7 Money management tips | Financial IQ

On average, we make 6 to 10 financial decisions each day. With some-more than 70 percent of Americans vital paycheck-to-paycheck, those are some complicated stakes! At a new income government convention hosted by AVON cosmetics, LearnVest.com CEO Alexa von Tobel common with us a basis of personal finance. Here are her tip financial tips.

Get organized

Alexa recommends carrying as few accounts as possible. This means streamlining a series of bank accounts in your name and holding control of credit cards and 401(k) or other assets funds. Create a singular email residence that we use for all bills, e-statements and online banking. And, maybe many importantly, exercise a "money minute" each morning where we check in on bank comment and credit label balances. That way, you'll always have a transparent bargain of your financial situation.

Know your numbers

You should know accurately what your monthly income is, definition a volume of income we take home after taxes and advantages have been subtracted from your paycheck. Another critical "number to know" is only how most your life costs you. How most do we spend on rent, transportation, groceries and entertainment? Add adult all of your monthly expenses. Finally, know your credit score. According to Alexa, it should be during slightest 700 though a ideal is somewhere around 760 or more.

Have a budget

We all know we should have one. But here's a accessible relapse from Alexa: 50 percent of a income we take home should go toward essentials like rent/mortgage, groceries and transportation. Twenty percent should be put toward your future: profitable down debt, or saving for retirement, vacation or a automobile we wish to buy. The final 30 percent is for your lifestyle choices: shopping, dining and a like.

Start a leisure fund

When LearnVest.com perceived inhabitant courtesy for a mission, Alexa motionless to dump out of Harvard Business School to launch a association ? something she says she never could have finished but her "freedom fund." Your puncture assets comment should be indifferent for only that form of situation: Chasing down a good opportunity, walking out of a pursuit that we hatred or any variable health or life issues. The idea is to have 6 to 9 months of your life's losses saved in your leisure fund.

Save early for retirement

We know, "Boo... boring!" But instead of meditative of it as retirement savings, cruise of it as a "fun-after-I'm-done-working-my-life-away savings." That changes a opinion entirely, doesn't it? What kind of life do we wish to live in your golden years? Start saving now! Look into options for 401(k) or Individual Retirement Accounts (IRAs). The progressing we start, a some-more income you'll have in a future.

Purchase insurance

Hospital bills after a vital medical predicament are one of a tip ways people get into debt. Protect yourself by purchasing health insurance. It will save we income in a prolonged run, says Alexa. Besides health insurance, squeeze insurance skeleton for your home, automobile and even business apparatus if we are self-employed. Don't play with your well-being!

Seek advice

Working with a financial planner can assistance we compensate off debt faster, set picturesque financial goals and emanate an easy-to-follow highway map to strech those goals. Whether it's a personal banker, accountant or one of LearnVest's income government experts, it's an investment to consider.

More financial tips

Get out of credit label debtFrugal families: 15 ways to saveHow to ask your credit report

Source: http://financial.ahipcup.com/7-money-management-tips/

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