Make the Time to Prioritize Your Finances

Life seems to be moving faster and faster each year.  The year is almost over and it seems like it went by in just a blink. If you feel as though you’re doing more and more just to keep up, you’re not alone. 41% of U.S. adults say they lack the time necessary to do things they need or want to do.

One of those things is tackling your finances and planning your future. With so many different activities and problems competing for your attention, it’s easy to let financial planning slide. And for most people, it’s not something they want to do, but it is something they need to do.

Here are five simple actions that give you more control of your personal finances:

1. Set a goal for the next year. It might be to pay off a credit card or to save for the deposit on a house. As long as it is a reasonable and achievable goal, write it down. Once you have that down, think about what you’d like to achieve financially in the next two to five years.
2. Create a financial calendar. Note all the regular payments that have to be made during the year – insurance renewals, taxes, car license, and any other similar payments.
3. Go digital. If you’re not doing online banking, get started. Then you can log in anywhere, anytime, even on your phone. You can check your progress towards your goal, monitor the flow of income, and keep tabs on your spending.
4. List all your sources of income. If you have any sources besides your regular salary, make a note of them and how much you make from each one. If you are a freelancer, work out an average monthly income. Once you can predict your monthly income, budgeting becomes easier.
5. Create a budget and stick to it. A budget is the only way to ultimately take control of your finances. Solvency is a very simple equation: income must be greater than outgo. So you have to spend less than you earn.  It’s the only way you will make progress towards your financial goals.

These five steps need not take long. Spending an hour one weekend could be just what you need to place yourself on a more solid financial footing.

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC