Too much consumer credit is an easy way to risk your financial future. It will be inherently difficult to ensure financial stability with an excessive amount of debt or simply put, just living beyond your means.
It is extremely difficult to guarantee your financial security without financial discipline.
Budgeting requires discipline. Do you have the discipline to succeed?
By spending excessively and outside your budget, it helps the economy, but does it help your personal economy?
Creating a budget is easy but the ability to sustain this financial discipline of living on a budget in this society is hard. Ask yourself if you are strong-will enough to do this?
We have made it very easy for you and have provided a budgeting tool which you can use and review as needed.
You will notice that the first item on the budget is your saving and savings is a percentage of income. The only way to be successful is to always pay yourself first.
Before you pay your mortgage or rent, before you buy food, or pay any other bill.... pay yourself!
You are helping the economy but you cannot continue to hurt your financial future with the expectation that all will be well for retirement.
Think about this: All successful companies operate with a budget. If the largest and most successful companies need a budget, why don't you?
You are the one who goes out to work every day, you deserve to put yourself first. The recommended amount is 10 to 15 %.... you decide!
So many people are 1 to 3 paychecks away from bankruptcy.
Set a goal to save enough money to cover at least 6 months of expenses. After you have achieved your goal, start looking at converting excess cash to asset. It is important to note, that you need to be careful about hoarding too much cash. Cash never appreciate, so convert cash to asset to build wealth.
We have also provided a worksheet to help you prepare your financial statement. It is difficult to determine where you need to go unless you know where you are. By using this tool you will have a better understanding of where you are financially.
Use this as a starting point and create a goal to improve your net worth. In the event that you need a financial advisor this tool will better help you to understand your financial state and better help your advisor to help you achieve your goal.