Learning to master money

Yes, money comes and goes but learning to manage your money is very important and can feel like a daunting task. But it's a skill that anyone can learn. Whether you're just starting out or looking to refine your financial habits, mastering money management is key to achieving financial freedom. 

Here’s some basic things you can do to help get you on the right track with your money.

Understand Your Financial Situation, take a close look at your money. List all the sources of income (its your paycheck, side hustle earnings, investment earnings, etc.) and list all your expenses. I remember having to manually create a budget with pen and paper but now you can use apps or spreadsheets to categorize spending, so you can see where your money is going. This will help you identify areas where you can earn more, cut back and save.

Find ways to make more, technology is really a game changer for everyone, with a will to make more. Spending 4+ hours a week Ubering, Door Dashing or delivering Amazon packages can get you ahead with some extra funds.

Set Clear Financial Goals, setting specific goals is crucial. Whether it’s saving for a vacation, paying off debt, or building an emergency fund, having clear objectives will give you direction and motivation. 

Educate Yourself About Money and Investing, it's important to educate yourself on everything that affects you, money is no different. Read a book, article or watch a documentary on how money truly affects you, your self care, family and future. Once you have a handle on spending, budgeting and saving, start learning about investing. Investing helps grow your money over time. One book that has greatly helped me is Creating Money by Sanaya Roman

Create a Budget, it's your financial blueprint. Start with the 50/30/20 rule: allocate 50% of your income to needs (rent, groceries, utilities), 30% to wants (entertainment, dining out), and 20% to savings and debt repayment. Adjust these percentages as necessary to fit your unique situation. Stick to your budget and review it regularly.

Build an Emergency Fund, this is so important but often overlooked. Find simple things to cut back on, they don't have to be completely eliminated. Aim to save at least three to six months’ worth of living expenses, this fund will protect you from unexpected financial shocks, like medical emergencies or job loss.

Money management is a journey, not a destination. By understanding your finances, setting goals, creating a budget, building an emergency fund, and investing wisely, you can take control of your life! Join us at My So Sophisticated Circle