1. Know where you stand
You first need to know where you currently stand before you can set financial goals- it is hard and sometimes very confronting but assessing your savings, debts, or keeping track of every part of your income and expenses, month on month, will give you a picture of your finances and can also help you plan better.
2. Set a Budget You Can Stick To
Budgeting is the most important thing you can do to be financially successful. Doesn’t matter if you have huge amounts of cash or none -creating a budget and sticking to it it will help achieve goals.
3. Pay Off Your Debt
Start by paying off debts with the highest interest rates as soon as possible to reduce the amount of unnecessary expenditure and you will be able to save or use that money elsewhere.
For example, if you have $10,000 in credit card debt and pay 19.5% interest on it, you’re paying $1,950 every year in interest alone, on top of your actual purchases.
4. Contingency or emergency Fund
Life happens to the best of us- an unexpected bill ie Covid loss of jobs or time in isolation.
If you haven’t already done so, it is important to establish an emergency fund.
Your emergency fund should hold approximately 3-6 months’ worth of savings where you only touch it in This fund gives you the peace of mind that, in case anything unexpected happens, you have 3-6 months to work something out.
Regardless of your age, you should have a rough preparation plan for retiring. Knowing you may need will help put things into perspective and give you a plan for your future.
Give us a call here at Prestige Wealth Group if you need any help.