If you want to get your finances right this year, make sure you start to carry out necessary checks beginning this first quarter. We are already in March and before you know it the first quarter is gone while some are still thinking that the year is yet to start.
While this in not intended to put pressure on your plans, or on you the planner, it will help you be on the watch as you execute your financial plans for the year.
Most of us start each new year with great plans but the problem tends to be with execution. In January you had a clean slate and planned to start afresh; did you list the personal, financial or professional goals or plans that you wished accomplish this year? How have you done? Have you made any progress?
This is probably the time to start preparing for the review, so that by the end of March you would have looked at the figures and know where you are, and again come up with strategies to enable you remain on track with your plans.
It is important to review the progress you are making with your finances periodically; First quarter in the year is a good time to reflect on your goals and plans, take stock, and see if you have lived up to your own expectations. It is a good time to identify any festering problems and time to make adjustments, changes or additions if necessary, says expert
With about nine months left to go this year, if you have not made much progress, it may seem overwhelming. Try to make some time, say an hour daily before the end of March to study your finances to see how far you have come these past three months. If you’ve made some progress in even two or three of the goals below, that is progress. Here expert list key areas of concentration as you review your Q1 performance.
Did you put a budget in place?
A budget is one of the hardest things to put in place yet it is one of the most important steps to take in addressing personal financial issues. Do you have a clear idea of how much you are spending each week, or month?
Have you tracked your expenses for a period and developed a clear picture of what can be cut back? You can use one of many online tools or just simply get out a pad of paper and track your expenses manually. You can’t make much progress if you don’t know where all your money is going.
Have you reduced your debt?
Most families carry too much debt, and often resolve to get their debt under control. Have you taken steps to reduce your debt and do you carry less debt today than you did on January 1st? Until you start to face your debt it will continue to grow.
The general rule of thumb and the fastest way to reduce your debt is to tackle your highest interest rate debt first. By automatic payments and making incremental principal payments each month, you will soon find your debt is under control. Don’t ignore your debt or wish it away; if it becomes a burden approach your lender and discuss the possibilities for rescheduling to make it more manageable.
Are you building your savings?
If you have not got a budget in place and you haven’t paid any attention to your debt, it will be difficult for you to save; they are all connected. You need to find the discipline to develop the budget, pay down or at least reduce your debt and then start to increase your savings.
Most financial advisors suggest that you should save between 10 percent and 15 percent or more of your income. Have you built an emergency fund over these past six months?
If you are suddenly faced with unexpected job loss, major car repairs, or medical expenses, you will be better prepared to cope if you have this financial cushion to fall back on.
The easiest way to start to grow your savings is to automate it by putting a direct debit in place so that you won’t be tempted to spend all your income but rather it can be directed to an appropriate savings vehicle. Most mutual fund companies make it easy for you to be able to automate your savings and investment plan.
Have you made a will?
If you already have a will, when last did you review it and update it to make sure you have included any recently acquired assets or new beneficiaries. Circumstances change. Perhaps your assets have grown or shrunk? Maybe you have had children or grandchildren since you wrote your last will.
Too many people avoid dealing with their mortality because thinking about death makes them feel uncomfortable.
However, dying without a will, or a will that is out-of-date, can cost your loved ones so much pain and throw away decades of hard work. Knowing that your young children will be cared and provided for should anything happen to you, will give you a huge sigh of relief.
Have you invested in yourself?
Your human capital is by far your most important asset as it encompasses your knowledge and skills. Have you invested in improving yourself through further education either formal or informal? Consider how much you could improve your long-term prospects through personal development.
Have you taken steps to safeguard your health as you get older through a sensible diet and exercise? By maintaining good health or taking active steps to improve it you could save yourself significant health and medical costs in future and be in a position to fully enjoy any wealth that you have accumulated.
The difference between those who attain financial security and those who do not, is simply the discipline to do something about their financial situation. If you are on track, congratulations! If not, don’t worry, there is still some way to go this year to put things right, but you do need to get started.
By: Modestus Anaesoronye
