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9 Ways to Be Financially Responsible For Life

There’s no denying that adult life is full of responsibilities, not least having to gain the ability to successfully manage your money. It’s very easy to worry that your nest egg isn’t what it should be, but luckily, there are numerous tips and tricks that you can learn in order to keep your finances right on track. Here are 9 ways to know that you’re good with money even if you believe you’re not:
 
1. You have a budget 
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It’s important to know exactly how much money you make and where it all goes each month. Keeping track of what’s coming in and going out will help you avoid tapping into your savings to cover everyday expenses. Budgeting can also help you identify where you can cut unnecessary spending. Apps like Mint and EveryDollar are great places to start should you need to begin keeping track of your finances.
2. You can cover your bills each month 
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Always keep track of when your bills are due, pay them on time and in full. You should always be able to cover your monthly expenses without needing to borrow from the next month’s budget.
3. You have clear financial goals and are actively working toward them
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It’s never too soon to start saving, especially if you’re aiming to buy a home, start a business, or pay for your children’s education. Set some clear financial goals and begin saving to work toward reaching them.
4. Planning ahead vs. impulse buying
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If you want to take that big vacation or make another large purchase sometime in the future, you should definitely allow yourself time to save for these expenses and avoid having to use credit to cover them. An added benefit of this is having time to shop around for the best deals and find yourself a bargain.
 
5. You only buy what you can afford 
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Living within your means is essential if you want to maintain good financial health. For instance, if you know that you’re prone to overspending, then simply do away with having a credit card. Similarly, if you lose track of how many times you visit an ATM or swipe your debit card, then you might be better off just carrying the cash that you need and only withdrawing when the amount that you’ve budgeted runs out.
6. You use credit wisely 
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If you do use a credit card, or even multiple credit cards, then you should have the ability to pay off the outstanding balance or balances every single month. This will allow you to avoid interest and finance charges. Always be on the lookout for credit cards that offer you incentives for using them. Two of the biggest perks you can look for are airline miles or cashback.
7. You save regularly 
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It’s a fact of life that a rainy day will come when you least expect it, so it’s always a good idea to have some savings to prepare for the arrival of such a day. This will allow you to avoid the stress of having to borrow money from family or friends, or having to pay off interest charges that inevitably come when you have to use credit. Open a savings account and build up savings amounting to at least three months’ worth of expenses.
8. You're planning for retirement 
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Being financially responsible doesn’t just entail planning for the near future – it also entails planning for the distant future too. Knowing that you have a financial plan in place for when you finally stop working can give you plenty of peace of mind. If your employer offers you a sponsored retirement plan, then you should contribute the maximum amount that it will match.
9. You double check for unnecessary fees 
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Pay close attention to your next bank statement – you could be losing lots of money to maintenance fees and balance charges. You can try switching to an online bank, which will likely offer you a free checking and savings account when you join it.
 
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