Want to reach your money goals? Here's a four-step process to achieve your dreams!
(BPT) - The new year is just around the corner and it’s never too early to think about your 2020 goals — and for many, this means prioritizing finances. Taking the time to focus on your goals and determine what’s important to you financially is the best way to set yourself up for success, but actually following through can be difficult. These easy financial exercises from Vanderbilt Mortgage will help you reach your goals in the new decade.
1. Outline your plan
If you don’t already have one, establish your plan. Write down short-term financial goals, such as creating a monthly budget, and long-term goals, such as paying off a debt or buying a home. Defining these goals will help as you set your budget for the next year.
2. Create a monthly budget
Gather pay statements, bills and bank statements to get started. You can write down all this information or use a budget tool. Start by calculating your monthly income, which includes not only the amount you may get from a regular paycheck, but also any money you get in government aid, child support or pensions. The next step is to look at your bills and bank statements to find out exactly what you spend in various categories of expenses such as utilities, auto, medical, personal, insurance, etc. This accurate information will empower you to take control of your spending.
3. Set a savings goal
Saving is another important aspect of financial health. Whether you’re using a general savings account, adding to an emergency fund, or setting aside funds for a new home, saving for larger financial goals helps you prepare and gives you peace of mind no matter where life takes you. If you’re new to saving, start small. Simply skipping your daily latte from the coffee shop a few times a week can add up quickly.
4. Stick to it
The statistics on how many people actually follow through and keep their New Year’s resolutions are rather bleak, but sticking with your financial goals will pay off. Stay on track by monitoring your progress each week. As you get closer to your goals, excitement will build and you’ll be motivated to keep budgeting and saving.
Vanderbilt Mortgage offers helpful online resources whether you are looking to purchase a new home or keep your current home in great shape. “Here at Vanderbilt, we want to use our years of experience to help current and future homeowners.” Said Eric Hamilton, President of Vanderbilt Mortgage, “Providing educational materials for every step of homeownership is one of the ways Vanderbilt is with customers every step of the way.”
Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), MT Lic. #1561, Licensed by PA Dept. of Banking. Sponsored ad content from Vanderbilt Mortgage and Finance, Inc.
Most people don’t have enough money saved for a rainy day. It’s important to have enough money in the bank to be able to survive a major financial downturn like a job loss. You should also be saving for your retirement. Maybe you are worried about the state of your finances and wonder how you can get in control of them. The key to getting control of your money is to live on less than you have. Here’s how.
Putting Away Something in Savings
Building an emergency fund counts as the most important financial step you can take to ensure that you are living below your means. Most financial advisors suggest that you have between three and six months' of income stored in savings in case of an emergency. Most people don’t. The problem is that if they become unemployed, they’re forced to live on credit cards or loans from family because they have no money in savings. If you have to borrow money to live, you’ll eventually have to pay it back or go bankrupt. Putting money into savings each month ensures that you never have to go into debt should a major financial blow occur.
Not Investing Too Much
It's certainly true that real estate, starting with your home, can be a sound investment. That said, you should be careful about putting too much money into real estate because doing so can make you property rich but cash poor. While it’s nice to have property, you may not have enough money in the bank should you experience a job loss or serious illness. So how much can you safely invest in your home? Here’s a rule of thumb. The average American making $61,372, assuming they have no debts, should pay no more than $2,301.45 a month if they buy a house with a conventional 30-year mortgage. This means that you would have no more than 30% to 40% of your money sunk into real estate at any given time. Following this tip will keep you from paying too much on housing.
Living Below Your Means
Living below your means ensures that you always have more money coming in than going out. People who adopt this lifestyle often vow to forego buying something new until they can pay cash for it. If they do get a raise at work, they pretend to themselves that they are still bringing in the same amount of money each month, and the extra money from their raise goes into savings or an IRA. The less of your money you spend, the more of it you can keep.
Spending less cash than you earn takes effort. It’s really a lifestyle choice and not a one-time thing. To get started, you first want to put money into savings each month. Next, be mindful of how you invest your money. Being cash poor can hurt you if tragedy strikes. Finally, do your utmost to spend less money than you have. If you follow all of these steps, it’s unlikely that you’ll ever have to worry about your finances.
Most relationship experts agree that making time for date night is important, whether it’s the early days of a blossoming romance or decades into a comfortable marriage. Spending that valuable time together doesn’t have to be expensive as long as you take the time to make it special. Plan your next date with these ideas for low-cost experiences with the one you love.
5 Ways to Step Up Date Night Without Breaking the Bank
(Family Features) Most relationship experts agree that making time for date night is important, whether it’s the early days of a blossoming romance or decades into a comfortable marriage. Spending that valuable time together doesn’t have to be expensive as long as you take the time to make it special.
