There is never a bad time to sit down and assess your financial position. It is fine to plan, make some decisions and implement them. The problem is if circumstances change. Where would the person be who took out a huge mortgage just before the Collaterized Debt Obligation crisis if he couldn’t adapt to the crash? He certainly found himself with real estate valued far lower than it was when the mortgage was agreed.
So let’s forget that resolutions are for New Year and look at some things that you should look at today, just to make sure you are on the right lines.
You need to know what your aims are in the short and medium term at least. In the short term you want to know you can meet your current commitments. In the medium term if you want to buy real estate or a new car you will need to be doing more than meeting your bills each month. It is particularly important for you to use your credit card for convenience and not see its outstanding balance building up month by month because you are overstretching yourself.
If you have debt have you got a plan to pay it off? Is it manageable? Certainly credit cards incur high interest rates and paying off the minimum each month won’t make any real impact on an outstanding balance when that interest is added.
When you consider where you are now and where you want to be you may need to change a few things. If you want to build up some cash then you may need to economise. If you set up an automatic savings plan that may squeeze the amount of money you have to spend each month. It is vital that if you do that you do not revert to your credit card for support before your paycheck appears. A Broker will advise you on where you can get secure growth. If you set up a debit that takes your monthly saving out immediately your paycheck reaches the bank your own discipline needs to keep your expenditure within the figure you have left.
While it may be years away you will get old one day and a retirement plan that is put into place while you are still relatively young is likely to be worth more in later life than one you put off.
Pocket the Change
Small amounts do add up. If you take your change out of your pocket each evening and put it in a big jar you will be surprised how quickly it mounts up to a significant sum. Don’t spend that money each time you need to fill the jar, take it along to the bank and put it on deposit.
There is plenty of advice online about personal finance; tips on ways to budget, save and economize. Every so often you should go to the search engines and read some of the articles that offer you advice. If you have time you could even read a financial book each month so you have a better understanding of money in general. You are likely to pick up other ideas by doing that, ways to both save and ways to make money through investment and part time opportunities. Don’t wait for New Year; sit down now and take a look at yourself.