriate decisions regarding your financial future.

Whether you are preparing for your retirement, just starting your retirement journey, or are already a seasoned retiree, below are a few considerations to keep in mind as you continue on this path.

Be Mindful of Your Budget

Budgeting carefully and appropriately will help reduce your risk of a financial setback and better prepare for unexpected expenses. Your earning power is usually reduced when you retire, and your budget will be more limited to what you have been able to put away, along with a monthly Social Security payment. By limiting expenses and creating a budget that allows for savings and emergency expenses, you will hopefully be able to stretch your nest egg throughout your retirement.

Fraud Proof Your Retirement

Older adults are often the target of scammers and fraud. A trusting nature and the desire to help those in need that many in this age group have makes them especially vulnerable to those who want to prey on the kind-hearted. You should consider putting fraud safeguards in place to help reduce your risk of becoming a victim. These can include putting your phone numbers on “do not call” lists, using fraud protection features on debit and credit cards, having your credit monitored, and setting up alerts for family members to be notified of large or unusual withdrawals from your accounts.1

Research All Social Security Benefit Options

Many overlooked aspects of Social Security leave many seniors missing out on benefits they may be entitled to but don’t know to apply for. More commonly overlooked Social Security benefits include:

• Spousal benefits

• Survivor benefits

• Divorced spouse benefits

• Disability insurance 2

Plan for Medical Expenses and Insurance Costs

As you age, you are more likely to require costly medical testing and treatment to maintain your health. Unfortunately, medical costs continue to rise each year. One of the first steps to take to manage medical costs is to find appropriate Medicare coverage to ensure that you can minimize monthly costs and the cost of your medical needs. You will also want to plan for future high medical costs and expenses, including long-term care, even if you have a good healthcare policy in place. Including medical expenses in your monthly budget will help with this as well as purchasing insurance policies, such as long-term care, to provide additional cost coverage. 2

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Please keep in mind that insurance companies alone determine insurability, and some people may be deemed uninsurable because of health reasons, occupation, and lifestyle choices. Guarantees are based on the claims paying ability of the issuing company.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

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Footnotes:

111 Money Tips for Older Adults, US News and World Report, https://money.usnews.com/money/personal-finance/slideshows/11-money-tips-for-older-adults

2 A Guide to Finance for Seniors, Senior Living, https://www.seniorliving.org/finance/