4 Tips to Guide Your Financial Management
July 28, 2023
Money causes stress. In fact, 90% of Americans say money impacts their stress level, according to a survey by Thriving Wallet. While this fact may not be new, there are many old adages about money that can guide people toward wiser financial management.
“With so many things we need to buy and many others we want to buy, it’s easy to get overextended by monthly purchases,” said Don Agee, AVP Branch Manager (NMLS# 985262). “While some may sound cliché, there are many idioms about money that can teach us lessons about proper money management, and with many, you can rely on Iowa State Bank to help.”
Four Ways to Enhance Your Finances
1. Tighten your belt — If your finances have taken control of you, it may be time to take a long, hard look at your budget. Look for items you can cut, such as subscriptions you’re not using or no longer need. Tightening your belt may also mean making some lifestyle changes and giving up something, such as cutting back on the number of trips you make to your favorite coffee shop.
2. Save for a rainy day — An emergency fund can help when unexpected expenses come up. Most experts recommend having three to six months of living expenses in your emergency fund. Building an emergency fund will take the sting out of your finances when the inevitable rainy day arrives.
3. A penny saved is a penny earned — Saving for the future with a retirement account, such as a 401(k) or IRA, is crucial to ensuring you are financially secure when you’re ready to retire. Because these types of accounts earn interest, your account can grow even if you’re unable to contribute. And if you contribute regularly, it will grow even faster, earning you more pennies on the pennies you save.
4. Pay yourself first — Make saving automatic by pledging to pay yourself first. Whether it’s adding to your retirement savings, emergency fund or general savings, you will never regret having more money saved for when you need it most.
Ask Iowa State Bank for Help
For help building your savings or managing your budget, contact Don Agee, AVP Branch Manager (NMLS# 985262) at 515-246-6369 or message him today.