Financial Literacy Month: Put Finances Back on Track

You may not be there yet, but you’re about to hit a money slump! Many of us made financial resolutions at the beginning of the year. We started out strong, but research shows once we hit April, it’s all downhill. That’s why I suggest that April, especially since it is Financial Literacy Month, is a good time to reevaluate your money habits.

I tell my clients at Cowen Tax Advisory Group that you can take four simple steps to get your finances back on track.

Put it on Paper  I believe that you don’t really have a solid understanding of your financial picture until you write it down. Start with your monthly income in one column and your expenses in another. There are two types of expenses: your fixed expenses like your mortgage and car payment and your variable expenses like groceries, gas and entertainment.

Save $100 per month  I suggest you take a good look at those expenses and find a way to cut $100 from your monthly bills. It’ll be easier than you think. You bring lunch twice a week instead of going out or you work out at home instead of the gym. You invite friends for a game night instead of going to the movies and you use those savings to build up an emergency fund if you don’t have one, or put the money toward your retirement.

Cut debt by 15%  Nothing weighs on your finances like debt. The average credit card debt is more than $15,000. I suggest that you start by attacking the credit card with the smallest balance and the rush you get from cutting up that card will build momentum to attack the cards with larger balances.

Envision your future  I suggest you ask yourself questions like: When do you want to retire? How often do you want to travel? What about that dream house or your kids’ college education? Then, set up a specific account for each goal and have money automatically deposited. That will help you keep track of your progress and stay engaged.

If you’re feeling overwhelmed getting your finances back on track, consider seeking out a trusted financial professional to help you focus on your finances. I’d be happy to help. Email me at roger@cowentaxgroup.com.

With more than 35 years in the business as trusted tax and retirement planning advisors, we at Cowen Tax Advisory Group treat our clients like family, take pride in our work and make it easy! Find more at cowentaxgroup.com

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