Nine Steps You Can Take To Protect Your Financial Future Right Now
When it comes to your financial future, it is easy to become overwhelmed and not be sure of where to start. Planning for the future is a scary prospect for many... but it doesn’t have to be!
Taking these nine steps will set you on the right track to protecting your financial future.
1. Start Tracking Your Expenses
One of the best first steps to take is to be well aware of what you are already spending. Where does your money go each month? Do you know?
Tracking your income and noting where each penny goes will help you to evaluate what funds you need each month. Getting a solid grip on your monthly budget will allow you to understand how much is needed before it is due.
2. Avoid Impulse Buying
Along with budgeting to track expenses, keeping track of your funds more closely will also help you to avoid the dreaded “impulse buy.” Planning requires thinking ahead. That may sound obvious, but focusing on what goals you have for your future means taking action in the present.
Don’t make large purchases without planning ahead. Research big buys such as a car, a house, or other major purchases thoroughly. Being cautious about spending will prevent you from wasting money unnecessarily.
If it isn’t in the budget, a planned purchase, or a scheduled buy, you should consider not spending the money. Saving yourself from impulse buys will prepare you for a smoother financial future.
3. Limit Credit Card Spending
Try not to rely on credit cards, especially if you carry a balance month-to-month. Cards often have high interest rates and carrying such a large debt will lower your credit scores.
Budgeting and planning will help you to focus your money on your actual needs and not just wants, and also help you cut down on impulse buying.
4. Save For Emergencies
Having a safety net is a wise choice for any budget. No matter your age, planning a successful future means planning for the unexpected, too.
Try to focus on putting some funds away each month in the event of an emergency.
5. Pay Off Debts
Review where you have debts. Check the interest rates on each major debt and decide what makes the best sense to eliminate the earliest.
When planning your budget, focus more funds on the higher interest rates, and pay down such debts more quickly, to save yourself money in the long run. Once a debt is paid off, put that payment towards another debt. This is known as the “snowball method.”
6. Contribute to a Retirement Plan
One of the easiest investments to make can be to an employer-offered retirement plan. These plans will often invest for you, making smart choices for you depending on your age and estimated time until retirement.
In addition to planning for your future for you, such plans may also include employer-offered matches. In other words, you can often get additional funds for your future from your current employer just by investing in the program yourself.
7. Technology’s Helping Hand
For those seeking assistance in organizing and tracking all of these options, consider the helping hand of technology. Software programs can help you to stay on top of your spending habits, as well as tracking results of any investments.
8. Check Your Credit Report
In addition to being aware of your spending, knowing where you stand in the eyes of creditors will help you understand your standing in the financial world. Your credit score is what financial institutions use to gauge how much you can borrow.
Be aware of your current score and review your score on a regular basis. Track what forms the score and mitigate any discrepancies in a timely fashion.
9. Seek The Advice of The Pros
At the end of the day, the business of finances can be a confusing world for anyone. Trusting the professionals can be a good way to unload the burden from yourself, and truly be sure your financial future is successful.
The team at Gretchen Rehm Financial can help you to better understand not only where you stand now, but also the financial future you face. Book an appointment today, to get started!
