There is no dearth of financial experts and pundits on the internet who will dole out advice on financial matters. But, there are only a few of them who can actually help you take definitive action towards your only goal – a better financial life. Though improving your finances is your ultimate goal, on a short-term basis you need to take small steps everyday towards this goal which means implementing the following actions.
1. Asses your financial condition
The first thing to do is to pull out your credit report. Apply right now with Equifaxor Transunion to obtain credit report of both, you and your wife. Your credit report will help you identify errors if any in your finances. Obtaining a credit report over mail is free of charge, once in a year. Normally it takes about 10 -15 business days for the report to come to you. If the proofs do not match with what you have on your report, the agency can deny access to you. If it is ordered online, you will get access to it immediately.
2. List down your assets
Before you start revamping your finances you should know the current state of affairs. Start with your savings, emergency fund, retirement account, investments, bonds and any other type of financial investment. This listing will give you a clear view of where you stand financially.
3. Automate your emergency fund saving
This is one of the best ways of ensuring your emergency fund is replenished every month. Set up monthly transfer of a fixed amount from your primary bank account to your emergency savings account through electronic clearing.
4. Plan a budget
This action will require your entire family to sit down and brainstorm on irregular expenses. Other fixed expenses such as your debt instalments, mortgage instalments, utility bills, groceries and credit card expenses can be easily figured out. Plan your budget accordingly and stick to it religiously.
5. Track your expenses one at a time
Now, that you have your expenses figured out tracking all of your expenses together can be overwhelming. So, choose one category of your expenses and start tracking it on a daily basis for optimising it.
6. Minimise card spending
Credit cards give you the liberty of going on a spending spree. Make sure you bring your card usage to the bare minimum and only use cash set aside according to your budget for daily transactions.
7. Choose public transport wherever you can
A great way to save the environment and your money is to start taking public transport as often as possible. You could also car pool to office instead of taking your own car every day.
8. Plan for debt payment
Make an list of debts you have, secured and unsecured. Now look at what you are paying every month on these debts. Do I really require them? Look for professional help in seeing how you can make an plan to pay of the debts.
9. Inspire yourself
Inspire yourself to a better financial life by reading up on influential people who changed their fortune with strong yet simple life decisions.
10. Keep a track of your progress
To keep yourself motivated and on track it is necessary to measure your progress. Keep a constant check on the budget set aside by you at the start of the month and your current spending with the help of a simple balance sheet.
These simple yet powerful actions are enough to get you started on changing your financial life.
