What Does it Mean to Handle Your Money Completely?
Money, or the lack thereof, is one of the most significant tangible stressors people face.
Handling your money altogether means taking whatever steps are necessary to set yourself up for financial independence. That might mean saving more, investing more appropriately, earning more, spending less, using appropriate financial professionals, or just simplifying your life. How you handle your money will depend on where you are starting today, what financial independence means, and designing your life to best support you in achieving that.
Tools You Need to Handle Your Money
Budget Tools
You can create a budget document in Excel and track all your expenses, or use the old-fashioned way—pen and paper.
I use Quicken – www.quicken.com. However, Intuit has a more straightforward version called Quicken Simplifi – www.quicken.com/products/simplifi.
YNAB (You Need a Budget) software: www.ynab.com
Pocket Guard – www.pocketguard.com
Whatever tool you use to create and manage your budget, CREATE one, as it will help you handle your money.
Savings Tools
Savings Accounts—Look for accounts that offer higher interest rates, such as online banks. I have used Ally Bank. Ally Bank is a highly-rated online bank that offers much higher interest rates than standard banks. They don’t have branches and use savings to offer higher interest percentages.
Employee – Automatic savings – Have your employer take a specific amount from your net check for each paycheck and store it in your savings account.
Emergency fund: A separate savings account designated for emergencies ensures you don’t dip into it for everyday expenses.
Investment Tools
Brokerage accounts—You can create an account with a strong brokerage company or develop a relationship with a financial investor who handles your finances with stocks, funds, and cash accounts.
Retirement Accounts—IRAs and 401(k) are popular tax-advantaged retirement accounts for future savings. Many employers offer 401(k) plans, though if not, you can open an IRA (Roth or Traditional) independently.
Spending Less
- Track your budget
- Set spending limits—Once you see your patterns, set specific limits for non-essential categories like entertainment, dining out, or shopping.
- Use the 50/30/20 rule – Allocate 50% of your income to needs (housing, utilities, groceries), 30% to wants (entertainment, dining), and 20% to savings and debt repayment.
- Reduce housing costs
- Downsize your living space
- Get a roommate
- Cut Utility Bills
- Switch to energy-efficient appliances
- Unplug electrons when not in use, like TVs, computers, and charges consume electricity even when not in use.
- Adjust your thermostat
- Reduce Grocery Spending
- Meal planning – plan your weekly meals and create a shopping list based on your needs, avoiding impulse purchases.
- Buy in bulk – purchase non-perishable items, like rice, pasta, and canned goods, to save money in the long run.
- Use store brands – often, store brands are created by brand names. Check out your favorite food store brands to see who creates the product.
- Shop sales and use coupons—take advantage of sales, discounts, and coupons to save on your grocery bill. Find apps that provide coupons for the products you usually get.
- Transportation Costs
- Carpool or public transportation can save on fuel, maintenance, and parking fees.
- Walk or bike for short trips.
- Maintain your car
- Shop around for auto insurance.
- Subscriptions and Memberships
- Review your subscriptions (streaming services, gym membership, magazines, etc.) and cancel those you no longer use.
- Find free alternatives – library or YouTube for workout videos instead of a gym membership.
- Negotiate or bundle services – see if your internet, phone, and cable provider will negotiate lower rates.
- Control Dining and entertainment Costs.
- Cook at home – eating out can be one of the most significant non-essential expenses. Cooking meals at home is cheaper and often healthier.
- Limit takeout and delivery – limit how often you order food for delivery.
- Avoid Impulse Purchases
- Wait 24 hours before making a purchase. This delay can help you decide if the item is something you need or want.
- Set a monthly “fun money” budget – allow yourself a set amount of discretionary spending each month to avoid overspending on unnecessary items. Even if you have a limited amount for a “fun money” budget, set aside a small amount you can indulge in.
- Optimize Insurance and Healthcare Costs
- Review your insurance policies, shop for better auto, home, and health insurance deals, and compare policies annually.
- Raise deductibles – increasing auto and home insurance deductibles can reduce monthly premiums.
- Use preventative healthcare – schedule routine checkups and stay on top of preventative healthcare.
- Ask for generic prescriptions – They are usually cheaper than name-brand options and work.
- Reduce Debt Payments
- Pay off high-interest debt first – because you will save money in the long run.
- Negotiate with creditors to negotiate lower interest rates or set up a more manageable payment plan.
- Shop Secondhand
- Buy used when possible – Purchase used items like furniture, clothing, or electronics from thrift stores and garage sales on online marketplaces like Facebook Marketplace or eBay.
- Use Cashback and Rewards Programs
- Sign up for rewards programs – loyalty programs at stores you frequently visit that provide discounts on purchases.
- Use rewards credit cards—Use a cashback or points-based credit card for everyday purchases, but only if you pay off the balance in full each month to avoid interest charges.
Final Thoughts
By implementing some or all of these strategies, you can reduce your expenses and create more room in your budget for savings, investing, or paying down debt.
Your Thoughts
Do you feel comfortable managing your finances, or is it a daily struggle to stay within a budget? Every time you decide to take control over your financial health, even in small ways, it will make a difference in your stress levels.
Women’s Group Topics
Many people aren’t comfortable discussing money issues or how to manage their money. Open the discussion to see what areas the members want to discuss during the meeting.
Be well,
Pat|
“To fully enjoy the ‘richness’ of our lives, we need to stop long enough to visit with ourselves.”
(Pat Brill)
Other Topics You May Be Interested In
How to Make the Tough Decisions in Your Life
How I Handle Money Worries
How to Minimize Tolerations in Your Life
Do you want to download a PDF copy of both of these books, then go to:
