We know that planning for big purchases like a house, a car, maybe even a boat or other sizable item you’ve got your eye on is a big deal and can dramatically affect your bank account. Even if none of these are on your immediate horizon, it’s never a bad time to get your finances in order. We’ve scoured the internet to find the most useful tips from financial experts, and discovered some savvy recommendations. Since this is the time of year that many of us like to set new goals, we thought you might appreciate some ideas for getting started.
Ask Why
A Forbes financial planner suggested asking yourself why money is important to you. At first this seemed like a silly idea until we realized that understanding our motivations is a key component to success. Once you understand the why then you can align your financial goals much more easily with your personal values. It makes sense!
Don’t Procrastinate
We heard this one time and time again. There’s no better time to start planning for your future than right now. The longer you wait the riskier the investments you’re likely to consider. Saving now allows you to be more practical.
Emergency Fund
If you don’t already have one, set up an emergency fund that consists of three to six months of your average income in a separate savings account. This reserve is a life-saver if, for example, your A/C goes out or your roof caves in. Something you won’t have to worry about with a Stone Creek Custom Homes-built house!
Live a Little
This one can be a hard one, but many financial advisors recommend living on less than you earn. They suggest saving up to 10% of your monthly salary and as little as 3%. If you automatically deposit it into a separate account you might not even miss it.
No More Debt
Eliminate your credit card debt. This recommendation can seem daunting, but almost every financial planner will tell you it’s a necessity. Just take a look at the interest you spend every year. When you do the math and see how much you could be saving instead of giving away, it can be eye-opening. Start paying an extra 10 – 20% on your credit card bills to help whittle them down faster and then commit to cutting the cards (and the cords).
Do Your Research
When considering investment opportunities, make sure not to rely solely on instincts and personal recommendations. Taking the time to research from legitimate sources can help you identify solid investments and potential lemons.
If you’re ready to plan your future in a beautiful new home, give us a call at 210-494-5400. To be added to our private email list to receive the newsletter, please sign up here.