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The key to financial success is SIMPLE

Financial success is not always easily found. There are several ways to start down the wrong path that can create difficult financial burdens to overcome.  It doesn’t have to be that way though. There is a SIMPLE way to better financial outcomes.
How can financial success be so simple?
It really starts with 6 basic financial concepts that all of us can easily do no matter what our situation.  Following these tips might not guarantee success, but they certain make it much easier to reach our financial goals.
What is the first of the 6?
Save first, what I mean by that is have your savings come out before you start your budgeting. Use 401k and automatic deductions to your emergency fund and then use the rest for your daily budget.
Why is impulse buying so destructive for financial wellness?
Usually it creates a significant financial burden to overcome and can be the start of financial distress. Some might think that people only make small impulse buys but many people make impulse decisions when it comes to buying expensive home items, cars, even houses.
Your budgeting tip is “Make it to Monday”, what does that mean?
Instead of budgeting for the entire month, just budget for each week, start fresh on Monday and work to make it to the next Monday.  Usually weekends are our biggest time of the week for expenditures, so if we know what we have left to spend, we are more likely to stick to that spending amount.
Why is paying on time so important to financial success?
Paying your loans and other bills on time are important for two reasons.  First, you avoid paying extra fees for being late. This can add up to $100 or more to your monthly expenses.  Secondly, the foundation of a good credit score is paying your loans on time, paying late can lower your score and cost you more in terms of the interest rate you will have to pay.
Where all should we look for ways to save?
Finding places where we can save are really more plentiful than most people think. A few small savings include using coupons or taken advantage of frequent shopper discounts.  Thinking a little bigger, savings can come from lowering premium TV subscriptions or smart phone plans. And if you really want to look for big savings then refinancing your home loan or buying less expensive cars can generate significant savings.
What is the final concept in the SIMPLE plan?
Eliminate costly habits is the final concept.  This covers the entire spectrum from daily premium coffee consumption to other destructive financial behaviors such as trading cars constantly, binge shopping or poor health habits like smoking.
S – save first
I – impulse buys should be avoided
M – make it to Monday
P – pay everything on time
L – look for ways to save
E – eliminate costly habits

Posted: 1/22/2016 with 0 comments

Categories: Financial, Money Matters, Planning

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