Money 101: Master the Basics of Managing Your Finances

Know Your Numbers

The first step is understanding how much money is coming in and where it’s going. Without this clarity, it’s like trying to navigate without a map. When you know your numbers, you can make informed decisions about spending, saving, and investing. Track your income and expenses for a month. Use a digital budgeting tracker or good old pen and paper.

Create a Budget

Budgeting isn’t about restriction—it’s about prioritizing what matters to you. The 50/30/20 rule is a great place to start: 50% for needs, 30% for wants, and 20% for savings or debt repayment. A budget helps you stay on top of your finances and avoid unnecessary stress. Use this free simple budget and adjust it as needed to figure out your 50/30/20 amount needed.

Build Credit the Right Way

Your credit score impacts so much, from loan approvals to the interest rates you pay. Learning how to build and maintain good credit is essential. A good credit score can save you thousands of dollars in interest over your lifetime. Pay your bills on time, keep your credit utilization low, and check your score regularly.

Save for the Unexpected

Life happens, and an emergency fund is your financial safety net. Unexpected expenses like car repairs or medical bills won’t derail your progress if you’re prepared. Start small, even $500 makes a difference. Work your way up to 3–6 months’ worth of expenses.

Start Learning About Investing

Investing can feel intimidating, but it’s the key to growing your wealth over time. The earlier you start, the better. Inflation eats away at savings. Investing helps your money grow faster than inflation. Start with simple options like index funds or ETFs.

Mastering your money starts with understanding the basics. Take it one step at a time, and remember—it’s okay to ask questions or make mistakes along the way.