Top 5 tips from Jan Chatsky for money
Jan Chatzke has made a career of helping women take charge of their finances. I’ve written more than half a dozen personal financing The books have worked with everyone from Oprah to the Association of American Pensioners.
Over the years, Chatzky has offered many wise financial wisdom on topics such as budget and investment. I literally wrote the book women with money. But while there’s no shortage of great tips to be found, there are some tips from Chatzky that still stand.
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1. Embrace your current reality
One thing Chatzky feels very strongly about is the need to be (brutally) true to yourself. You can’t make any financial progress until you do a complete self-diagnosis – and accept the results.
So instead of making a half-hearted attempt to set a budget, or setting broad goals that have little basis in your actual life, you need to detail it all. The good, the bad and the ugly – admit it all. Put everything there.
How you perform your own financial self-diagnostics is up to you. You can use a file budget app Or old-fashioned paper and pencil. Keep a spending diary, or keep a strictly traditional ledger. Whatever works gives you a realistic look at the current state of your finances.
When you know where you really stand, in all its potentially messy glory, any plans you make are more likely to succeed.
2. Just compare yourself
When all of your finances are revealed in front of you, it can be really easy to start trying to measure it against arbitrary, often external criteria. Do I have more money than others? Are my things more valuable?
Withstands. The only person you should compare your money to is you.
Instead of wondering how your Bank account Compared to your neighbors, consider it against your needs. Could your…. saving account Withstand job loss? Do you have enough money in your retirement account when the time comes?
3. Set goals – then break them down
Armed with data from your own self-diagnostics, it’s time to figure out your financial goals. And yes, that means any long-term goals you have, like retirement or Buying a home. But it should also include your mini-goals, and your short-term criteria for your financial success.
Looking at a major goal in life can be daunting. Breaking these goals down into smaller tasks can make them easier to deal with (and prepared).
“Save for retirement” he is old Goal. It often requires hundreds of thousands of dollars and decades of work. However, “saving $500 for retirement this quarter” is a much smaller goal, and one that’s more manageable. But it will still feel successful when you reach it. And that success can help you stay on track to reach your next mini-goal — and ultimately your big goals, too.
4. Automate your savings
If every dollar you save requires you to go and move it from place to place, you may not always make the trip. While that dollar is waiting for you to move it, you may end up spending it on something else.
Automating your savings helps take the human variable out of the equation. Instead of having to log in (or worse yet, go to the bank) to transfer your money from current account For your savings, automation does it for you.
Most banks allow you to set up automatic transfers in almost any amount and at any time period. You can set it up so that the money is transferred every week, every pay period, every month – whatever fits your budget. (Just remember to include this transfer in your budget so you don’t spend the money you’re trying to save.)
5. Ask for the money you want
Although some companies will offer regular employee increases, many do not; At least, they don’t if you don’t ask for it. This doubles for women, who are statistically less likely to ask for more money.
Having said that, don’t walk around the boss’s office asking for any old bonus. I know what you deserve. Do a little research to see what your skills and experience are worth in the open market so you have firm ground to stand on when discussing your salary.
You miss out on 100% of the raises you don’t order – so ask!
for each one of them
Schatzky has spent years honing her financial knowledge, and there are plenty of gems in her advice. However, no matter how careful the wisdom is, it is just as important as how it is implemented. Make sure you take any financial advice with a pinch of salt and in the context of your lifestyle and financial goals.