GenHERation partner company, NFP, took the time to share their best money practices. According to NFP experts, these are four tips to manage your money:
1) Set a weekly budget. A budget is a plan to allocate your money that will make you happiest in the short term and the long term. It also helps you stay within your means. A simple way to create a budget is by using an Excel spreadsheet. Use this spreadsheet to track your income and expenses (i.e. rent, bills, loans, groceries, etc.), and the money you have leftover to pay for the things that are important to you. Supplement your weekly budget by keeping a money journal. With a money journal, you can track your spending habits, so you can stay within your budget and plan for additional expenses.
2) Pay yourself first. While it is necessary to pay your rent and bills, you have to invest in yourself. The best way to do this is by putting money in your savings account before spending it on anything else. Usually, when people receive their paychecks they first pay their bills and other discretionary expenses, and then put money into their savings account. Instead, deposit your paycheck into your savings account and then take out money to pay for your needs and wants. You can even have your employer deposit your paycheck into your savings account rather than your checking account to make paying yourself easier.
3) Build an emergency fund. An emergency fund is money set aside that gives you a financial buffer in case you are faced with unknown expenses, including a flat tire, a home repair, or an unforeseen medical expense. You can begin building your emergency fund by setting aside a portion of your paycheck each month. This amount depends on your financial situation, but you should try to save enough to cover three to six months of living expenses.
4) Make your money work for you and grow. Invest your money. Before doing so, research different types of investment opportunities, such as stocks, bonds, funds, and real estate. Different investments carry different risks, so make sure you know your risk stress level before making any decisions. Additionally, understand and take advantage of the financial benefits your company offers. Most companies offer retirement plans and will match your investments up to a certain amount. Start saving early and take advantage of the money your company is willing to invest by maxing that out if possible.
NFP is a leading insurance broker and consultant that cares deeply about its employees’ and clients’ well-being, and takes pride in its culture of authenticity. NFP’s expertise and scale are only matched by its passion for building lifelong personal relationships. To learn more about opportunities at NFP, visit https://careers.nfp.com/.
Contributor: Keith Hoffman