Many people wonder how to best achieve a calm, healthy, and balanced state with their finances. As we grow, financial needs evolve, develop, and change.
As this concept expands, you’ll discover there are key principles, which help you achieve balance in your financial world. The below tips will help ensure you funds makes ends meet and hopefully with a little bit left for yourself.
Financial stress is the biggest issue in relationships. In a recent survey from The Harris Poll and Ally Bank, Americans confirmed that money was at the top of their relationship stress. Interestingly, 44% of young Americans pointed to money as the biggest stressor. Yet, only 23% of older adults said the same.
Millennials are feeling the financial strain more than Baby Boomers.
If financial stress is affecting you and your partner, take action to improve the situation.
Noticing a problem is the first step towards resolving it. If you’re feeling stressed, you don’t have to work through it alone. You may want to speak with a financial planner, coach, or consultant to get input from an objective expert.
Speak openly with each other about financial decisions. Make a game plan that includes both of your perspectives. Identify what matters most to both of you. And, start saving to build the financial base so you can realize your dreams.
START WITH SIMPLICITY
Whether you’re currently traveling or planning to travel shortly, simplicity helps you keep an eye on your money. It’s better to be safe and simple—especially while traveling.
Many professional nomads prefer to automate all their banking. Do you live in San Diego? If so, you may already have a local bank. However, you can still enjoy the benefits of a credit union.
A local credit union listens to the financial needs of their community. This is why so many people open accounts at a credit union. The options often offer greater flexibility and better interest rates.
For simplicity’s sake, financial experts advise starting with the fewest number of accounts. A good start is to open a checking account, plus one or two savings account.
Organize automatic financial transactions to streamline money transfers and payments. By focusing on simplicity, you can avoid the time-consuming task of manually tracking transactions.
BUILD THE HABIT OF SAVING
Once you’ve got the basics handled, consider how to start saving. Talk with your partner and work together to look at finances from this angle.
Saving is a big part of building a solid financial base. Saving responsibly is a habit that you can start, grow, and cultivate. Financial planners encourage people to save by opening multiple accounts.
By earmarking funds towards specific aims, you can budget, manage several goals, and develop the habit of saving.
What are your priorities for each account? Investigate your goals such as exploring the islands of Hawaii, going to Disneyland, or buying a new car. Consider big goals such as paying off debt, going to school, or starting a college fund for your newborn.
When you organize savings accounts according to your life goals, you can start to make headway on your vision.
FOCUS ON BENEFITS
In financial life, it’s helpful to look at the perks offered by different institutions. This is one reason why multiple accounts can be useful. Multiple accounts enable you to take advantage of different types of perks offered by different institutions.
One bank may have a lot of ATMs. Another may offer higher dividend rates. A third may offer an attractive bonus for opening an account. Perhaps one credit union offers access to apps, which ultimately simplifies living a mobile lifestyle.
Explore the benefits that are most important to you. Look at your lifestyle, values, and travel habits. Align your financial choices to match what matters most to you.
As you explore the benefits of multiple accounts, evaluate risks. There is a danger that with so many attractive options, you could create a very complicated network. Be alert to this as it could hinder your overall goals. With too many accounts, you might fail to notice fraudulent activity, pay extra fees, or have to pay penalties for falling below a minimum balance.
When you’re just starting, getting a checking account, a credit card, and a savings account is a big deal. And, it’s a personal achievement too.
As you grow, things get more complex. You and your partner may enjoy having more than one account. You can save money on specific projects and visions. Focusing together on financial actions can help you realize your dreams.