Tina McManus' Blog
Saving for a down payment, getting your debt eliminated, or wanting to pay for a car in cash; these are all worthwhile financial goals. Although you may think these are hefty expectations that are unattainable, there are ways to achieve them with planning. Creating financial health is achievable with a willingness to see money for what it is: a tool. When you learn how to manage and direct your money, you will be able to put together plans toward the things you want to accomplish.
Evaluate, Eliminate, and Create to Win Financially
Looking at your current income and living expenses can give you an idea of what it will take for you to carve out a path to your destination. You may find your income needs to grow to gain ground. There are a plethora of ways to increase your income. You may need to get a second, or third, job. Develop one of your hobbies into a side business. Sell some of your unused stuff. Think of what services people are looking for and what they will pay to have these done for them and fill that gap. Maybe your path to increasing your income is to go to school for more education. Many professions pay more for added certifications or degrees. Make sure the cost of the additional education will bring enough increase to your future income to be worth your time and the expense.
A Little Bit of Planning Goes a Long Way
In addition to increasing your income, you will want to look at the possibility of decreasing your expenses. Write out a budget, look to see what is a fixed expense and a variable expense. Ask the tough questions. Are the payments a necessity or convenience? The things that are not necessarily adding value to your goals, can you do without them? You will have to change the way you approach your lifestyle. Think about making your coffee at home instead of grabbing it on the go - pack that afternoon snack along with your lunch. Make a weekly menu, then a complete shopping list, and take one trip to the grocery store instead of running in on your way home from work when you are hungry. This change will take some time management skills. Prepping your food for the week ahead during the time you would typically choose to do other things, takes discipline. Keep your goals in mind when tempted to order that pizza and rent that movie.
This week write down two financial goals and how you can achieve them. Your mortgage broker can give you an idea of where you need to be to qualify for a loan, so get some free advice to help you shape your goals.