It’s important that you’re being smart with your money at all stages of your life. However, not everyone has the same attitude or upbringing when it comes to money, let alone education on the topic of money.
How we spend it and how we save it varies from one person to the next. What tends to be lacking is a knowledge of how to use money in order to benefit your life further. Regardless of how much you earn and make in your life, knowing how to make smart money decisions is only going to benefit you in the long run.
With that being said, if you’re looking to make smart money decisions in 2023, then here are some useful tips worth knowing.
Learn financial discipline
Firstly, in order to make smart money decisions, you want to learn financial discipline. That means being more in control of your money, rather than the money controlling you. If you’re a haphazard spender and find it difficult to hold back when the monthly paycheck comes in, then you might want to fix those habits.
It can be hard to hold back, especially if you’ve never given yourself that discipline before but it’s definitely something that can be achieved.
It’s worth being more aware of your spending habits and what triggers might influence you to spend the money. That way, you may then be able to find solutions to help you from overspending or using your money in a way that’s not financially productive for the benefit of your future.
Know your finances
It’s useful in getting to know your finances when you’re trying to make better money decisions. How much are you making each month? How much do you spend and what could be saved when it comes to those expenditures?
This means getting yourself a budget that you can visually see when it comes to laying out all of your income and expenditures as a household. Whether you're living alone, with a partner, or with a family, understanding your finances will make you a better decision-maker when it comes to spending or saving.
If you haven’t budgeted prior, then it’s worth getting a template online or making one on software like Excel for example.
Get professional advice
Professional advice is always a great way to make more from your money, especially if you don’t have much knowledge of it to begin with.
A good way to do so is by seeking services like Manulife Wealth Management. These types of services are great for those who are looking to make their money go further and if you have no experience of managing your money, then seeking financial advice is always productive to do.
Be attentive when seeking out these types of services as it can be a great way in which to learn more about money whether that’s making it, saving it or investing it.
Find additional ways to invest your money
Investing for a time was very much considered to be for the select few. Those who were considered elite due to the money they had available in the bank. However, there are a lot of investment opportunities nowadays that don’t particularly need a huge amount of money to start off said investment.
If you’ve never ventured beyond investing in your first property as a first-time homeowner, then there are plenty of other options out there worth exploring. From the stock market to cryptocurrency, it’s worth doing your research and finding new avenues to explore when it comes to investing.
Pay Off Debt
When you start accruing debt, that’s when you should be looking to pay it off as quickly as possible. Debt is a slippery slope to bad decision-making in the money department. It also means that you are naively thinking you have more money than in reality.
Paying off debt is part of the financial discipline you need to create for yourself. Once it starts to build, make a conscious effort to pay it off as soon as possible.
Have an Emergency Fund
Finally, make sure you have an emergency fund to hand when it comes to making smart money decisions. There’s nothing better than a rainy day fund to cover you for when something goes wrong and you’re left with a financial problem that can’t be covered by your paycheck.
It's one of the smartest decisions you can make when it comes to smart money decisions! Hopefully, with these tips, you can be more savvy with your finances in 2023.
Matt Hoffer is a crypto enthusiast and gamer. When he's not de-constructing the blockchain, you can find him chilling with some lemonade in the shade or playing a round of golf.