How Do You Become Fiscally Responsible?
There isn’t a magic number that indicates that you are fiscally responsible. Instead, the kind of behavior you have when it comes to spending is the deciding factor.
Know Your Net WorthNet worth is an indication of someone’s financial situation. It is not how much a person makes in a year. Instead, net worth is the dollar amount of one’s assets minus their liabilities or debt.
A proper budget can help prevent anyone from overspending. People may not like budgets because it makes them feel restricted. When in reality, a successful budget can give people freedom with a planned amount!
Once you create a budget, the next step is to track your spending and follow it. Tracking can be done easily using Google Sheets. Or, you can use an online service like PocketSmith to track your spending.
Reducing your debt is one of the ways to increase your net worth.
A strategy I recommend to pay off several debts is the debt snowball method. This method doesn’t focus on paying the bad highest interest debt first. Instead, it focuses on paying down the lowest debt balance first.