Managing money doesn't come naturally to a lot of people. Making a budget — and sticking to it — may seem time-consuming and tedious. We're here to help with a brief introduction to money management that will help you take control over your spending and find ways to save. Keep reading for three easy tips on how to manage your finances.
If you find that your spending is out of control or you are not saving as much money as you should, you may be overlooking the three basic principles of money management:
1. Spend less than you earn.
2. Strategically use your money to earn a return.
3. Save money for the future.
Sounds simple enough, right?
But putting these rules into practice takes some planning, discipline and a bit of skill. These tips will help.
1. Create a budget. It may seem like a lot of work, but you can't effectively control your finances if you don't understand your income and expenses. Many financial experts recommend the 50/20/30 plan when developing a budget.
First, tally up all of your monthly income and divide it into three spending categories:
Consider making adjustments to the other categories if you are not able to allocate 20% of your income to savings, starting with your flexible spending.
2. Deposit money into savings products that earn interest and dividends. High yield savings accounts, certificates of deposit and money market accounts can help you to maximize your earnings.
3. Allocate money for retirement. It is never too early to begin saving for retirement, but it can be too late. Wise money managers earmark a healthy portion of their savings to retirement funds. Savvy savers also use savings products, like an employer's 401(k) or an IRA, to maximize their retirement funds. Try to max out your contribution to your 401(k) to make the most of your employer's matching contributions.
Consult with a tax adviser or financial planner before contributing to an IRA to make sure you choose the best type of account for your circumstances.
Synchrony Bank can help you manage your money more effectively. In addition to our award-winning customer service, we offer high yield savings accounts, CDs, IRAs and money market accounts.
Customers also find that we have no minimum balance or monthly service fee on our high yield savings account. Our accounts are FDIC-insured up to $250,000 per depositor for each ownership category.
For more help managing your money, call Synchrony Bank at 1-844-345-5789 or click here to open a savings account today.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of .
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.