How To Set Yourself Up For Success
Here are some quick and easy ways on how you can set yourself up for financial success!
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Set up automatic deductions from checking to savings. If you're contributing to a 401(k), you know how easy it is to adjust to an automatic deduction from your paycheck. So why not do the same for your other savings goals? Whether you're saving for a house, a child’s college, or building a vacation fund, automatic deductions from checking to savings will add up without you having to think too much about it.
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Amp up your retirement savings. It’s great to stash away money in your retirement account every month, but are you saving enough? If you’re over 25 and saving less than 10 percent of your salary, you should consider increasing the percentage. Expecting a bonus? Send the bulk of it to savings.
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Create a calendar. Don't risk incurring a penalty by missing a due date. Put all important financial dates on your calendar such as estimated taxes, property taxes and RMDs. Set up reminders a few days in advance of the due date.
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Put bills on auto pay. Avoid late fees by putting your recurring bills—mortgage payments, utilities, insurance premiums, phone and internet—on automatic. Just be sure to check in periodically to make sure the proper amounts are being deducted.
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Build a cash cushion. Don't let a financial emergency derail you. As a buffer, you ideally want to have enough cash handy to cover three to six months' essential expenses. Sound impossible? Look back at number 1. Figure out how much you can afford to put toward your emergency fund each month and have that amount automatically deposited in a savings account especially earmarked for that purpose. When you reach your goal, you can put these savings toward something else.
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Invest like a pro—without the hassle. If you don’t have the time or expertise to monitor and rebalance your investments, consider using an automatic investment advisory service. Let the pros help build and manage your portfolio in keeping with your personal goals—minus the hassle.
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Make financial date-night a regular event. A little moral support can go a long way. Set up a regular time to discuss your financial goals and realities with your spouse, partner or a trusted friend to share tips and help each other stay on track. And be sure to celebrate your successes!
Blog credits to www.schwab.com
