How to Manage Money Like a Boss

Tired of feeling like your money is in control of you? You know, instead of the other way around?

That’s why it’s important to manage money like a boss.

In this money gif, Issa Rae is psyching herself up to manage her money like a boss saying "you got this."

You see, I’m not “like a boss”… I am the boss.
The Godfather

To be fair, this isn’t really about managing money like a boss. It’s about becoming the boss – communicating objectives, picking the right tools, delegating, strategizing, making financial plans, achieving goals, and getting back on track if you’ve fallen off a little bit.

It’s time to start bossing up when it comes to your finances. That means making strategic decisions, setting goals, and tracking progress toward those goals.

Yeah, that’s a lot. Luckily, we’re here to help you improve your relationship with money and make the transition into money boss.

Keep reading to learn how to boss up when it comes to your money.

Effective communication

One essential leadership skill is effective communication. Some people love talking about money. They’ll share how much a piece of furniture costs and how much their annual salary is. But for others, the very idea of discussing finances is enough to send them running for the hills.

If you fall into the latter category, don’t despair. Talking about money doesn’t have to be a pain. In fact, it can be downright easy if you know how to do it.

Here are a few tips for talking about money with your friends and family like a boss:

1. Be honest about your financial situation.

Bosses are comfortable with being uncomfortable. If you’re not excited about sharing your income or expenses details, that’s okay. But try to be as open as possible about your financial situation. The more honest you are, the easier it will be to find solutions that work for everyone involved.

2. Be respectful of other people’s money situations.

Bosses respect boundaries. Just because someone is comfortable talking about money doesn’t mean they’re okay with sharing all the details of their financial life. Work within the space of what you need to know to make progress.

3. Avoid making assumptions.

Bosses don’t make assumptions; they make decisions based on data and facts. This means looking at your statements, not your social media feeds.

4. Focus on finding solutions, not placing blame.

Money problems can be frustrating, but it’s important to remember that everyone is trying their best. Instead of blaming, bosses focus on finding creative solutions that work for everyone involved.

5. Ask questions if you’re unsure about something.

Bosses are okay with not knowing everything. If you’re not sure about something, don’t be afraid to ask questions. The more you know, the easier it will be to find a solution that works for everyone.

Money boss tools

The most important thing when managing your money is picking the right tools for the job. Think about it this way – would you try to build a house with just a hammer and saw? Of course not! You need a variety of tools to get the job done right. The same is valid for money management.

There are a few fundamental tools that you’ll need to manage your money effectively.

Spending Plan

Image of income and expenses in the Nav.it app. Gains include income. Expenses include groceries, healthcare, restaurants, pharmacies, and unsorted.

A spending plan allows you to track your income and expenses, see where your money is going, and adjust accordingly.

Without a spending plan, it’s too easy to overspend and end up in debt. But with a spending plan, you can stay on track and make sure your money is working for you.

Here are four reasons why a spending plan is a boss money move:

1. It Keeps You Organized

A spending plan helps you keep track of your income and expenses so you can see where your money is going. This can be a lifesaver when it comes time to pay bills or make financial decisions.

2. It Helps You Save Money

A spending plan can help you save money by uncovering where you can cut back on expenses. This frees up cash you can use to pay down debt or save for future goals.

3. It Helps You Stay on Track

A spending plan can help you stay on track financially by reminding you of your goals and helping you stick to your budget, reducing impulse purchases that can derail your financial plans.

4. It Gives You Peace of Mind

A spending plan can give you peace of mind by helping you feel in control of your finances. This can help reduce money stress and anxiety, leading to better financial decision-making.

A spending plan is a powerful tool that can help you take control of your finances. If you don’t have one, now is the time to start. It could be your best money move to date.

Shameless plus: the Nav.it money tracking app was designed specifically to help you manage money like a boss.

Delegation and Automation

Next, you’ll need a little backup. There are only so many hours in a day, which is why a boss hands off projects.

Meet the boss’s best friend: automation.

If you’re not already using automation to manage your finances, you’re missing out on one of the biggest money hacks around. Automating payments, savings, and investments can save you time and money while helping you stay on top of your financial goals.

Here’s a breakdown of how automation can help you with your finances:

1. Automating payments can help you avoid late fees and interest charges.

2. Automating savings into separate bank accounts helps you avoid spending.

3. Automating investments can help you diversify your portfolio and stay on track with your investment strategy.

This could be as simple as a spreadsheet or a more sophisticated tool like Mint.com.

Many different tools exist to help you manage your money. The key is finding the best one for you and your situation.

Set financial goals like a boss

One of the most important things you can do as a boss of your finances is to set goals. And not just any type of financial goals, we’re talking boss goals – S.M.A.R.T goals.

What is a SMART goal?

SMART is an acronym for Specific, Measurable, Achievable, Relevant, and Time-bound. Let’s break each of these down:

Specific: Your goal should be specific and clearly defined. For example, “I want to save $10,000 in the next two years to put a down payment on a condo” is a specific goal.

Measurable: You should be able to track and measure progress toward your goal. In our example, you could break down your goal into monthly savings targets. If you save $500 a month, you could have $10,000 saved in 20 months.

This could mean automating your savings in a separate account or simply keeping a close eye on your bank account balance. This way, you can adjust your spending if necessary and ensure you’re still on track to reach your financial goals.

Achievable: Your goal should be realistic for you to achieve. If you have less than $500 of disposable income (money to spend) in the month before setting your goal, it might be hard to start saving $500. Remember, if your goal is too unrealistic, you’ll likely become discouraged and give up.ed and give up.

Relevant: Your goal should be relevant to your overall financial goals. For example, if you’re trying to get out of debt, saving for a luxury vacation might not be the most relevant to saving for a down payment.

Time-bound: Your goal should have a specific timeframe attached to it. This will help you stay on track and motivated to achieve your goal.

Remember these tips to strategize, plan, and achieve your SMART financial goals like a boss.

They will help you focus your spending and ensure that your money is going toward things that are important to you. For example, if you want to save up for a down payment on a house, you’ll need to know how much you need to save and make a plan for reaching that goal.

Bosses own their mistakes

Of course, bossing up your finances isn’t always easy. There will be times when you make mistakes, or things don’t go according to plan. But don’t worry – these setbacks are just part of the journey. The most important thing is learning from your mistakes and moving forward toward your goals.

Ready to start bossing up your finances? We can help you start budgeting, goal setting, and more. Send an email to hello@nav.it to begin.