The ongoing coronavirus pandemic has highlighted the financial struggles confronting the vast majority of Americans. Namely, three-quarters of us face financial difficulties when our paychecks are delayed for even one week.
Living paycheck-to-paycheck is a far too common reality for millions, but that doesn’t mean it has to continue to be. There are ways to pad your savings right now. (CNBC)
Douglas Boneparth, president and founder of Bone Fide Wealth, says saving comes down to “balancing a subjective lifestyle against your saving goals.”
This of course requires a little effort and sacrifice. But before you can even begin saving, Boneparth says you need to understand your financial parameters by mastering your cash flow. This can be achieved simply by doing these three things.
Get a clear picture of your finances
Determine where your money is going. This involves going back into past credit card statements and identifying your spending habits. Thankfully, there are many automated services, like Mint and Tiller Money, that generate trend reports to identify your monthly purchases, listing them by category, merchant and amount spent. This is the process of “intimately understanding” how money comes into and goes out of your life, Boneparth says adding that people who do not have a firm grasp on this are setting themselves up for a financial rut.
Continue reading at CNBC.