Plan your next date with these ideas for low-cost experiences with the one you love:
Share time outdoors. Except in the most extreme conditions, there’s always something to do outside and most of those activities are either free or relatively inexpensive. Whether it’s taking a stroll hand-in-hand or planning a picnic at a scenic location, the exercise and fresh air can be good for your body and mind, for both you and your beloved.
Dine on a dime. Although the days of a nickel burger are long gone, there are ways to curb your spending when you eat out. For example, many restaurants offer menus with smaller portions as well as promotional nights with discounts geared toward certain audiences. Some restaurants even offer daily discounts, as high as 10 percent off your total bill for AARP members. If you are not a member, it’s simple to sign up online. Membership is just $16 a year, so it can practically pay for itself with the use of just one of the dining offers.
Simply stay in. When you’re conflicted between going out on a date or settling for a night on the couch, it’s possible to have both. Order takeout from a favorite spot and bring it to the comfort of your home for the best of both worlds. It allows you to avoid kitchen cleanup and simply commit to enjoying one another’s company without interruption.
Master the movie schedule. Prime time at the theater can be pricey, but if your calendar is flexible, you can catch a show earlier in the day for a steep discount. Some theaters also offer special discounts for ordering tickets online. An added bonus: taking in an early movie with a snack may help save money on dinner later.
Enjoy special engagements. Whether it’s a local sporting event or a musical performance by a group visiting your town, sharing a pastime that you’re passionate about is a good way to share a piece of your life and interests to help establish a deeper connection with a loved one. Conversely, if it’s a new experience for you both, it may establish a newfound bond that you can explore together over time. Don’t let ticket prices dissuade you. Take advantage of offers that may be available to you, special showings or even a ticket discount with your AARP membership.
Explore more tips and ideas to make the most of your relationships and everyday life, too, at AARPAdvantages.com.
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Managing all of life’s demands on limited funds can feel like a never-ending chore. Every family’s budget is unique, so there’s no one-size-fits-all solution to saving money. However, establishing priorities and looking for ways to make small cuts can add up.
How to Help Your Family Budget
(Family Features) Managing all of life’s demands on limited funds can feel like a never-ending chore. Every family’s budget is unique, so there’s no one-size-fits-all solution to saving money. However, establishing priorities and looking for ways to make small cuts can add up.
Many people turn to creating a personalized budget or a spending schedule to help keep track of their expenses. Planning payments on a monthly basis can sometimes be helpful when it comes to setting an appropriate family budget, anticipating short-term expenses and planning ahead for long-term payments.
However, creating a personalized budget is not always enough. Some companies also offer discount and incentive programs for particular customers, so it’s best to do some research when planning your next month’s budget and take advantage of available programs.
For example, Amazon offers a discounted Prime membership for $5.99 per month for customers receiving government assistance. This offer is already available to Electronic Benefits Transfer (EBT) cardholders and now Medicaid recipients also qualify. Members have access to a wide selection of more than 100 million items, video and music streaming services, low prices on select items and fast, convenient delivery options, which can ultimately help save both time and money.
In addition to fast, free shipping on millions of items, these benefits come at no additional cost to Prime members:
To help make your budget more manageable, take a close look at your bills, ongoing purchases and opportunities to save where possible.
Find more information to help balance your budget at amazon.com/qualify.
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Saving money – it’s one of the most challenging tasks people face month after month, year after year. However, a few simple rules and free personal finance apps can make it easier for you to stay on top of your spending and saving habits. Consider these simple steps for building up your savings and net worth.
5 Steps to Saving Money Easily
(Family Features) Saving money – it’s one of the most challenging tasks people face month after month, year after year. However, a few simple rules and free personal finance apps can make it easier for you to stay on top of your spending and saving habits.
Consider these simple steps for building up your savings and net worth:
Track Your Spending Habits
Use Peer Pressure to Your Advantage
Identify Problem Areas
Set a (Logical) Budget
Negotiate and Change Financial Providers
Saving money can be a challenge for people in all walks of life, but creating a plan can help you change the outlook of your financial life for the better. Visit statusmoney.com to learn how much you can save.
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Whether you’re trying to pay off bills, save for a dream vacation or create a nest egg for retirement, having a sound budget is often the first step toward bringing your financial goals to fruition. While budgeting is often associated with finding places to curb your spending, creating and sticking to a budget can be a fairly painless process with these guidelines that can help you build, manage and maintain a realistic budget that will set you on the path toward reaching your financial aspirations.
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