Men and Women are different in many aspects of life, and money is no exception. From the way one acquires funds to the spending habits to keeping savings – differences abound. If you think that may not be the case, here are some numbers for you:
- Around 31% of American men are thinking about dipping into their retirement funds when the need arises, as opposed to 23% of women.
- Only 14% of men would consider downsizing their lifestyle in tough times, opposed to 25% of women.
- Men also tend to carry more debt with higher mortgages than women. They also have a higher chance of being late with the mortgage payment.
From these few snippets, it seems that men are prone to risky behavior with their funds. In today’s uncertain economic climate and with the pandemic threatening a variety of jobs, it may be wise to handle money with care. Here are some tips on how to handle your finances in a meaningful way:
Change your mindset
It is not about having enough for food and clothes. You need to change the way you think about money and what it means to you. Be sure to know who you are and what you want to accomplish with money. Focus on positive aspects of life – there are always some. Also, try to visualize the best version of yourself and act upon it.
Create and maintain an emergency fund
If you have not done so already, plan and start creating your emergency fund. All it takes are small steps. Put aside a couple of bucks each day, and it will yield a thousand or more after a year. Also, do not dip into it unless it’s an emergency. Set it up so that it’s not easy to get money from it; that way, you’ll avoid unnecessary spending.
Stop comparing yourself to others
It is nice when we can show our friends how successful we are – with a brand-new car or a larger house. What’s not so great is overspending so much that your signs of success make your budget suffer. Practice living within your means. Don’t let showing off lead you into financial troubles – it’s not worth it.
Do your research
Before you embark on a journey to invest in something important, like a flat or car, do research. Explore all the possibilities and write down the pros and cons of every possible way you can finance your idea. If you are thinking about getting a new vehicle, look for several deals on car loans. Do not take the first one you find – compare them all and see which gives the most value for the buck.
Pay with cash
Today’s economy seems as if it all turned into virtual earnings and spending. Even so, you should still rely on good, hard cash. It gives you a sense of control, unlike a plastic card that seems to have unlimited money. You also get in physical contact with spending and it makes you value your hard-earned cash more.
Track your spending
It is not only the big expenses that influence your budget. The little things often add up. Start tracking your spending, even to the tiniest amount. The idea is to have a clear vision of your expenses and where your money goes. It also helps you get in touch with spending habits that are bad for your budget.
Focus on passive income
If you have a place for rent, you can boost your finances with it. Have an idea for a book or similar artistic product? It also becomes a source of money. It does not have to be a physical thing. Online courses and subscription services can be a great source of passive income, especially with people spending more time indoors.