Are you prepared to set financials goals at this moment?
You probably don’t even know where to begin. It’s okay…take a breath and don’t get overwhelmed. If managing money and understanding finances is not your strength, I will guide you through some easy principles and steps to get you where you need to be.
Setting financial goals and having the aspirations to achieve certain milestones in life is no walk in the park. It may seem like a daunting task, especially if you’ve never had a budget.
Before we move forward with improving your financial life, there are 3 financial principles that you need to adopt and implement right away. Think of it as having a new perspective on your personal finances.
Live below your means
There is no possible way for you to build up a savings account, to purchase a home, or to make large investments if you are over spending and living pay check to pay check. You’ve got to live below your means! A simple best practice is to save between 10%-15% of your net income (after taxes and deductions). If your direct deposit/check is $1,500, make sure to save at least 10% ($150) and place that money in a money market savings account. Live your life with the difference. If you find it difficult to do, you need to manage your money more effectively, reduce your costs, and create a budget (check out Lets Create Your Budget)!
Be prepared for the hurdles in life
I hate to say this, but life will always present trials and tribulations and our money needs to serve us as tool to overcome these steep falls. The reality is that it is possible to lose your job, to get sick, to be in a car accident, to get divorced and to experience so many events that may financially cripple you. If you are not living below your means and if you are not saving appropriately, you may find yourself between a rock and a hard spot. Use your cash to prepare yourself for those hurdles in life!
Invest in your future
As for the 3rd principle, you need to invest in your future. You may be in your twenties and retirement is not even a word in your vocabulary. While you may be right that retirement is about 40 years away, you are actually in the best position and best timing to begin a foundation for your future self!
Not beginning to take advantage of employer pensions, 401K benefits, or ROTH accounts is a mistake you will regret…I guarantee it. Don’t live pay check to pay check and don’t live day by day with your cash. Think about tomorrow, next week, next year, next 5 and 10+ years with your money. Make the right decisions now so that your money can work for you for a lifetime!
To make these 3 financial principles work, you’ve got to be consistent, hold you self accountable, be responsible with your cash and have the hunger and desire to finally take ownership of your financial life.
Are you ready to be serious about improving your personal finances? If the answer is yes, Lets Create Your Budget!