How to Manage Money? Expert Julie Cash Shares Tips

Why Money Stress Is Real (And Why You’re Not Broke Because You’re Bad)

First things first: if you’re stressed about money, that doesn’t mean you’re bad with it. Money stress is one of the leading causes of anxiety and relationship problems in America, according to financial wellness research. You can be smart, capable, and hardworking and still feel lost when it comes to your finances. The system wasn’t exactly designed to make this easy for us.

Most of us grew up without solid financial education. We weren’t taught about compound interest, inflation, or how to negotiate our salary. We learned about money by watching our parents (who might’ve been stressed too), making mistakes, and figuring things out through trial and error. That’s a lot of pressure to put on yourself.

Here’s what I want you to know: you can absolutely turn this around. It doesn’t matter if you’re starting from zero, in debt, or just feeling totally overwhelmed. The money principles that work are actually pretty simple—they just require consistency and self-compassion.

The Foundation: Understanding Your Money Mindset

Before we dive into spreadsheets and strategies, we need to talk about the stories you’re telling yourself about money. Your money mindset—the beliefs and attitudes you have about finances—shapes every decision you make with your paycheck.

Maybe you grew up thinking money was scarce and something to hoard. Maybe you watched people struggle financially and decided you’d never let that happen, which sometimes means you’re too afraid to spend anything. Or maybe you’re in the opposite camp and believe money should be enjoyed now because you can’t take it with you. None of these are inherently wrong, but they do shape your behavior.

Take a moment and think about the statements that resonate with you: “I’ll never be able to afford that.” “Rich people are greedy.” “Money doesn’t matter, only happiness does.” “I’m just not good with numbers.” These aren’t facts—they’re beliefs, and beliefs can be changed. When you start building wealth, you’re not just changing your bank account—you’re changing your relationship with money.

The goal here isn’t to become obsessed with money or to feel guilty about enjoying your life. It’s to develop a healthy, balanced relationship where you’re making conscious choices instead of letting money happen to you.

Track Everything (Yes, Everything)

I know, I know. “Track my spending” is about as fun as a dental appointment. But here’s why it matters: you can’t manage what you don’t measure. Most people have no idea where their money actually goes.

You don’t need to be intense about this. You’re not creating a complicated system—you’re just getting visibility. For the next month, write down everything you spend. Coffee, gas, subscriptions, groceries, that impulse Amazon purchase at midnight. Everything.

Use whatever tool feels easiest: a notes app, a spreadsheet, or an app like Mint or YNAB. The method doesn’t matter as much as doing it consistently. After a month, you’ll have real data about your spending patterns, and that’s gold. You’ll probably discover some things that surprise you (“Wait, I spend how much on coffee?”), and that’s exactly the point.

This isn’t about shame or judgment. It’s about information. Once you see where your money is going, you can decide if that’s where you actually want it to go. Maybe it is—and that’s okay. But maybe you’ll realize you’re spending money on things that don’t align with your values, and that’s when real change becomes possible.

Build a Budget That Actually Works

Everyone talks about budgeting like it’s some restrictive diet for your money, but it’s really the opposite. A budget is a plan for your money—it’s how you tell your dollars where to go instead of wondering where they went.

There are tons of budgeting methods out there, and the best one is the one you’ll actually use. Here are a few popular approaches:

• The 50/30/20 Rule: 50% of income to needs (housing, food, utilities), 30% to wants (entertainment, dining out), and 20% to savings and debt payoff. It’s simple and gives you a framework.
• Zero-Based Budgeting: Every dollar gets assigned a job. Income minus expenses should equal zero. It’s detailed but really powerful if you’re trying to be intentional.
• The Envelope Method: Allocate cash to different spending categories. When the envelope is empty, you’re done spending in that category. Surprisingly effective because cash feels more real than digital money.
• The Pay-Yourself-First Approach: Automatically move money to savings first, then budget the rest. This works great if you’re trying to build wealth consistently.

Start with whatever feels manageable. You can always adjust. The key is that your budget should reflect your actual life and your real priorities, not some idealized version of yourself. If you love going out with friends, budget for it. If you’re passionate about books, make room for that. A budget that doesn’t account for the things that bring you joy is a budget you won’t stick to.

The Emergency Fund: Your Financial Safety Net

An emergency fund is unglamorous but absolutely essential. It’s money set aside specifically for unexpected expenses—your car breaks down, you lose your job, you need a medical procedure. Without this safety net, one bad thing can spiral into debt, stress, and financial chaos.

