Cultivating good financial habits is essential to achieving your goals in life. Whether you’re a first-time homebuyer, adding a second home, or working toward another major purchase, creating a plan and sticking to it will help you reach the finish line. Here are just a few tips to get you started in maintaining strong habits that will see you through any phase of your financial journey.
It sounds simple but learning to create a budget is the cornerstone of any financial plan. Add together the total of all your monthly expenses in an itemized list and use this to see where you can afford to make cuts. A few small sacrifices each month can grow into major gains toward your greater financial goals.
Know the Score
When was the last time you checked your credit score? A strong score will be necessary to secure any major loan, but to improve your rating you first must know where you stand. Many banking apps provide your credit score free of charge, and there are a number of websites that offer similar services. Get an up-to-date picture of your credit and begin taking steps to improve or maintain your score.
Cut the Card
Credit cards can be a valuable aid to help build credit, but they can also introduce temptation to overspend. Use cash for purchases whenever possible and save credit cards for manageable purchases and rare emergencies. With the high interest rates offered by most cards, that random spending spree just isn’t worth it.
Plan for the Future
Having a goal in mind for a given timeframe will help you stay accountable to your financial plan. Set goals for five, ten, or 15 years in the future and take the small steps needed to reach them. Saving with a specific […]