Thought of the Day: May 9, 2018 – Financial Goals
What do your financial goals look like? Any smart person, in my opinion, is looking to make more money today than they did the day before.
For a business owner and employees this can be a challenge but with all the advancement in technology, millions of people are doing it.
Does the statement, “Most people only have enough money in the bank to survive 60-90 days” resonate with you? I hope you are not one of these people and if you are that’s ok.
After 60-90 days with the same or lower-income many people turn to credit.
There is more money going out than coming in. No matter what the situation, the bank wants its mortgage payment. The utility company wants its payment for services. Car companies wants their payment for the car you leases or financed. The credit cards need to be paid in full or you will incur an interest penalty. You need gas for the car and most of all we need to eat and feed our families.
Since the economic down turn, many people have less than 60 day’s income in the bank. I worked for a major bank and every day, for 6 years, I would see the sad truth bank account told.
I am telling you to learn about money and make better decisions with it. Don’t waist it on useless material items that will have no value in a few years.
In my 20’s I heard, “Between 9-5pm you make a living but between you 5-9pm you make a life”.
To understand your finances you have to look at your financial picture. Then you have to set financial goals based on what you want. Don’t just try someone else with your money. You and I have to be in control of it.
First, I recommend gathering all your monthly statements showing where your expenses are. Get your pay stub and see how the money is coming in.
I like the old fashion way of writing down numbers. It impacts you when you can see where the money is going. Add up the numbers in your expense column. Also count late payment charges, bank fees and interest payments.
This gives you a snap shot of where you in real time.
You may be so far behind that you need to sit with a financial planner or a debt consolidator. But before you do this I have some advice to help you get back on track.
I have used this in my life and it has worked for me.
The first thing is to only have a savings and checking account. Use them both for what they are designed to do. Do not use your bank card. Only use my credit card, but please note I do not carry a monthly balance and have no additional interest payments, so this works for me.
You can chose to use cash or debit only but do not use all 3 or a combination of 2.
Use each paycheque you get wisely to get out of debt. You should try to save a small percentage of your paycheck for yourself, even if it’s $10!
Started by understanding when what bills needed to be paid and the date. I believe your goal should be to pay off the higher interest stuff first and then the lower stuff.
Every pay cheque I would only pay the bills that need to be paid in that “2 week period”. I always make bi-weekly payment on my credit card, as this is my only source of money.
When the next pay cheque came, I pay what bills need to be paid in that period of time. Then I put a big chunk of money on my credit card.
Make payments on credit cards and control your spending habits. Once you pay off a credit card, cut it up. Better yet cut up all but one.
Let’s say you have a car payment of $600 per month maybe consider selling your car for a less expensive one and have no payment or lower monthly payments. Maybe you need to cut the cable at home and put the extra money on your bills.
If you have a business I would recommend keeping your personal and business expenses separate. Again talk to an accountant or a financial planner and game plan.
I believe the ultimate financial goal for everyone is to have a safe and conformable retirement where you have enough money in the bank. But this will not happen if you continue to be financial irresponsible.
Founder and CEO, Discover Your Life Today
Maveen has built his career in Banking, Insurance, Home and Automobile Sales. Providing exceptional customer service is his passion. Writing is a way to share his knowledge and help change the lives of million of people. Like the Facebook Page to support him.