Navigating Your Finances

Many people are wondering how they are going to be able to keep up with inflation on the rise. It is important, even more so in the current economy, to be aware of your spending. Budgeting is a tried-and-true way to help ensure you have, and continue to have, enough money to make ends meet.

To start, it’s good to write down all of your expenses so that you have a visual of what you currently spend each month. Next, subtract that total from your take home pay. If that end number is positive, you should have some extra money each month that you might want to save, in case you ever have a need come up that isn’t part of your normal expenses. If that end number is a negative number, it means you do not have enough money to cover your monthly bills. Some ways to fix that would be to remove any expense that you can live without; for example, a streaming service or a different membership. If removing unnecessary expenses doesn’t create a surplus of money at the end of the month, you might want to look into ways to have extra money to make up that deficit; for example, shopping around for cheaper groceries or getting a part-time job.

Once you find a way to cover your monthly bills, it is important to stick to the budget that you created. Although there are options to borrow money if you need it, it is crucial that you understand the expense of any loan: interest. If you do need to get a loan, you should “shop” around to find the lowest interest rate, so that you will have less in interest to payback. Positive financial health can lead to less stress, so it is important to prioritizes your finances.