Welcome to Money Sense – a new monthly column in The Bellevue Times! Don’t leave your financial security to chance. Here are some tips to start 2022 on the track to financial freedom!
1) Stay Organized
Start becoming financially fit by getting organized. By implementing a financial organization system like alphabetical file folders, or filing systems, you’ll be prepared for more than just tax season. Getting organized lends itself to smarter spending and better investment choices for long-term planning. Consulting with a financial planner can help map out your long term goals and help implement a plan to reach those goals.
2) Financial Windfall
A financial windfall is an extra or unexpected sum of money $1000 or more. If you find yourself receiving a significant amount of money like tax refunds, inheritance or even stimulus aid, put those funds temporarily aside and create a plan. Using some of those funds to pay down and eliminate debt will increase your monthly working cash flow. You should also set aside a portion in a separate account or savings in case of emergencies.
3) Invest in your future
Make a list of your financial goals and estimate how much each will cost. Want to go on a fabulous vacation? Pay off “past due” bills? Get a degree? Buy a house? Save for a child’s education? Write it all down. Make sure you don’t forget about something that might seem too obvious to include, like your retirement. If you don’t have a retirement account, consider setting one up. If your company has a 401(k) or other retirement savings plan, contribute at least enough to get the company match if a match is available. Then, separate your goals into categories — short, medium and long-term — and set up savings and investment accounts for each one. It’s easy to think you’re saving enough money, but keeping separate accounts allows you to keep track of exactly how close you are to achieving each goal.
4) Track Spending
Keep track of your monthly income and expenses to stifle debt and help you save. By creating a budget, you’ll be able to assess your spending and put money into savings. Stay organized with basic budgeting apps or simple spreadsheets and check your budget regularly to form a healthy habit. It’s a worthwhile discipline that will help you identify your purchasing patterns and set realistic goals for the future.
5) Resolve Debt
It’s not difficult to rack up a lot of debt, but it can be difficult to mitigate it. Consider consolidating balances to one monthly payment either with a low or zero % interest credit card or using the equity in your home for a low cost loan option.
6) Have a Plan
Saving is a sign of peak financial fitness, and if 2020 taught us anything, it’s to expect the unexpected. Having a solid savings plan in place will help you endure whatever life throws at you. It’s never too late to put money away for the future. Saving at least ten percent of your income for retirement, keeping around three months’ salary in a savings account, and having automatic savings plans are all recommended ways to save.
From everyday transactions to major purchasing decisions, we have the tips and tools you need to succeed. Feel free to contact the team at West Gate Bank in Bellevue, or you can reach out to me directly at 402.291.0889 or via email at sspencer@westgate.bank. We’d be happy to discuss your future and help guide you towards success. Start achieving your goals, save for what’s next, and put your debt to rest. As a full-service bank, West Gate Bank is large enough to serve all of your banking needs, yet small enough to provide the outstanding personal service that only a community bank can deliver. At West Gate Bank, our interest is you!
