Why “Winging It” Won’t Work for Managing Your Personal Finances

Issues with managing personal finances

Photo by Fabian Blank on Unsplash

Some people simply don’t like tackling their money issues head-on. They’d rather live in denial than face the truth about managing personal finances. “Winging it” may work for a short time, but it’s not a sound long-term plan for paying down debt or put together a plan for savings.

Are you one of those people who hate putting together a budget, monitoring your checking account, thinking about carving out an emergency fund, or looking at your credit score? In this article, we’ll explain why it’s so important to be honest with yourself about your personal financial situation and to put together a plan for success.

If You’re Winging It, Then You’re Never Going to Save Money

Saving money requires actively looking at your income (and credit card statement) and deciding how much you’re going to put away in a savings account on a regular basis. If you’re not thinking about how much you’d like to save, then you’re simply going to spend any extra money you have on things you may not need, because you’ll be under the false impression that you have an endless surplus of money.

Check out these easy-to-use budget templates to help you get started. If you are constantly on the go, these personal finance apps will help you manage your personal finances on a mobile phone or tablet.

If You’re Winging It, Then You May Not Even Know Your Credit Score

Some things - like applying for an auto loan, buying a house, or sometimes obtaining a student loan, require a good credit score. If you’re winging it, then you probably don’t know your credit score. When it comes time to do things like buy/lease a car or buy a house, then you won’t be prepared and will have to face the truth about your money management. Repairing your credit score can take many years, and it’s best you start now - with a plan.

Our DIY Guide to Repairing Your Own Credit outlines this plan with clear, actionable steps, including:

  • How to determine if your credit score is in need of repair
  • Understanding your legal rights in this context
  • How to obtain your credit reports — at no cost
  • How to review your credit reports for key details
  • How to file disputes
  • How to consult experts for further advice

Read the entire resource for full details. Being able to comprehend and articulate financial management topics like interest rates, the inner workings of your bank account, and even retirement account will go a long way towards helping you build better financial habits.

If You’re Winging It, You're Not Taking Managing Your Personal Finances Seriously

Avoid shopping to better manage your personal finances

Photo by Charles 🇵🇭 on Unsplash

It’s nice to treat yourself every once in a while, but what if you’re treating yourself too often and don’t even realize it? If you’re winging it and don’t have a budget and concrete financial goals in place, then you don’t even know where your money is going. When you’re aware of your purchases, you can be more mindful about how you spend your money and maybe even save yourself from the clutter that comes with buying “things.”

Take Charge of Managing Your Personal Finances

Instead of being in denial about your spending, take some time to ask yourself why you’re so hesitant about facing your finances. Knowing your credit score and being aware of your spending can be a scary feeling, especially if you’ve been overindulging lately. However, you’ll never get on the right financial track and build your savings if you’re not honest with yourself.

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