Planning your finances now and for the future is a stressful affair, especially when carrying debt. It is a challenging task to get organized and manage your finances so you are aggressively working towards debt relief. However, one of the first and most important steps to this process is creating and sticking to a budget.
Planning Your Finances Now and for the Future
A budget is the most basic step when it comes to planning your finances now and for the future. Budgeting is critical because it shows you exactly how much money you have coming in and how it is spent. Keeping a tab on your personal finances is how you ensure you have enough money to spend on daily living expenses and save for the future. By keeping track of personal finances, you can ensure you have enough money for daily living and any future expenses that may arise.
Here are the seven steps to creating the perfect budget.
- Change Your Attitude Towards Money: Examine your attitude towards money. What works for you and what doesn’t? A budget is a discipline. Therefore it can alter the way you live. You need to prepare for this change.
- Get Organized: Looking at your entire financial picture is key. Gather your thoughts, documents, numbers, etc! It’s time you organize your personal finances.
- What’s Your Credit Score: Your credit report is your go-to place to understand your current financials.
- Set Financial Goals: Goal setting is a key part of planning your finances now and for the future. However, more importantly, you need SMART goals. That is Specific, Measurable, Attainable, Realistic and Timely. Include both short and long-term goals in your budget. Try and set both short and long-term goals to help you see where you need your budget to be now and in the future.
- Track Your Spending: You need continuous tracking of your budget. This is a tedious but crucial step to financial planning so that you know exactly what your monthly expenses are. Try tracking for a minimum of 30 days before creating your budget.
- Create Your Budget: Create a budget that shows the money coming in and out of your household. Now you will be able to see how much you need to live. This gives you a proper guideline without having to worry about settling credit card debt.
- Financial Check-Ups: Periodically check in with your budget because financial stability takes time. It is important to make sure that you are on track to achieve the financial goals that you set before creating your budget.
If you are looking for financial counseling, speak with a certified counselor at ACCC today. Call 800-769-3571.