A common attribute that most financially secure individuals share is spending time working on their personal finances. If you are ready to invest in your financial future, use the following checklist to solve the problems most important to your financial situation. security.
1. Set goals for yourself. Set financial goals for what you would like to accomplish with your money. This can include buying a home, landscaping, special vacations, a comfortable retirement, or helping children with school fees.
2. Identify your net worth. Calculate the value of your assets minus debts to understand your net worth. Monitor progress towards your goals on an annual basis.
3. Create a budget. Develop a spending plan well below your income that saves you at least 15% of your gross income. If your spending isn’t saving enough money, look for creative ways to tighten your belt.
4. Maintain an emergency fund. Create and maintain an emergency fund of at least four months of spending. If your source of income is unpredictable, increase that amount to six months of spending.
5. Pay yourself first. Set up an automatic savings and investing plan to withdraw money from your checking account to build your emergency fund, save for a new home, or invest for retirement. Set that money aside before you’re tempted to spend it on non-essentials.
6. Manage your debt. Do not charge …
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