You might feel overwhelmed and powerless when it comes to managing your finances. But it’s not as hard as you think.

With these 11 simple steps, you’ll be well on your way to achieving your financial goals.

Create A Budget

It might seem like a no-brainer, but you’d be surprised how many people neglect this important first step. A budget is the most basic building block to any financial plan. You simply can’t achieve anything without it.

Know Your Net Worth

Even if it’s painful to look at, your net worth is just as important as your budget. Take some time to review your net worth every month, and track any changes.

Know Your Credit Score

No matter how well you think you’re doing, a poor credit score can end up costing you big money down the road. Review your credit report and check your score regularly.

Keep Your Saving And Checking Accounts Separate

A percentage of your income should automatically go into a separate savings account every month. Separating it from your checking account helps you avoid thoughtlessly spending your savings, especially if you keep each account in a different bank.

[IDP_CONTENT]

Buy Experiences, Not Things

When you do spend, you want to be sure you’re getting as much happiness as possible for the value of the money. Studies show that experiences give you a bigger bang for your buck as opposed to material possessions.

Be Careful Of Fees

With any investment, fees can take a sizable chunk out of your profit. Pay attention to the fees that you’ll be charged for things like index fund management and account maintenance. It’s not realistic to think you can eliminate fees completely, but it helps to be aware of them so that you can avoid at least the highest ones.

Make Sure You Have Enough Life Insurance

The basic life insurance policy provided by most employers won’t be enough, so look into purchasing more. This can make all the difference in providing a necessary financial cushion to your family.

Keep An Eye On Interest Rates

Work to pay off those debts with the highest interest rates first, before moving on to others. When you open a savings account, make sure to choose the one with the lowest interest rate.

Save 20% Of Your Income

When it comes to budgeting, strive for the 50/20/30 rule: 50% for essential priorities, 30% for lifestyle choices, and 20% to save for financial goals. Which reminds us...

Have Financial Goals

Figure out what your financial priority is. Is it to build an emergency fund? Pay off a credit card? Formulate a goal and stick to it.

Match Your Company’s 401K Contributions

If you work for a company that offers to match your 401K/IRA contributions, make sure you take full advantage. Otherwise, that’s money left on the table.

[IDP_CONTENT]

With these simple rules, you’ll be well on track to achieving whatever goals you’re dreaming of, along with a more stable future.