It’s probably been seven months since you gave serious thought to your goals for the year. The good news is you still have half a year left to catch up.
1. Take a snapshot of your current financial situation.First, list all of your assets and liabilities.
- Next, detail your cash flows (what’s coming in and what’s going out).
- Compare goals from earlier in the year to see where you stand financially to date.
2. Review your budget. A lot can change in half a year. If you’ve been promoted, had a child or become a single-income household, be sure to update your budget.Determine what expenses demand the most money.
- Identify areas where you can realistically cut back.
- Develop a strategy for spending and saving, and stick to it.
- FinanceWorks, available through Busey ebank, puts money management at your fingertips—and your financial goals within reach.
3. Re-striking a balance. Save? Pay down debt? Where do you start first?
- Striking a balance of both saving and paying down debt is crucial to achieving your financial goals
- In many cases, the scale will be tipped in favor of one over the other, but it’s important to have a dual focus to not get behind in one area
- Review how much you’re putting away now and how much debt you’re paying down
- Experts recommend saving 10-15% of your gross annual income. The amount needed is higher (up to 20-30%) as you get older
- Review your debt and interest
- Remember, you never get back the interest you pay over the life of a loan, so that means more money out of your pocket.
- Consider living expenses. If you have extra cash after expenses, consider bumping up your deferrals to employer retirement accounts, such as a 401(k).
4. Tackle spending challenges. If you’ve been on a spending splurge, now is a good time to plug the drain of cash.
- First, look closely at your non-essential expenses, such as entertainment. Identify opportunities to reduce how much you spend in these areas monthly
- A monthly budget is helpful to set a defined limit for yourself.
- After you review the non-essentials, find ways to reduce monthly bills for essential expenses. For example, reduce your cable or cell phone bill.
5. Be your own CFO (or hire one).
- Like any well-run businesses, our finances require management that is attentive to detail, accountable, organized and focused on both short- and long-term goals
- Consider your assets, liabilities, incoming/outgoing cash, etc
- Give yourself an employee review. How are you doing? Would you hire yourself for another year?
- If you don’t have the time or simply want to optimize what you’re doing now, think about hiring a financial planner
- A qualified financial planner can truly act as a personal CFO and partner with you to manage your entire financial situation.
busey.com has an array of resources available to make reducing financial clutter something to look forward to—instead of something to dread.
- Financial calculators. From home financing to personal financing, review your budget with these handy tools.
- Expert Insights provides useful knowledge to a variety of topics to boost your financial literacy.
- Busey ebank. Securely manage your accounts, sign up for eStatements and take advantage of Busey Bill Payment.
At Busey, we are dedicated to providing support and resources to help you achieve your financial goals—whether this is keeping better track of your expenses, or saving for your child’s education
- We are happy to answer any questions about our financial products or services.
Visit any Busey location, call 1.800.67 | Busey or visit busey.com.