Are your personal finances in a shambles?
Out of ideas on how you can get back on track and plan better for your financial future?
We feel you. Here are five super tips to help you with getting your finances back on track.
A Useful 5-Step Program to Get your Personal Finances Sorted
Sponsored by Polk Partners
Step 1: Set Up a budget
It can be tricky to keep track of your money particularly if you don’t have a set budget incorporated to track your spending habits better. With a budget, you can align your finances and personal aims and successfully bridge the gap more efficiently. For instance, if your entertainment expenses are taking up too much of your monthly income, it is time to curb some of your social habits and allocate more cash towards other financial categories and expenses.
Step 2: Saving More Cash
Making resolutions to save more cash is easy, however, sticking to them is easier said than done.
Begin by narrowing your focus and generating a goal for the amount of cash you’re planning on saving each month, or the total you’d like to have saved by the end of the year.
Then make small adjustments to your daily routine that could help advance your savings. Instead of ordering fast food for instance, instead, pack lunch for work every day.
Consider cancelling some of your monthly subscriptions that you’re not actively using.
Start incorporating strategies at home for saving on electricity and water bills.
Whichever adjustments you’re doing, direct the savings into a separate account where it can sit untouched.
Step 3: Consider Automated Finances
Automate your savings by setting up monthly transfers into an investment account. This is a solid method of making sure you’re not neglecting your savings.
You can also speak to your employer to electronically transfer your salary into an account of your choosing.
Try transferring a portion of your salary straight into your savings account.
Another useful way of sticking to your saving habit is by signing up for automatic account payments, that can help prevent late payment fees.
Step 4: Pay off Debt with Polk Partners
Once you’re starting to make progress, actively commit to paying off your debt. You can start with the three steps that we’ve mentioned above (budgeting, saving and automating).
Be knowledgeable about where your money goes every month and try saving a bit of extra cash to pay towards loans with high-interest rates first.
Make sure you keep some cash stashed in your emergency fund to help pay for those unforeseen expenses without having to borrow. If you have no other choice, try to opt for offerings with a single monthly payment that has low-interest rates.
Step 5: Saving towards Long-term Goals
Saving in advance for long-term goals, like retirement, your child’s college fund, or buying a home, is a smart financial move.
Even if you’re only able to put a small amount away every month, the sooner you begin, the more advantageous it will be for you since the cash can start growing via compound interest.
Depending on your goal, maybe consider opening a savings account, retirement account or certificate of deposit where you can hold the savings.
We trust this post was helpful in assisting you with setting up a budget and planning your financial future a little better.
Ready to get your personal finances sorted?