How to manage your finance

The COVID-19 pandemic caused long-lasting changes to the U.S. economy and how people manage their money. Scores of workers left their jobs in what was dubbed the "Great Resignation" while many others embraced a permanent remote or hybrid work schedule. Meanwhile, some families bought new houses as home purchases and prices in suburban areas soared. Others transferred their children to private schools or began homeschooling in response to virus outbreaks.

All that change means now might be the right time to reevaluate your money situation. This is especially important for those who have struggled in recent years and needed to rely on temporary relief measures like stimulus payments or paused student loan payments to sustain their budgets.

Spring also seems like the perfect time to reassess your budget as Tax Day nears. But money experts say any time is a good time to review your money management plan. "It's never too late, and it's never too early," says Racquel Oden, head of network expansion for JPMorgan Chase.

Creating a budget is only one part of how to manage money, and if you start there, you'll miss critical information. Here are seven steps to take to manage your money properly:

Understand your current financial situation.

Set personal priorities and finance goals.

Create and stick to a budget.

Establish an emergency fund.

Save for retirement.

Pay off debt.

Schedule regular progress reports.

Understand Your Current Financial Situation

Before you can start managing your money better, you need to take stock of your current situation. "You have to know where your money is going," says Karen Heider, senior wealth advisor with Concenture Wealth Management in Houston, Texas.

The most basic step to understanding your current financial situation is to record all your regular monthly income and expenses. If that sounds overwhelming, Heider says you can take advantage of numerous apps that can automate the process. Mint, PocketGuard and Simplifi by Quicken are a few of the free or low-cost apps available that can sync to financial accounts and make it easy to categorize spending.