Life is all about change. Good things or bad can affect your financial planning. Be ready. Planning for the unexpected can make seemingly disastrous events like a job layoff, a house fire, or a long-term illness far less devastating than they might otherwise be.
If you’ve never saved a penny in your life, you’re not gong to magically put aside thousands of dollars a month. So start small. It’s all about consistency. Far better to build up, than give up!
Understand your own personal psychology and avoid the triggers that will make you spend more or save less. For example, if you know you’re undisciplined, try to have money taken out automatically for saving or investing.
Often we get too complex in our planning. Result? Plans turn into burdens and are quickly abandoned. So don’t try to become an investment banker overnight. Just focus on what’s most important to you. Is it having enough money for retirement, financial security for loved ones, college? You decide and then take simple, straightforward actions.
Wish lists can be wonderful things to have – as long as you don’t use your credit card to turn every wish into immediate reality. Understand the difference between necessities, and be willing to forego what you don’t really need to stay on plan.
There’s an old expression: “If you don’t know where you’re going, any road will lead you there.” When it comes to your money, you need to have specific goals. They can be as simple as: “Put aside $500 a month for a down payment on a new home until we have $20,000,” or “Pay back credit card debt in one year with $300 a month minimum.”
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