Do you dream of being financially stable but fear you’ll never get there? What a wonderful feeling it would be not to have to worry about paying your bills because you know you’ll have the funds. You’re saving money for future goals, emergencies and are debt-free or close to it. While it may seem unattainable, follow these five ways to make it finally happen this year and you might just find yourself buying that new home among Winnipeg real estate or wherever your heart desires.
Financial Security Tips for 2019
Create a Budget
A Gallup poll showed that only about a third of Americans maintain a household budget. If you fall under the majority, it’s time to create a budget, which means taking a good look at all your income and how much you’re spending. Make a list of all your bills, including groceries, transportation, car payments, credit card payments, student loans, insurance, your mortgage and rent, and so on. Then total up all your earnings. Subtract your expenses from your income and you’ll find out if you’re living beyond your means.
If you’re overspending, and most of us are, you’ll need to prioritize expenses and see where you can cut back. Even if you aren’t, it can be a good way to help you save more. Review your spending habits and look for areas that can be eliminated or cut back such as an unused gym membership, that daily cup of Starbucks coffee, frequent dining out or even cable television. The more you cut, the more your financial situation will improve.
Write Down Your Goals
Nearly as important as having a budget and trimming expenses is writing down your goals, which makes it easier to create an actionable plan, stay disciplined and motivated. What do you want to do? Do you hope to buy a house, pay off your credit card debt and/or student loans, or travel the world? When you save for something rather than simply saving to save, it will help you focus more.
Get Credit Card Debt Under Control
If your credit card debt is out of control, get a handle on it by ranking each card from highest to lowest interest rates then work on paying them off starting with the highest interest rates first, while still paying at least the minimum payments on all the others. Living below your means is key to long-term financial success. If you regularly spend all your money, or more money than you make, you can’t expect your savings to grow or become financially stable.
Set Up Automatic Transfers to Savings Accounts
It’s much easier to save when you set up automatic transfers to fund savings accounts. After a while you won’t even notice it coming out of your checks, and by paying yourself first you won’t be limited to saving whatever happens to be left, which often is much or anything at all. When you set up automatic savings and then just forget about it for a while, it will start to add up quickly and you’ll be more motivated to stick with it.
So how about it? What will YOU be doing in 2019 to make your family more financially secure? Comment below and let me know!