With a New Year upon us, this time of year seems to offer moments of reflection for the things that have gone right and the things we wish to improve upon. As 2019 approaches, a thing to review and analyze is the state of your financial security. I recommend creating financial goals not just for the New Year but also in respect to long-term.
Ways to successfully complete this task will require discipline and an open mind for revisions as needed. One of the first things to do is to know where you are and where you desire to be. Once you know this, you are able to set a plan on how you’re about to get to your financial destination.
Budgeting is essential to the health of your financial health. A budget is a system short-term or long-term that details the income and expenses of your family. A budget teaches you how to manage your money, shows where your money is going and even illustrates your spending habits if tracked correctly.
Debt. Statistically more an 80% of America’s population have debt. Now, I will not get into what is “good” debt or “bad” debt but I will say knowing how much debt you have is imperative. You must know not only the balance of your accounts but also the interest rates associated with each account. For credit card debt, for example, your statements are for the most part supposed to detail your balance, interest rate, credit score, minimum payment amount as well as the amount of time it’ll take you to repay said balance if you only pay the minimum payment.
Saving money, start early, save often! Savings is vital to your financial picture. Having a nest egg and even just an emergency account for the unknown that life will enviably bring will relieve so much stress that may have been magnified had you had a zero-balance savings account.
Bottom line, invest in gaining the knowledge you’ll need to have the money and resources for all the planned and even unplanned events of the next 300+ days and beyond.
Happy Budgeting and Happy New Year!