Smart Financial Moves

Smart Financial Moves

Do you consistently have month left over at the end of your money? Basic financial acumen is rarely taught in school. The over-arching goal seems to be on how to earn money – not on how to manage it. Follow these basic recommendations from the financial planning experts to get your financial house in order.

Smart Financial Moves

Planning is the first step. Create a monthly budget. Make a list of your monthly fixed expenses including rent or mortgage payment, utilities, car or student loan payments, insurance and communications charges. Subtract this sum from your monthly take home pay. The balance is the amount you have remaining for discretionary spending.  The first priority for discretionary spending should be a long term and short term savings account. A minimum of ten percent of your take home pay should be earmarked for savings. This is known as paying yourself first. Split your savings sum between two savings accounts. One should be for short term savings and the other for long term savings.

Savings Account Financial

The short term savings account is designed for auto and home repairs.  You can make an additional savings account earmarked for vacations or Christmas. It’s easier to save small sums every month than come up with a large amount of money at one time. This is the first step in avoiding debt and living within your means. Take advantage of the awesome deals offered by Groupon coupons and save big bucks on replacement tires through Tirebuyer.com. Any coupons, discounts or sales that you can identify will always come in handy when making home and auto repairs.

Finally, be mindful of your discretionary spending. That daily designer coffee and lunches with coworkers can mount up to nearly $3,000 annually.  Check out the sales for clothing and gifts.  Instead of chasing every fashion trend, considering investing in quality basics and jazzing up your wardrobe with fashionable accessories such as scarves and fun jewelry. Bottom line, you should think twice before spending. Best of luck on keeping your financial house in order.