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Don’t worry, there is time to fix your financial problems


It’s July, half the year has already passed and if you haven’t achieved all of your financial goals, don’t worry. There is plenty of time to straighten out your problems and get back on track with your financial goals with a few simple strategies.
 
What are some of the common goals that are usually missed?
The three biggest goals that are missed are: Sticking to a budget, paying down debt or achieving savings goals like retirement or emergency savings.
 
How can someone get back on track if they are struggling to achieve any goals?
It starts with having a sound and usable budget and if that is a problem then they have to find a budget method that works for them.  There are several different methods from a very simple one like the 50, 20, 30 or a category based budget with specific percentages for 11 to 15 budget categories.
 
Are there any options besides budgeting to manage your money?
One that works for some people is to just have a weekly spending plan that focus only on discretionary spending. It works because you start each week with a set amount of money and when it is gone, you have to stop spending. The caveat is that you to save enough to pay all your other expenses.
 
What is someone is struggling with debt reduction?
First, put the cards physically away so there is no temptation to run up additional debt. Second focus all extra cash towards paying off a single debt and pay minimum on the rest. Once that debt is paid start applying that payment to another debt and keep going until it is all paid.
 
What if you are struggling with student loan debt?
Student loans can be overwhelming especially if you haven’t landed the higher paying job you were expecting. Federal student loans have more options for payment reduction or deferred payments. Private student loans don’t usually offer those options but might offer a lower payment and longer term. This probably also means you need to make sure to budget less for housing and transportation to find the extra money until your income increases.
 
Where should people look to find extra money to save?
Consider a moratorium on spending on fun activities, find free activities like concerts a parks, and put all that money into savings – if you eat lunch out, pack a lunch for 3 months and put that money in savings…just find activities that you can freeze for 90 days to get a jump start on savings and to develop a savings behavior.
 
What advice do you have for someone who is significantly behind on their goals?
If someone is really behind, it is probably a good idea to reset goals to levels that are more attainable for the remainder of the year. We are all motivated when we have goals that seem achievable. It might even be helpful to set 90 day goals as smaller goals are sometimes more motivating.
 


Posted: 7/13/2017 with 0 comments

Categories: Budgeting, Financial, Money Matters, Planning, Saving, Spending



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