Almost every person dreams of a time when they can look at their financials situation and deem the entire scope of what they’re looking at as being more than just average, but rather completely and totally in order, from top to bottom.
Let’s say they are making decent money and can afford their expenses, with just a little bit of money left after all is said and done to put aside into a savings account. That, at first glance, would be the epitome of having your money mattering exactly as you’d see fit.
But you still need to certain that to truly have your finances in order, you’re paying close attention other elements that would suggest your money is working for you and you’re not living in some sort of false sense of reality when you talk about finances.
For instance, you may have a few dollars set aside each month to save but have you looked at your retirement plan lately? As nice as it is to start saving money and to be able to have a savings account, you can’t overlook planning for the future, which happens quite a bit if you’re able to save money consistently. That isn’t to suggest you can’t save money and put it all toward retirement, but if you’re completely ignoring your golden years, you’re asking for years and years of working well into your 60s.
You also can’t ignore debt, more specifically if you’re making any sort of dent in it. It’s one thing to pay your bills on time and consistently (which is key for your credit score not to take a nose dive) but what about actually making progress. If you’re not noticing debt getting lower as far as an overall number, you can’t underestimate the notion that you’re simply not going to get ahead or have anything paid off any time soon.
You should implement the plan of starting at your lowest amounts and then getting them paid off, leaving the higher balances for later. This allows you to see progress and not get discouraged.
Of course, you can’t overlook your job and if someday you lost it. The general thinking is you should have six months of salary saved in the event your regular paycheck goes away.
As much as we want to believe our money situation is perfectly fine, it might not be as iron clad as we believe, and with that, you should take stock and start making necessary changes to ensure your money is, in fact, on the right track.
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