Wednesday, August 10, 2016

3 things you MUST do today when it comes to your money


#1 - Create a budget.  
You need to know where your money is going each and every month.  If you don't have a budget you will start to feel like your money is just disappearing and you have no control over it.  I went through a period a few years ago where I didn't have a budget and I was always broke by payday.  Once I started keeping a regular budget I was able to start saving and always knew where my money had gone or where it was going.  I was never late on a credit card payment, a car payment or rent.  I knew how to make my money work for me and it felt really good.  

#2 - Make sure you are putting money away into an emergency fund or a "rainy day" fund.
Emergencies to happen and you don't want to have to rely on a credit card or feel stressed every single time one happens.  They are inevitable and they will happen and usually when you are the most broke (or so it seems).  So do yourself a favor and start putting money aside from your paycheck just for emergencies.  If you're single or make less than $20K a year then start with $500 in a savings account.  If you are married and make more than $20K then start with $1000.  Once you have paid off your debt then you should work on having anywhere from 3-6 months worth of expenses set aside for future emergencies.  This sounds crazy but with the world as volatile as it is 3-6 months of expenses can go pretty quickly so make sure you are ready in case you lose your job unexpectedly or something comes up and you need to deal with it.  And remember that an emergency fund is strictly for emergencies.  Try not to dip into it for things that are needs or things that you forgot to budget for.  

#3 - Invest in yourself and make sure you have a 401K or IRA set up. 
I realize that not everyone works (haha, like me!) but it is important to set aside money for your future.  If this is something that you don't know how to do then talk to someone who does.  You can find financial planners at your local banks and credit unions or ask family members if they know anyone who can assist them.  If you need someone, you can always head over to Dave Ramsey's website and see if you can find someone through him.  Remember that you want to find someone you can trust and some one who is looking out for your best interest and not their own.  If they want to put you into something that sounds risky or if you don't know what they're talking about make sure you do your own research so that you can be on your game.  It's your future and your retirement and you're financial future! 


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