Money Matters

Here are some important things you should know about your money so that you get the most out of it:

Identifying and prioritizing your financial goals is the first step towards achieving them.

Your money goals may include things like:

• Getting out of credit card debt
• Having a 6 month emergency savings account
• Saving for a house you want to buy in 5 years
• Paying for ½ of your child’s college tuition
• Helping your parents, sisters, brothers, nieces and nephews when they need assistance.

Time is your friend and the more time you have the better. The best time to set up a financial plan is when you’re young (even though you may not have much money).

Knowing what you earn, how you spend, and how you save for your future are the core components of money basics. 

This means creating a budget.  Yes, it is work.  And you may not like having to face the reality that you’re spending $2,800 a month but only making $2,600.  But we promise that it is worth it.  So, grab your checkbook or go online and record what you earned, saved, invested and spent over the last 6 to 12 months.  Use this Excel spreadsheet to keep track of your work.  Or if that is too 1980s for you, there are really good tools available online. One we like is www.mint.com¥.

Evaluate your spending. 

Are you spending money in such a way that it is not reinforcing the goals you set for yourself?  Are you surprised that you spend $175 a month on clothes and save nothing towards the car that you want?  As you discover the truth about your spending, you probably will have to make difficult choices.  For example, if you decide to save a certain amount each month for your son’s college education, stick to your plans.  Don’t use the money to pay for his soccer camp this summer.  In other words, put discretionary expenses on hold until you’ve provided for your future.  Of course, you or your family’s basic needs — housing, food, and health care — always take precedence.

Enlist help. 

Be sure to work with your spouse or significant other to identify and prioritize your financial goals. Otherwise, you may find that you’re working to achieve conflicting goals and, ultimately, accomplishing nothing.  Discuss long-term plans with your children and make them part of the decision-making process. It will help them learn money management skills, and it will help them understand why certain choices are being made.  Let your friends know that you want to spend time with them, but going to a movie has been put on permanent hold until you can get your credit card expenses under control.  If you need a boost to get started, talk to a Town and Country Bank Banker, an accountant or financial manager for additional assistance and support.

Keep focused. 

Update your spending every month or even at every point that you collect a paycheck.  It gets easier with time – especially as you start to achieve your goals.