While most people’s initial response is “of course not” the fact of the matter is that we are more disconnected from our money than any generation in history. Here are just a few reasons why.
I am as guilty of this as anyone else, but with my multiple digital payment options and tools—I’m often surprised at where my money is going. Beyond our debit and credit cards, we can instantly download ebooks and music, monthly digital subscriptions, transportation apps like Uber and Lyft, gaming app purchases, and payment apps. With all of these variables, you may be spending far beyond what you have budgeted for in many areas.
Credit cards should only be used for emergency purposes and while store credit cards offer great savings and discounted, all cards should be paid off each and every month. Unfortunately, this is not how most of us utilize credit. For example, purchasing a home at the top of our spending limit and applying for a new credit card when we have maxed out our current cards.
How To Reconnect
Reconnecting to your finances is easier than you think. The tips below will help:
- Take a detailed look at your last 90 days of spending.
- Set a budget for each spending category.
- Consolidate your digital spending accounts.
- Utilize cash for food, entertainment, and clothing to help you stay on budget.
- Work with a financial planner to pay off your debt and help map out your long-term saving and investment strategy.
The sooner you reconnect with your money the sooner you regain control of your financial security.