Uncertain financial times creates the need to be better at planning and managing your money. It is important to undertake decisive financial actions that are based on a sound strategy. Following is a six step approach to use to make these important decisions.
Being financially prepared for any eventuality does require that you have some type of budget or spending plan, otherwise you will likely not reach your goals or be able to be financially prepared for any type of situation. The 50 30 20 budget is helpful when you want to have a less detailed budget and not track several categories.
If you need to improve your financial situation one of the first places to start is develop a plan for how you want to spend your money. There are several tools and types of budgets but sometimes it is best to think of your monthly net income as pie, you have a limited amount of money and will have to divide it each month to “feed” all of your saving and expense needs. There are several different ways to divide your income ‘’pie” and for this example, we are going to go with a minimalist approach that focuses on driving more to savings or debt reduction.
One of the best moves to make when the economic situation becomes uncertain is to get your personal finances in order. And the only way to make that happen is to determine where your money is going and then develop a plan for spending that is optimal for your current situation. That’s where the budget comes in to play, it’s the roadmap to how you want your month to go financially. There are a few key steps to building a good budget.
As the state and the nation continue to grapple with the effects of COVID-19 there is a growing impact on the economy and the financial well-being of individuals. There are a few questions that can help you decide what your course of action should be during these challenging economic times.
As your financial situation changes, it is important to remember that your issues will require planning followed by a series of detailed actions. Often times before getting into detailed planning it is helpful to start with a bigger picture strategy. This can provide the proper focus to select the proper tactical objectives and actions to consider. The SIMPLE approach is one that can give you a great place to start and provide a framework for next steps.
During the first quarter of the year is when most people receive raises, bonuses or tax refunds. Leading many people to question of what they should do with this windfall of money. How you use this money has a dramatic impact on your financial future.
Disagreements about money can be an underlying issue for relationship difficulties. Too often couples don’t talk about financial matters until months or years into a serious relationship. They also never establish short or long term goals or be honest with each other regarding the annoying money habits of the other.