7 ways to get better with your finances
Editorial staff, J.P. Morgan Wealth Management
Building financial habits is the same as many other skills: practice makes perfect. If you aren’t invested (no pun intended) in handling your finances yet, we can help.
We broke things down into two separate categories: steps you can take in the short term and steps you can take over the longer run.
Here are three simple short-term financial habits you can practice this week.
Identify your spending habits.
Knowledge is power – if you know where your money’s going, you can be in control of it.
Calculate rent, tuition, car payments or any other big recurring expenses. Then think about how much money you have left over each month.
For specific details on your habits, there are apps that can tell you how much you spend on each type of expense – like restaurant food, for example.
Be realistic about your spending habits.
It’s your money, and you can prioritize how to spend it.
Do you have something that you like to splurge on, and you’re not ready to give it up?
Don’t beat yourself up over these types of expenses. However, do try to give yourself a limit. You can work whatever your favorite expense is into your monthly costs. If you have a framework for your spending habits, it’ll be easier not to spend limitlessly.
Set a savings goal.
And if you don’t reach your first goal, don’t give up.
Start with just one month as the timeframe for your goal. Say you want to see if you can save an extra $300 this month.
If you can accomplish one savings goal, you’ll grow confident that you can do it again. If by the end of the month, you don’t reach your goal, then consider readjusting for the next month.
Just like the market, your personal finances may very well need to be continually assessed and adjusted, and that’s perfectly okay.
Okay, now: Let’s discuss the long-term habits.
Consume financial content.
An excellent way to fight boredom on your morning commute.
Once you’ve gotten practice handling funds, you can spend some time:
- Reading on-topic articles
- Listening to financial podcasts
- Following reputable financial sources on social media
- Signing up for financial newsletters
- Reading the finance section of the newspaper
- Checking out finance-related books from the library
Interested in working with an advisor?
Work 1:1 with our advisors to help build a personalized financial strategy that’s built around you.
Take finance classes.
Interest rate hikes? Could talk about ’em for hours.
This may not be for everyone, but if you have the time and resources, introductory financial courses are a great option. Some key financial concepts that intro level courses are likely to cover include:
- The stock market
- Investing
- The Fed & interest rates
- Inflation
- Taxes
Invest!
You heard that right – your money has the potential to make money for you.
Investing can be a key component to building wealth. When you invest your money, you’re setting yourself up for the potential to earn extra money on top of your regular income.
While investing doesn’t always earn money (or, in financial lingo, “returns”), it’s a worthwhile hedge against inflation. As history has shown, markets tend to trend higher over the long run, so the longer you stay invested, the better your chances may be at earning returns.
Lastly, speak to a financial advisor.
Feel confident with how your money’s being handled.
In addition to helping clients manage their funds, the best advisors are educators.
Your advisor can guide you through the ins and outs of financial questions, from introductory topics such as “How do I begin investing?” to more in-depth topics such as “How might my investments react to market dips?”
Invest your way
Not working with us yet? Find a J.P. Morgan Advisor or explore ways to invest online.
Editorial staff, J.P. Morgan Wealth Management
