Skip to main content

3 Steps to Help Get You Back On Track Financially


Imagine yourself feeling more secure and comfortable in the years to come when it comes to your finances. Making the right changes to your spending has the power make that happen. You can change the trajectory of your financial journey, and you make the change starting now.

It's that time of year again: time to step back, reflect, and reassess where you are - to take in the bigger picture - so you can make smart decisions about how to move forward in the year to come. And, as you review and reset in general, remember to also take stock of your financial picture.

Here are three steps to help put you on course financially:

1. Update your financial plan. If you don't have one yet, create one - a good financial adviser can help. The simple exercise of creating a comprehensive financial plan will give you a clear sense of your financial situation. It will also give you an idea of how decisions you made (or didn't make) throughout the year have affected your bottom line. Armed with this information, you'll be in a stronger position to make adjustments in the year to come.

2. Make double payments on your credit cards (or mortgage) for four months. You may have to sacrifice small luxuries to do it, but you'll make a big dent in your debt. It will feel amazing.

Need help figuring out how to free up some cash to make the extra payments? Try a "no spend" month. For 30-days, spend ONLY on necessities. Not only will you save a lot of money during this period, you'll gain the perspective you need to re-evaluate old spending habits and consider lower- and no-cost alternatives.

3. Ask yourself: Are there aspects of your life you could or should downsize? As you look back on the previous year, you may identify ways to "right size" your expenses. For some of us, this could mean making a big change, such as finally moving to a smaller home (with a smaller mortgage). Or it could be smaller changes to your lifestyle, like changes to your lifestyle, like purchasing a smaller car or cutting back on overall entertainment expenses. Imagine yourself feeling more secure and comfortable in the years to come when tit comes to your finances. Making the right changes to your spending has the power to make that happen. You can change the trajectory of your financial journey, and you can make the change starting now.

Comments

Post a Comment

Popular posts from this blog

How To Build Savings

It only takes one financial emergency to convince you of the importance of savings. It's recommended that everyone aim to save 3- to 6-months' worth of expenses, which might seem like an impossible target, but every achievement begins with setting a goal and taking the first steps toward reaching it. Why Save? Life is full of surprises - an accident, injury, illness, home repair, legal issue or even a fun opportunity such as an unexpected vacation, festival or concert are all good reasons to build up savings. With no money saved, your options are limited to earning the money or borrowing it, which usually means paying interest. Learning how to build a savings account makes you self-sufficient. You can stand on your own without relying on anyone else to bail you out. Smart Small Saving gets easier and more enjoyable the more you do it. At first, you might feel deprived if you have to trim expenses, but this feeling quickly subsides when you see your account balance rising...
Post a Comment
Read more

5 Ways Higher Interest Rates Could Impact You

The Federal Reserve has raised its target interest rate after five years of record lows. This means you may be at risk of paying more interest on your mortgage, private student loans and car note if you're looking to buy. Here's a roundup of what this means for you. 1. You could see more return on your savings. Let's start with the good news. Your savings account, money market and Certificates of Deposit could start increasing at a higher interest rate. More money in your savings account is great news! But keep in mind that you won't necessarily see this effect immediately, interest will accrue visibility and compound over time. 2. If you plan on buying a car, your payments could be costly. If you're looking to buy or lease a new car, make sure you pay close attention to your interest rate. The higher your interest, the more expensive your car note will be. This is because when you finance a car, you're borrowing from the dealership or loan vendor. Esse...
Post a Comment
Read more

Earnest Offers A New Way To Save On Your Student Loans

It's so frustrating: You're financially responsible, but you still can't get approved for student loan refinancing. A company called Earnest could change that. It's easy to look at the state of student debt in the United States and get thoroughly bummed out. In 2012, 71 percent of new four-year college grads had student debt, with an average debt of $29,400, according to The Institute For College Access & Success. That's a big chunk of student loan debt. To you, that debt may represent the years of work it will take you to pay it off. But to entrepreneurs like Louis Beryl, it represents an enormous opportunity to help graduates like you find a way to save on your student loans. Beryl is the cofounder of Earnest, a student loan refinancing lender that hopes to reward financially responsible graduates with flexible terms and lower interest rates (APRs - with auto pay - are between 2.55 and 6.03 percent). A different approach to underwriting In the p...
Post a Comment
Read more