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In this video, finance coach and founder of The Frugal Feminista Kara Stevens shares tips on how to stay on top of monthly finances.
Kara Steven’s five tips for anticipating costs:
- Get organized. Take time to determine what all of your bills are, where they are coming from and when they’ll be arriving. Make time every month to review your bills.
- Create a budget that works. You’ll start by calculating how much you have coming in and how much you have going out each month.
- Get an accountability partner. This is someone with whom you can share your financial wins, help in problem solving and keep each other on track with goals.
- Find a way to earn extra money. This might be as simple as selling unused items at home or it might involve starting a side hustle that’s based on a passion.
- Pay for entertainment in cash. It helps you track your spending and enjoy some fun, guilt-free.
Common financial mistake:
Having an overcomplicated system, says Stevens, is a common mistake. Stevens recommends keeping systems simple. Putting all bills on auto-pay is a good start.
Preparing for the unexpected:
When it comes to being prepared for expenses that are out of the ordinary, Stevens recommends starting a “sinking fund.” This is a fund that you’ll contribute a little bit of money to each month, no matter what. That way, when the unexpected occurs, you don’t need to be stuck figuring out where the money will come from.
Staying organized when you’re busy:
If you lead a hectic lifestyle, Stevens says it’s important to stay organized with short-term and long-term goals. Short-term goals might be just one or two-year goals and could include things like creating an emergency fund or saving for a wedding. Consider how much you can realistically contribute to this fund monthly. A long-term coal might be a five- to 10-year goal and could be something like buying a home. Again, calculate what you can afford to contribute to that goal monthly.
How to be proactive instead of reactive:
If you don’t want expenses to catch you off guard, Stevens recommends setting aside time to get to know your finances better. Sit down and review budgets regularly. And know that finances don’t have to feel scary, so long as you have a plan.
Remove pressure:
One way to have more fun and relieve yourself of financial pressure is to get rid of some of the countless monthly subscriptions you might have. Stevens reminds consumers that Amazon Prime might offer what many other subscriptions offer all in one place, like movies, music, TV and more.
If you have an EBT card or other government assistance, you might qualify for 50 percent off your Amazon Prime subscription. See if you qualify here.
