The Gregorian calendar has officially reset! We all know what that means. Gyms will be swarming with those who vouched to enter the new year by working out every day. It’s arguably the most common resolution but there’s another one people often overlook, and that’s financial planning. The fresh start of a year serves as the perfect time to set your financial goals. Do you need to pay off debt? Are you saving up for a substantial purchase? Have you been wanting to invest in stocks? The fact of the matter is, in order to meet your economic aim, you must have money put aside. Luckily, there are a few basic tips that will aid you in contriving your financial plan.
Organize Your Fixed Expenses
It might sound self-explanatory, but did you know approximately 70% of Americans don’t regularly follow a budget? This means most people are unaware of exactly how much they’re spending and what they’re spending it on. They simply hope for the best when it comes time to pay the bills. However, it’s been reported those who do routinely follow a budget are able to meet their financial goals or pay off debt much quicker.
Begin by compiling your monthly expenses. Find out precisely how much money you need to set aside for mortgage/rent, electricity, car, gas, groceries, phone, etc. There are countless apps available for budgeting. If you prefer to handwrite, pull out an empty notebook and dedicate it to your fixed expenses. After budgeting the fixed expenses, allocate the remaining money wisely. Figure out how much you want to go towards nonessentials, if any at all. Remember, the end game should be to reach your ultimate financial objective.
Don’t Eat Out
Another fun fact coming your way. The average American household spends between $2,500 to $3,000 a year on dining and takeout. It might feel like a small purchase in the moment, but it clearly adds up. Remind yourself of this large sum the next time you’re contemplating paying for an overpriced burger and fry.
Start by replacing the small things that can rapidly add up. Instead of ordering a $7 coffee every morning from Starbucks, make a good ole cup of joe at home. Meal prep every Sunday night so that you’re not tempted to leave work and run by Chipotle. It might be difficult at first but you’ll swiftly become accustomed to it.
Meet With a Financial Professional
Financial professionals are proficient in all areas of financial planning and can help you approach your goals from different perspectives. They assist with assessing your current financial state and future goals. If you don’t know where to begin or feel you need skilled insight then you might consider meeting with one.
Guaranty Bank & Trust is an excellent resource located right here in the North Dallas Corridor. They offer a range of services including fiduciary services, investment management, foundation management, wealth and estate planning, and retirement planning. If any of these services can assist you with your financial goals then check out their website to book a consultation!