Taking control of your financial future can be a daunting task. After all, with our busy schedules and daily responsibilities, it’s easy for financial planning to fall to the bottom of the to-do list. However, keeping tabs on your personal finance is an important part of securing your future, and it doesn’t have to be complicated or time-consuming.
The journey of a thousand miles begins with a single step, as they say. With just a little financial planning you can be well on your way to achieving your financial goals.
Track Your Income, Spending, and Personal Financial Goals
The first step toward personal finance management is taking stock of your income and your expenses. Assess what you’re currently earning (after taxes) each month, including wages and side hustles, as well as what you’re spending. Include regularly scheduled costs (like insurance and subscriptions) and variable expenses (like electricity and gas). Review your bank and credit card statements to make sure you’ve counted everything, then add your income and expense numbers to a spreadsheet. If you have a Gmail account, there is a personal office suite included with spreadsheets, documents, storage, etc.
This spreadsheet, or ledger, is your personal monthly financial snapshot for budgeting and savings monitoring.
Once you know where you stand financially, you can start to think about your financial goals. Do you want to buy a home, put away money for college, save for retirement, or buy a car? Identifying your financial goals early allows you to more effectively save money for the future.
Find Opportunities to Optimize Your Personal Finances
If you’re spending more money than you have coming in or you’re unable to save, it’s time to get serious about budget planning. Start by prioritizing all of your expenses. Determine which expenses are essential and which ones can be eliminated or reduced. If you’re struggling with paying off debt, consider options such as debt consolidation. If you’re paying a high monthly home or auto payment, look into the benefits of refinancing to determine whether that’s a good option for you.
Plan Your Budget Ahead of Time
Another important aspect of smart financial planning is to prepare for the unexpected with a three-month emergency fund. The amount of money in the fund can fluctuate slightly, but it should be able to cover three months of expenses in case of emergency.
Once you’ve figured out where to make cuts and have your emergency fund in place, you can start saving toward your “big picture” financial goals.
Enjoy the Benefits of Refinancing with Gravity Lending
Sound money management can help reduce stress, fear, and anxiety, allowing you to enjoy the fruits of your hard work and strive towards your financial goals. At Gravity Lending, we can help you consolidate your debt and access the most affordable financing options so you can save money and more effectively plan your budget.
Contact us today to get started on lower auto refinance rates!