Managing your financial health is one of the best things you can do for yourself for both short- and long-term prosperity. However, staying financially fit is often easier said than done. To help you along the way, consider these seven tips—
Before you try to create a budget, start a retirement plan, or open an investment account, the first thing that you should do is define your goals. Goals can range in scope and might include things like:
The more specific your goals, the better. Try creating SMART goals if you’re feeling really ambitious!
The next thing that you should do is take stock of your assets, which includes any property you own (i.e. car and house), money in your bank account, and any investments that you have. Do you know your current net worth? What is your monthly income?
One of the most important—and most challenging—things that you need to do when on the journey to financial fitness is to get real about your debts. In addition to any credit card debt you have, what other debts are you facing? These might include student loan payments, car payments, mortgage payments, etc.
Once you’ve defined your goals and taken a good hard look at your income and liabilities, now you can start to set a budget. Your budget should first address the non-negotiable expenditures you face each month, like rent and groceries. Then, set aside as much of your income as you can afford to save—the goal is 10-20 percent of your income. Finally, leftover money can go to the things that you want, but don’t necessarily need.
Have you been saving your money in your bank’s savings account, or are you investing your money into a tax-advantaged account? If you’re saving for retirement—which you should be—then a retirement savings account is strongly recommended. Talk to a financial professional to learn more about the benefits of investing.
Knowing your credit score is an important benchmark that can help you to make smart credit decisions and help you to understand how well-positioned you may be when seeking a loan. If you’re struggling with a low credit score, focus on paying off any outstanding debts ASAP.
A full financial plan is more than just a budget—it includes a plan related to insurance, retirement, private wealth strategies, and more. At Harvest Wealth Partners our financial professionals can help you to pursue your financial goals. Reach out to us today by phone or online to get started.
Harvest Wealth Partners is committed to helping our clients work towards a successful future. We believe in your potential to understand the financial options that can lead you to your goals. Call us today to partner with our team. We look forward to continuing our mission for years to come.
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