A Life-Changing Opportunity: Four Simple Steps To Manage Your Finances
Surely, there’s no easy way of managing your finances. Expenses, debts, and savings are just a few among many other things that you need to think of when you manage your finances. Are you in trouble with your finances? Do you have any issue about it? Or are you stress handling it? If you’re having headaches with your finances and feel hopeless, just read on my friend.
True, it’s a pain in the head to have issues involving finances, but don’t worry because here I will give you some steps that you can follow on how to organize your finances well.
1. List Down Your Assets and Liabilities
To organize your finances, the very first step that you need to do is make a list of everything that you have, whether it’s an asset or liability. Write down all your assets. What are these? Well, these are the things that have value like your savings and checking accounts, vehicles, home equity, IRA’s, and properties that are under your own.
You also need to write down your liabilities. Is it important? Of course, it is. So, write down everything that you need to pay. In short, your debts just like your mortgage, personal and car loans, your total credit balances.
It should always be a balance. You need to see the money coming into you and where do you spend it.
2. Create a Financial Goal You Want To Achieve
Make a financial goal that you want to achieve in the future. Whether it’s big or small, it doesn’t matter. A few examples of these goals are some properties that you want to own, your early retirement plan, travels you want to have, and future investments.
Aside from the things that you want to acquire, you should also include in your career and family goals. Write down if you plan to change your job or anything that you want to do with your career. Having your own family should also be in consideration, like what age you want to settle down and the number of children you want to have.
Divide your goals into short-term and long-term. This way, you’ll be motivated to do everything in your power to achieve the goals you set for yourself. But, don’t be too hard. It’s not a race.
3. Eliminate Your Debts
Debts are like rust that corrodes a metal, it slowly eats you up and eventually breaks you. It’s one of the problems that most adults have. Clearing off your debts should be part of your top priorities. Just imagine living without thinking of any debts, isn’t that wonderful? Well, I guess everyone wants that. By now, it would be great if have at least thought of ways to eliminate your debts one by one. The sooner, the better.
Now, if you have cleared them all the next challenge that you need to conquer is how to stay out of it. For sure it wouldn’t be easy and takes a lot of effort. Here are a few things that you can do to stay away from debts. One, leave your credit cards at home, if not, try to cut your credit card off. Second, have an emergency fund that you can use so you won’t be tempted to use your credit card. Lastly, avoid purchasing unnecessary things you don’t need.
4. Be Open For Different Advice
If you feel like you have done everything I have mentioned above and overcome the challenges, then the next thing you need to do is exploring. Try to explore possible ways where you can possibly improve your life like investing or having your own business. Well, I guess most of us want to want to be wealthy or at least live nicely. We all want that and having an investment or business would be a great idea.
Entering the business and investment world isn’t easy. We’re all aware of that. Reaching this point, you’ll need to hear advice from different people. Opinion/advice can be sought among family, relatives, and friends. They are the one who knows us better and it’s free!
You can also ask for advice from a financial advisor/mentor. They obtain essential knowledge and experience to guide you with your plans on investment or business. But, if you have time, attending classes would also be good. Here, you will learn everything you need. From the very basic up to complicated ones.
Just remind yourself to keep your mind open. Different people have different opinions. What you think might work for you, does not for them.
Organizing your finances is indeed scary, however, it scarier if you don’t have any plans about it at all. Having organized finances helps you have a secure future.
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.