Financial Literacy Month – Tip #2

April is Financial Literacy Month! To celebrate, we are going to be sharing 30 tips to improve your overall financial wellness during the month.

Tip #2 – Review Your Expenses

The first tip was to review your finances. Now we’re asking you to do a deep dive at your expenses.

Sure, you took a look at some high level things yesterday and answered a crucial question: are you spending less than you’re making?

Now it’s time to do a dive into what you’re spending your money on. How much is housing (rent, mortgage, etc.)? What’s your car payment? Student loan payments? Let’s get a better understanding of what your big recurring expenses are and how all of your expenses are impacting your financial wellness.

Getting a deep understanding of where your money is going is crucial to improving your financial wellness. Afterall, how are you going to improve your situation if you don’t know where your money is being spent?

After reviewing some of your big ticket items, let’s get excited about the details. It may not be the most fun, but it should be the most useful (and will most likely cause the most surprises).

Let’s start by taking a deep dive into your credit card. When is the last time that you logged into your account and reviewed your spending? Well today is a great time to start!

Is there anything obvious that you can cut out? Are you seeing recurring small charges on pointless items? Remember, every little bit counts: $5 per day = $35 per week = $1,825 per year

Take that $5 per day that you find and put it in a savings account. Make it accessible but not right there in front of you. Let’s start to save a little bit more every day.

  • […] as often as you can. Set up a plan, follow it, and watch your rainy day fund grow from there. As we highlighted yesterday, take a look at your normal expenses. Cutting out something that seems small and reallocating that […]

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