Through life’s events, both good and bad, we all have to deal with money management. But whether there’s a lot of money in your checking accountor a little, we often wonder what the right amount is to have. But is there a “right amount”?
Ultimately, the amount of cash any individual should have depends on the person’s expenses and lifestyle. Any individual’s income should be able to sustain all expenses. It seems obvious, but it’s often surprising to learn that most individuals often live outside of their means, sinking them into debt, disrupting their credit history, and even causing them to struggle putting food on the table.
It shouldn’t come as a surprise to most that poor money management can cause an influx of issues and financial hardships. However, regardless of what some people think, financial hardships can be avoidedwith a little effort.
Live within Your Means. This is a major factor when it comes to money management. Many individuals are quick to spend money without considering the amount or what it could do for an individual’s debt management situation. If individuals make the commitment to live within their means, they will find that debt will be paid down rather than accrued, which will help to avoid financial hardships.
Avoid Overspending. Overspending can certainly lead to financial woes. Avoid this by simply setting a budget and sticking to it. Whether it’s grocery shopping, gift shopping for the holidays, or going on vacation. Yes, everyone is entitled to a little fun every now and again, and you can have it, just plan for it. Planning can go a long way and make all the difference.
Making Commitments. Making commitments to save and invest can also increase financial security over the long term. Saving and investing takes discipline, as well as a combination of the above points. So what is the right amount to save? Like we mentioned above, similar to considering what is the right amount to keep in your checking account, it all depends on income, expenses, and lifestyle. You should be able to save what you can, and make some sacrifices as needed to meet those goals.
So what is the right amount to keep in your checking account? The answer here is whatever is needed to comfortably pay your bills and keep up with expenses. Whatever you don’t need to pay your bills should go into a separate savings account. Prior to receiving your paycheck, take the time to figure out what’s coming in versus what’s going out and plan accordingly. Yes, there are always those weeks where you will need every dime or you need more than what is coming in. However, in those emergency situations, this is when it is helpful to have some padded cash nearby.
While it is almost impossible to plan for every emergency that could come up, it’s helpful to have a plan together, even if it is a small one…if nothing else, for a peace of mind. However, for those instances when what you have isn’t enough, or you are struggling to get ahead, count on Affordable Title Loans. Affordable Title Loans can help with debt management by loaning a small to medium-sized lump sum of cash at a competitive rate and using your vehicle as collateral until the loan is paid in full. Contact us today to find out how title loans can help you and your checking account.