Learn how to successfully manage your money and avoid credit problems. This guide will give you money management techniques that can put you in control of your money and help you to plan for a successful financial future. Making the most of your money can be tough, but without a budget, it is tougher.
Managing Debt
You can’t achieve financial freedom without budgeting. Why? Because people are more in control when they can account for their money. You can’t run a business successfully without a business plan, nor can you successfully run your household without a budget.
BankAtlantic knows that in the real world we have to prioritize where our money goes. The 7 Quick Financial Fundamentals can help you achieve a more secure financial future for yourself and your family.
Start this process by writing down your fixed monthly expenses like rent, car payments, and insurance. Then make a list of your flexible expenses like groceries, utilities, gasoline, and medical expenses. Finally, list discretionary expenses such as clothes, entertainment, etc. Make sure you don’t leave anything out; don’t forget your morning cup of coffee or your newspaper! The key is to include everything you spend money on. Look back over your check stubs or bank statements to see where you’ve been spending your money.
Borrowing
List your current loans or the loans that you are thinking about taking out. Calculate the cost of the expected loan payments before you borrow and compare it to your income and outstanding obligations.
Income
The first step of creating your budget is to list all sources of monthly income, including gifts, bonuses, tax refunds, cost of living increases, allowances, etc.
TIP: Pay yourself first. Set up a savings account and transfer 5% of your income to the account and try to forget about it afterwards. The extra money will add up in no time and can come in handy when you need it! (more…)
While most Americans think they are on the track to a long and comfortable retirement, many will learn at retirement that they’re not as close as they’d like to be. Many Americans haven’t saved enough for more than a year or two of retirement. A 2010 survey by the Employee Benefit Research Institute found that 42% of workers 45 and older have total savings and investments worth less than $25,000.[1]
