How Resilient is Your Financial Future – Part 1

Many of us have concerns considering our financial futures; especially with the general climate of the world today – with food, gas, and utilities increasing in cost. We all have general questions regarding emergency funds, how to curb spending, create budgets, plus a plethora of other financially related questions. Being prepared is of the utmost importance. Below are just a few tips to help you become more financially resilient.

Talk to your Family/Spouse/Significant Other:
The people in your household can help you plan how to become more financially resilient. You will want to ensure that you are all on the same page, as this will lead to a more cohesive and stress-free conversation. Remember that discussions about money can take time; everyone involved needs to feel comfortable with the decisions that are made.

Debt Investigation:
It is important to understand what debt you have. If possible, it is a good idea to have it consolidated into one low-interest repayment plan. Setting aside money in your budget for debt repayment may be a great way to ensure that your debt is getting paid down every month. It is also a good idea to learn about different forms of debt, and how they may affect you in the long run.

Create an Emergency Fund:
It is generally thought that your household should have enough emergency funds to last for three months. Remember that this find is best to accrue over time, by setting aside a bit each month. You will want to assess how much you can afford to set aside; this amount may vary from month to month.

Set a Budget:
Setting a budget may sound like a no-brainer, however, it is often more complicated. You will want to start by tracking how much income there is for your household. You will then want to track what needs to be paid each month, what you want to save, entertainment funds, etc. Any money coming in or going out will need to be tracked to establish an accurate budget.

Curb Your Spending:
The most important tip of all is to curb your spending. This can be as simple as cutting back on unnecessary spending (do you need to buy a coffee every day or can you make coffee at home?). Other ways to curb spending may include: cutting out the expensive cable package, eating out less, or even watching a movie at home instead of going to the theater. Anything that isn’t an absolute necessity can be cut back on, it’s up to you to decide what’s best for you and your family.

Keep in mind that none of these things will happen overnight. These are all things to build toward to help you prepare for your future, and what comes next. There are many ways to help to ensure your financial resiliency. Our team at Perfect Balance Accounting Services can help you figure out what works best for you, your family, and your future. Contact one of our knowledgeable accountants to discuss accounting, tax preparation, payroll, financial planning, and other accounting services. We are located in the Greater Racine area and work with individuals and businesses throughout Southeastern Wisconsin, including Kenosha, Pleasant Prairie, Oak Creek, Milwaukee, and beyond. Let’s get started on securing your financial future with Perfect Balance Accounting Services!