Do You Have Your Financial Goals In Order?
You’ve made up your mind to start saving for your future. It’s time to get your financial house in order. Where do you start? How do you start? There are many opinions on the internet and you must choose what works best for you because everybody’s situation is different. What worked for your friend or sister might not work for you. Here are some common sense tips for getting on track with your financial goals.
Get out of debt!! Experts say the only debt you should carry is that of a major purchase. And by major purchase, I am talking about your house and your car. Most people can’t save a large amount of money for those purchases, so I think these types of debt are necessary. Any other debt you are carrying, ie. credit card, furniture or appliances, boat, loans, etc. should be paid off as soon as possible.
Build an emergency fund. Experts say we should all have an emergency fund of 6 – 12 months of our salary. That might be a lot of money for a lot of us. At the minimum, you should work towards an emergency fund of $5,000.00 – $10,000.00.
I would try to work on both of the above ideas at the same time. Some experts disagree with this thought. My thinking is that if you start paying off debt but have nothing in savings, a car accident or medical emergency is going to get you into more debt! And if you are not paying down your other debt but saving for your emergency fund, you are paying more in interest in the long run.
So what’s your first step? Check your Buckey Budget Grade by signing up at Save by the Drip. The Buckey Budget is split into 5 categories like Debt, Essentials, Savings, etc. Your expenditures will be categorized and compared to a healthy budget to determine your grade. You will have a clearer picture on where you are over spending and where you should really cut back. Sign up at Save by the Drip. It’s free and you will be taking the first step toward improving your financial health. Join today!