Getting on top of your finances is no easy task, especially in the beginning. Whether you’re just starting out or recovering from a financial blunder, the beginning can be the hardest obstacle to climb over. Your goals could be to save money, learn to spend it wisely, build better credit, or get yourself out of debt. If you are a beginner in personal finance, here are the best financial tips to follow:

 

Start with a Budget

 

The best tip for beginners is creating a simple budget.  By starting off with a budget, you are able to have a solid foundation to go from. Create a spreadsheet that outlines what you are spending and the money you are bringing in. By having these numbers out in from of you, you can easily see any issues you are having with your spending and where you can realistically cut back. It’s important to write down your budget and keep it in mind to remain fiscally responsible, but do not stress over it.

 

List Your Debts

 

This may be hard to do and difficult to see, but in order to get a hold on your finances, you need to see all of your debt. List all of your debt totals, the interest rates, amount of the minimum payments, loan length, and other factors. Seeing the big number might be scary, but it helps put things into perspective. It can also help to motivate you to save more and spend less irresponsibly. 

 

Know Your Credit Score

 

Knowing the number of your credit score is only the surface. In order to be strong financially, it’s imperative to understand why your credit score is that number and what is affecting it the most.  Utilize sites such as Credit Sesame and Credit Karma to keep track of your score without effecting and find the areas you need to work on. The cornerstone to a strong financial future is your credit score, so it’s important to know what yours is, how to improve it and make sure it doesn’t fall. 

 

Separate Your Savings and Checkings

 

One of the biggest mistakes you can make with your personal finances is to keep your savings in same account you use to spend your money. When you have an idea of how much money you want to save and start saving, it can easily be ruined by never separating those funds from your checking account. In order to stay organized and save money faster, make sure your savings has its own account.