Personal Finance Check Up Time

Now that we are ½ way through 2018, it is time to have a personal finance check-in.  It’s been 6 months since we kicked off the new year with financial fresh start goals. Are you where you wanted to be at this time of year?  Are there still some goals on which you still want to work?  Any time of year is great to perform an assessment of your finances and to make adjustments as necessary to keep you on check. Here are some quick check-ins that you can perform:

1. Check your spending habits.  Pull up your bank account transactions for the last couple of months and walk through the transactions.  Where is the bulk of your spending?  Are there purchases that could have been avoided?  Did you have some impulse spending that could have been controlled if you had waited a day to purchase the item instead buying it at that moment? If you have a budget where you track your spending, were there areas in which you were constantly going over the budget you had set?  Getting control of impulse spending can be the first major step in getting a handle on your finances.  To help control this type of spending, try making a shopping list before you head to the store.  While shopping, make a conscious effort to stick to that list.  Another tactic that you can try is to make a 24-hour rule on impulse buys.  This rule means that you give yourself a 24-hour waiting period before you buy an item that is not on your shopping list.  If after 24 hours you still feel the need to purchase the item AND YOU HAVE THE CASH (not credit) to do so, then go back and purchase the item.  Often, you will conclude that the item is not a necessity.
2. Perform a bill audit.  Pull out your cable, cell phone, satellite bills, etc. and comb through all of the charges.  Is the monthly rate what you it should be?  Look at all the additional charges on the bill.  Do they make sense?  Are there convenience fees being charged and there is no explanation of the charges?  Make notes of any charges of which are you are not familiar.  Call or have an online chat session with a customer services agent regarding any charges that you are not familiar or that you would like additional detail.  If you do not agree with the charge indicated, ask to have it removed or credited to your balance.  Also ask if you can have your monthly rate reduced.  A lot of companies will lower your rate to keep you on as a customer.  It costs a company more to attract new customers than it does to keep its current ones so many are willing to make adjustments or offer free incentives to keep you as a customer.
3. Fatten up your emergency fund or savings account.  Have you ever heard the saying, ‘A little goes a long way’?  This is true when you are saving.  The first step to saving is getting started.  And once you have started – keep adding to it!  No amount is too small.  If all you can afford is $5 a week – do it!  In a year – $5 a week will add up to $260 a year and that is before you have earned any interest!  As your budget allows and as you control your spending, you can add to this amount to grow it even faster.  If you have the option to have the money drafted out of your paycheck to go straight into savings – this is a definite plus.  This way the savings will happen automatically, and you do not have to think about saving.
4. BUDGET Health Check.  Reassess your budget this month and make sure that all of the categories are up to date.  Knowing where you money is going and pointing your extra cash into the right categories is vital to being financially successful.  If you do not have a budget go HERE to download an easy to use budget template to get you started. 

Being in control of your finances puts your mind and your money at ease.  Learning how to budget helps you reach your goals and to make wise decisions.  If you want to learn more about being financially savvy and being in charge of your money, sign up HERE for the financial fresh start challenge!  It’s an 8 week email series that takes you step by step into how to take charge of your money!