With the economy the way it is right now, it very important to stay on track financially. No one knows what tomorrow is going to bring. You want a financial plan to follow to best stay in control of your finances.
There are several things you should be doing in order to stay on track financially:
Pay your bills on time. Pay your bills in full and on time. Late payments can affect your credit histories. They often times cost you more money in late fees too!
Save a minimum of 5% of your income. After all of your expenses, if you are able to save 5% of your income you are directly on target towards a healthy future.
Having an emergency fund that equals a minimum of 3 months’ worth of expenses. I have actually heard some financial experts recommend 6 months to a years worth of expenses with the state of the current economy. If an emergency arises (sickness, layoffs, etc), you will be fully prepared. Not having an emergency fund can kick your entire financial plan off track. I have seen people end up losing their houses and in bankruptcy over it.
Plan for large purchases. If you plan to purchase expensive items ahead of time, you won’t be hit as hard when it comes down to making the purchase. Save monthly until you have the full amount for the item you need. You also are usually able to get a better deal, because you can look for deals or sales on the item too!
Stick to your budget. If you stick to your budget, all your finances will fall into place. Budget your important items first and cut back on the things you do not need.
Regularly review your credit. Review your credit at least once a year to check for accuracy. For us, my husband and father-in-law have the same name so we have to do this yearly. We luck out that they have just as good credit as us. However, I still don’t want their stuff on our credit report. Discrepancies can hinder your credit score and report overall. This also allows you to see if somebody stole your identity. Even if your kids are under 18, you should be running a credit report on them also!
Examine all of your statements for errors. Go through your statements each month to verify you have made all the stated purchases on it and that the amounts are correct.
Continue to financially educate yourself. Take advantage of all of the financial seminars, classes and events that are offered in your area. Many banks hold numerous seminars all year round to assist you in your financial needs.
Your financial security is very important to every facet in your life. Hopefully this list will help you to take steps towards a healthy financial feature.