A financial to-do list is perfect for any person whose finances are all wound up and in a mess. Such a list adds a perspective on how you can get your financial situation in order. Even, if you are financially safe, a financial to-do list is wonderful to further improve your financial situation and achieve any monetary goals you have.
A good financial to-do includes elements that cover all your bases. So what are these elements you can’t miss out on?
Start Budgeting
Budgeting should be high on your to-do list, especially if it is not a habit you have adopted. Budgeting involves tracking your expenses. Today, it is quite easy with the many smartphone apps that can help you out. You must also account for your income.
Map out a budget which you should follow through the month. Cut down on all unnecessary expenses; for example, when you find yourself going to the ice-cream shop too often.
A budget helps account your income and increase savings. Starting doing it!
Create and Boost an Emergency Fund
An emergency fund is highly important. It will be your buffer money, your safety net. If you lose your job, get into an accident or have a family emergency, it comes in handy. At the end of the month, you must dedicate part of your income to building up your savings account. If you are able to create at least a 3 month cushion, you are better than 75% of the people slowly increasing it one month at a time.
Pay Debts on Time
This is where creating a budget becomes useful. Ensure you put money aside to pay your monthly credit card bills and loan debts. Paying your debts off is an important financial to-do. If you don’t keep a handle on your debts, they will get difficult to manage and you may even have a collection agency coming after you (not a good thing!).
Checkup of Credit Report
Every quarter, you should go through your credit report. A credit report is like a health check-up on your financial situation. It lets you know the outstanding amount of debt you are under and if you are paying it off regularly. Also, check for errors and any unaccounted spending which you can’t remember.
A Credit Score comes along with the report. You should aim to push your credit score above 700.
Submit Taxes
Ensure you are taking care of your taxes. Careful attention to your taxes ensures that you get returns and tax breaks.If you are self employed, get into the habit of paying taxes monthly.
Life Dreams
Life is for living and enjoying. Everyone wishes to achieve some dreams. It could be travelling around the world, buying a Rolls-Royce or purchasing a new home. There is no point in working so hard to be financially stable and not experiencing what life has to offer. A life dream can become a long-term financial to-do on your list.
This kind of financial to-do list will remind you of the things to keep in mind when writing your own financial to-do list.
