Do you remember your first piggy bank? Finances seemed so much simpler back then! Now the thought of money can trigger so many emotions: stress, envy, depression, relief, excitement.
Regardless of how you feel about money, it is an important part of our daily lives. It is also a part of life that requires planning. Let’s look at some ways you can plan and set goals when it comes to your finances.
Know your budget. Do you know your monthly income and expenses? Budgets can take a lot of different forms: paper, electronic, or app-based. The important thing is to know what you bring in each month, what you are spending each month and where you can make changes.
Plan to get out of debt. Whether you have a lot of debt or very little, you can always find room for improvement. This is where you can glance over your budget to see what expenses you can cut or reduce and then start to pay extra on your debts.
Set aside money for retirement. The thought of retirement may seem so far in the future or it may be closer than you’re prepared for. Whether it is an individual plan or one through your employer, make sure you are putting aside something each month toward your retirement.
Don’t forget about that emergency fund! A short-term emergency fund is important for those sudden emergencies, such as a job change, medical bills, car repairs, or home repairs.
Don’t forget about life insurance. You may not think you need life insurance or you may think your employer-based life insurance is enough, but make sure you and your spouse are adequately covered with life insurance. You work hard to provide for your family each day; don’t neglect this important part of providing for them after your death.