When it comes to your fiscal health, things may seem overwhelming. There are so many different responsibilities and goals you have to keep straight to be truly on the right track. If you are struggling with this, just like with other overwhelming aspects and times in life, it is sometimes best to pause and make a list. You can often check in on your progress more effectively when you have everything in a visual format. Check out some items that should be on your list.
1. Evaluate your budget.
Almost as important as creating a budget, evaluating your budget can help you assess whether your money is still going where you want and in the amounts you intended. It also gives you the chance to make any changes based on your dynamic needs and goals. It’s a good idea to continue tracking your spending and adjusting any categories on your budget that are consistently lower or higher than you had estimated. This can help make sure you are on track for monthly and annual goals.
2. Contribute to retirement funds.
One of the ways to make sure you are preparing for your long-term future is calculating how much money you will need in retirement. Then you can focus on a collaboration of employer-sponsored and individual retirement accounts to save toward that goal while still meeting other goals. If possible, it can be a good idea to talk with your company’s human resources department and adjust your retirement account contributions so you can qualify for the maximum match available.
Set up a no-cost consultation with the Investment & Retirement Center located at First Financial Federal Credit Union to discuss your savings and retirement goals – contact us at 866.750.0100 or stop in to see us!*
3. Double down on debt.
Everything from your credit card debt to student loan payments can hang over your head and cause stress. It’s a good idea to create a plan to automate your debt repayments so you avoid late payments and don’t have the choice of paying them or not. It may be stressful, but it’s important to come to peace with your debt and feel comfortable with your debt-repayment plan. This can even include taking on freelance, part-time or odd jobs to make additional payments if necessary.
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4. Work on your credit score.
Your credit score affects many financial decisions in your life from what interest rate you pay on a mortgage to whether you can rent an apartment. It’s important to regularly check your credit report, look for any mistakes, and work on some ways to improve your score. These include paying your bills on time, opening credit card accounts only as needed, paying off debts and keeping revolving credit low. You can check your credit scores every month on Credit.com to track your progress.
5. Update your insurance details.
From home, auto, and health all the way to life insurance, it’s a good idea to make sure your personal information is up to date and that you are getting the best deals possible. Some strategies you can employ include simply paying your premiums as due, asking your provider about reducing your rates, and making sure you have the coverage you need even as your life circumstances change.
6. Boost your emergency fund.
You may have heard this one before but it is a good idea to stash of three to nine months’ worth of expenses in an easily accessible place in case of a sudden rough patch. The exact amount you decide to tuck away to cover the emergencies will vary depending on things like job security, living expenses and streams of income.
It is important not only to be financially responsible, but also to make financial goals and work toward reaching them. Writing your goals and responsibilities down can help you be more accountable and make things easier to grasp.
*Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free 800-369-2862. Non-deposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.
Original article source courtesy of AJ Smith of USA Today.