Truth: A good splash again and again is one of the great joys of life. Whether it’s a shiny new pair of shoes, your favorite artisan coffee drink, or the technological gadget of the moment, we each deserve to be treated with us now and in the future.
Sometimes splitting probably won’t hit your long-term savings goals, but if you can spend yourself extra regularly, it can cut off what you can keep for the future. It’s worthwhile to give your finances a checkup every time and then see if it makes sense to reduce your costs in your specific area. This does not mean giving up your avocado toast (or whatever your avocado toast is equivalent to). This means thinking about these things in your budget, keeping an eye on your long-term goals. These questions can help you identify and celebrate your savings – and narrow down areas where there are opportunities for improvement.
1) Can I comfortably afford regular rent or mortgage, bills, and food?
If you extend each pay-check to cover regular expenses, it’s worth a deep dive to find ways to reduce your expenses in other areas.
2) Am I saving the most through my company’s 401 (k) matching benefits?
3) Am I setting aside money to target my larger goals (e.g. home, car, college)?
It’s hard to think about saving more when you have other financial priorities to compete for your attention. But keep in mind that the amount of money you add to an investment account can go far beyond your expectations – your invested assets can benefit compoundly over time.
4) Do I have an emergency fund that can cover at least 3 months of living expenses?
An emergency fund is a safety net that can give you confidence and peace of mind, no matter what is happening in the world. If you don’t already have one, we can help you get one.
5) Am I automatically paying for subscriptions that I don’t use?
Money can disappear from your account every month for an online game you don’t play, a magazine you don’t read, or a box-of-the-month club whose boxes are sitting unfamiliar somewhere in your home. Doing some subscription housekeeping can save you more money than other money goals.
6) Do I think enough before buying?
Some items seem like a great idea when you order them, but when they deliver it to your doorstep, you’ve already reached them. One of our favorite tips: Keep shopping in an online cart for a few days so you know exactly what you’re buying.
7) Do I spend money from FOMO – the fear of losing new trends or gadgets that everyone is talking about?
Sometimes when we read about camping day after day to get a new phone or smart watch, it can create the illusion that we need to have it in our lives because it is great and exclusive. Take the time to make sure you’re making big purchases for the right reason, and don’t just stick with Joneses.
8) Does my unplanned purchase fit my budget?
It’s always a good idea to make room in your budget for some spontaneous spending every month. Life wouldn’t be so much fun if you didn’t say double-mocha extra whip iced coffee every time. As long as you take the time to think about your recreational expenses as opposed to your long-term goals, you are looking for your financial well-being এবং and it can create a world of diversity!
Finding a handle on your spending and savings can help you set up for long-term success. Whatever your savings goals, we can help you plan for them.
All investments are at risk, including the potential loss of money you invest.
“Sa important questions successful savers ask regularly”,