Imagine you’ve set an end-of-the-year goal: You’ve decided to save enough to buy a new refrigerator. You were able to save regularly for a few months, but now you find yourself struggling not to spend those funds. Meanwhile, your savings is no longer growing at the rate you had hoped! So how do you get yourself back on-track with your financial planning? Ask yourself these three questions:
- Am I Spending Too Much?: Unnecessary spending is one of the most common mistakes people make with their finances. Track your spending for a month. If you notice you’re spending a lot on “splurges,” you might be jeopardizing your financial security! Challenge yourself to follow a more frugal budget.
- Am I in Debt?: If you carry a balance on your credit card from month to month, you now owe interest on top of your original debt. This is another common area where people lose money they could otherwise be putting toward a financial goal! Stop spending on credit for now. Make monthly payments, above the minimum, to free up funds you can now save.
- Am I Making Enough Money?: Financial security comes from regular saving. If you notice you’re struggling to make room in your budget each month to save, you may want to add a second career to your plate. Whether you want to contribute to an emergency fund or buy a home sooner than later, a second career can greatly accelerate your growth.
Financial growth requires a combination of setting realistic goals and maximizing your income in order to save as much as possible each month. It takes time and organization to create a plan that works for you; don’t be afraid to keep tweaking!
To learn about other ways to improve your financial life, including embarking on a fulfilling second career, visit Syncis at https://www.syncis.com/blog/.