Like many families we need a bit of help organizing our finances to make sure we are in the best financial health, based on our own personal situations. I’ve put together some tips that will help you and possibly some areas where you can find money within your budget and spending habits to save and maybe even invest for your future.
- Savings, we all try but many are not able to save even 5% of our annual salary each year. Having an automatic savings that is forced is a great way. I know you may have heard this before but it’s important you pay yourself before you pay anyone else. By having an automatic savings deduction from your payroll or from your checking account that goes directly into a saving account is key. If you are not doing this, try it. Even if it’s a small amount it will add up over time. Having a nest egg for emergencies is critical, set your goal for one -two months of reserves. What I mean by this is add up all your monthly liabilities, times two and this should be your immediate goal to save and have on hand for an emergency or life changing event.
- Analyzing your 401K, you should be watching your 401K for performance and make sure
- Insurance Policies are another great way to invest and can be added to your investment
- Budget is another thing you need to analyze. Many
don’t even have one, so first it’s important to establish a budget. If this is
you then please take some notes. Having a plan is critical to financial
stability. Having no plan can be the reason you never have money and live from
pay check to pay check. Many banks like BofA, Wells Fargo and others have spending reports you can run now that reflect your spending habits, use these reports to help you
see where you can cut back your spending. This will help you free up money you
didn’t think you had. You can also go through your bank statements to track
your spending if reports are not available at your bank. Understanding where
your money is going is the first step to controlling your budget.
- Mortgage Analysis, it's important to look at the financing on your home and any other
- Start getting your documents in order for tax time. Remember to save your last paycheck stub for 2017, it will come in handy if you want to start your tax preparation early.
ACMC Loan Consultant