When I got my first full-time job, I spent more dollars than I brought home. For the first six months of my career, I wasn’t aware of where exactly my dollars were going. At the time, it didn’t feel like I was on a bad financial trajectory because I had a few thousand dollars in my checking account that I had saved up during college from work and scholarships, and I was contributing to my work’s 401(k). It’s only now — working as a personal financial educator — that I can clearly see the layers of problems with my old cash management habits.
The majority of Americans have issues with cash management. Cash flow management is a skill, and like any other skill, it needs to be learned and practiced. After following these five tips, I unexpectedly got on track to retire in my 40s, improved my relationship with spending, and saved more than half of my paychecks.
Related: Nearly Half of U.S. Employees Indulge in This Controversial Habit While Working Their 9-5
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