Spring has sprung!
As the days are getting longer, and the weather a little brighter, we may find ourselves motivated to clean out the clutter at home; ditching those things that no longer serve us. This is also the perfect time to put that energy towards giving ourselves a Financial Checkup!
A few things to take a look at in order to evaluate if our current systems are up to par. Even tweaking just one of these can yield big results.
Update Your Budget:
Been awhile since you took into account that raise at work or additional side hustle income? Or perhaps you cut back on hours and are feeling the money pinch?
Research shows that those who keep a budget, or as I like to call it A GUILT-FREE SPENDING PLAN (!!) are less likely to splurge on something that will get them into trouble. The main thing here is to understand what your personal numbers are when it comes to your “Needs” (those things you just have to pay monthly) and your “Goals” (savings, retirement contributions, etc.) How much is left over becomes your “Wants”. Different methods of budgeting work for different people..just ask me—Im here to help!
Reduce Your Fixed Expenses:
Once you identify your “Needs”, it’s good to go through once in awhile to make sure you’re getting the best rate on those expenses. You can actually research competitors’ rates and negotiate some bills that might seem inflexible (cell phone, auto insurance, etc).
Check Progress on Emergency & Goal Savings:
Most experts recommend 3-6months of Expenses (“Needs”, not “Wants”) in an Emergency Fund, but you should shoot for a number that you are comfortable with in your particular situation. Ask yourself: How long will I likely be out of work if I loose my job (consider your industry)? If you were laid off during the Pandemic and have found reemployment, that’s a good indication of how many months of a cushion would be right for you. Automate Emergency Fund savings to be drafted monthly to a savings account (where you could access the money quickly and easily).
If you’re saving for anything else specific, automating savings for other goals is the way to go as well. Take this opportunity of a Financial Checkup to evaluate your current savings to see how much progress you’ve made!
Check Your Current Method for Paying off Debt:
Determine if the system you are currently using is working for you in line with your desired timelines. There are a couple different methods for paying down debt: “The Snowball Method” in which you pay off the lowest balance first, gives you that little psychological boost of getting a quicker result and can be very motivational to stay the course.
“The Avalanche Method” saves the most money overtime by paying off the highest interest rate first. If these haven’t worked for you, there are a few other methods up my sleeve. Feel free to reach out!
Unlocking Abundance 