Aim for at least $1,000 to start (this covers most car repairs and medical emergencies). Once you have that, work toward three to six months of living expenses. This might sound like a lot, but you don’t need to do it overnight. Even $50 per paycheck adds up.

Keep this money in a separate, high-yield savings account where you can access it quickly but it’s not mixed in with your everyday spending money. Think of it as your financial cushion—the thing that lets you make good decisions instead of panicked ones when life happens.

Here’s the beautiful part: once you have an emergency fund, you can breathe easier. You’re not one car repair away from a credit card spiral. You have options. And options are everything when it comes to financial peace of mind.

Tackling Debt Like a Pro

Debt is one of those things that can feel absolutely paralyzing. You look at the number and think, “I’ll never get out of this.” But here’s what’s true: debt is a math problem, and math problems have solutions.

First, list all your debts with their balances, interest rates, and minimum payments. This is your debt inventory. Seeing it all in one place is actually empowering because now you can make a plan instead of just feeling vaguely anxious.

There are two popular strategies for paying off debt:

• The Debt Snowball: Pay off your smallest debt first while making minimum payments on everything else. When you pay off that first debt, roll that payment into the next smallest debt. You get quick wins, which builds momentum and motivation.
• The Debt Avalanche: Pay off the debt with the highest interest rate first. This saves you the most money mathematically, but it can take longer to see progress.

Choose whichever one you’ll actually stick with. The best strategy is the one that keeps you motivated and moving forward. Some people need quick wins; others are motivated by saving money on interest. Both work.

While you’re paying down debt, also think about whether you can negotiate your interest rates. A simple phone call to your credit card company asking for a lower rate sometimes works. If you’re struggling to make payments, look into debt management programs through the Consumer Financial Protection Bureau. You’re not alone in this, and there are resources.

Investing Basics for Beginners

The word “investing” might make you think you need to pick individual stocks or have a fancy brokerage account. You don’t. Investing is really just letting your money work for you over time.

If your employer offers a 401(k) match, that’s free money—seriously, contribute enough to get the full match. It’s one of the easiest ways to build wealth. If there’s no match or you need additional investing, consider a Roth IRA, which lets your money grow tax-free.

For most people, the simplest approach is investing in low-cost index funds or target-date funds. These give you instant diversification, low fees, and proven long-term growth. You’re not trying to beat the market; you’re just trying to participate in it consistently over decades.

Start with what you can afford—even $50 per month compounds into significant wealth over 20 or 30 years. The magic of compound interest means your money makes money, and that money makes more money. Time in the market beats timing the market every single time.

If investing feels overwhelming, resources like Investopedia have free educational content to help you understand the basics without the jargon.

Automate Your Way to Success

Here’s a secret: the best financial system is one that runs without you having to think about it constantly. Automation is your friend.

Set up automatic transfers to your savings account on payday. Set up automatic bill payments so nothing gets missed. Automate your investments so money goes into your retirement account before you even see it. When money moves automatically, you’re not relying on willpower or motivation—you’re relying on a system.

This is how people who aren’t naturally disciplined still build wealth. They make good decisions once (setting up the automation), and then the system does the work. You can literally set it and forget it.

Start with one automation—maybe automatic transfers to savings. Once that feels normal, add another. You’re building a financial system that supports your goals without requiring constant effort. That’s the whole point.

FAQ

How much should I have in an emergency fund?

Start with $1,000, then work toward three to six months of living expenses. If that number feels huge, remember you don’t need it all at once. Even $25 per week adds up.

What’s the best budgeting method?

The best one is the one you’ll actually use. Try different approaches for a month and see what sticks. You might combine methods—using the 50/30/20 rule as your framework but tracking with the envelope method.

Should I pay off debt or invest?

If your employer offers a 401(k) match, get that match first (it’s free money). Then focus on high-interest debt. Once you’re debt-free except for a mortgage, ramp up investments. The order matters less than consistency.

How do I know if I have a money problem or a money mindset problem?

Usually both. Your mindset affects your behavior, which affects your results. Work on both simultaneously. Track your spending to get real data, and examine your beliefs about money to understand why you make the choices you do.

Is it too late to start building wealth?

It’s never too late. Yes, time is valuable in investing, but starting now is infinitely better than starting tomorrow. Even if you’re starting at 40 or 50, you can still build significant wealth through consistent saving and smart choices.

The truth is, personal finance is more personal than it is finance. Your situation is unique, your goals are unique, and your path forward is unique. What matters is that you’re taking it seriously, learning, and making conscious choices about your money. That’s everything. You’ve got this.