When was the last time you took a moment to review or create your financial checklist?
Think about it: you likely compile lists for every other area of your life (i.e. groceries, weekend activities, wedding plans, travel arrangements, etc.) …time to focus on your finances for a change!
This week, challenge yourself to find an hour of your time to review the checklist below. Brew a cup of your favorite coffee, curl up on your couch, and get to work! *Bonus points if you review this list with a partner, spouse, or accountability buddy!
1. Get Organized
Dedicate a folder or binder to organizing your finances. File all bills, receipts, contracts, financial statements, legal documents, and debt statements.
2. Establish a Budget
Build a budget or use a budgeting app to take control of your spending. Identify money-wasting behaviors and address areas of opportunity. Most importantly – STICK to it!
3. Build Your Credit
You are entitled to a free credit report every twelve months from each of the three main credit bureaus: Experian, Equifax, and TransUnion. Log on to one of the credit bureaus to find out where you stand.
4. Calculate Your Net Worth
Your net worth is your total financial value after assessing the value of everything you OWN (your assets), subtracted by everything you OWE (your liabilities).
5. Pay All Minimums
Make sure you’re paying the minimum each month on all of your financial obligations (credit card payments, student debts, personal loans, etc.). Automate these payments to help you remember!
6. Prioritize Your Retirement
If your employer offers you a retirement plan, contribute at least enough to benefit from their match. You can also consider opening a Roth or Traditional IRA, as well.
7. Build an Emergency Fund
Aim to save between 3-6 months of your income to use in the case of an emergency. If the worst were to happen, you would be protected and therefore, wouldn’t have to take on new debt (or worse!).
8. Begin Investing
The most important ingredient for an investment is time. Contact a professional to learn your options, set your goals, and get started TODAY!
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