"Act Your Wage" - Tips To Get Your Money In Order

Do you know what my major financial fear is? Not being financially secure. I assume this comes with age, taking a step back, and asking myself, “Do I have adequate savings to sustain my present lifestyle should I lose my work or there be some main life expense I need to handle?" or "Why did I spend my entire 20's living at or sometimes above my income and not concentrating on building wealth?" The responses to these questions can be terrifying, especially if the responses take you to consider that you aren’t financially protected. The truth of it is many people are financially dependent on their works, live paycheck to paycheck, and do not save closely enough should an unforeseen expense arise. To improved is to do better, so let’s discover the money mistakes you might be making and solutions for fixing.

Money Mistake 1: Not having my own financial plan

You cannot distinguish your next financial move if you do not know where you currently positioned. It’s significant to have a personal financial plan for your income and expenses that you use as a guide for expenses and savings. The key to living below your resources is to know your expenses and to spend less than you earn. A good monthly financial plan can guarantee you pay your bills on time, have funds to cover unexpected emergencies, and reach your financial goals.

Money Mistake 2: Not having an emergency fund

One of your savings priorities should be an emergency fund. While it isn't trendy, this unappreciated financial instrument really pulls its weight during tough times. Having money on hand that you can use for an unforeseen expense, or to pay bills if you lose your job, is vital because it can help you avoid relying on credit or tap your retirement savings. If you don't have emergency savings to fall back on, a slight money deficit can rapidly turn into main cash crisis. You should aim for at least 6 months’ worth of expenses saved in your emergency fund.

Mistake 3: Not saving before spending

Do you keep on worrying that you're not saving enough? Do you regularly depend on credit rather than cash to pay for the things you want or need? Rather than blame this monetary gap on your income, look a bit deeper, because the actual culprit may be the absence of financial importance. If you lean towards saving only what you have left over every month, you leave yourself open to not saving at all, as there may not be everything left to save. You should treat your savings like a bill and put yourself on a more self-controlled course by having a secure amount taken out of your paycheck repeatedly for savings. Save first, then spend what's left over.

Mistake 4: Not monitoring your credit history

As part of any personal finance plan, you need to know what your financial footprint has been up to this point. Items on your reports determine not only how creditors currently view you (financially judgmental if you ask me), but also what loans and credit cards you will qualify for in the future and at what rates. With identity theft and credit bureau data breaches increase, it is up to you to evaluate what is being informed across all credit reporting agencies for comprehensiveness and precision. You should request copies of your credit reports at least annually (I recommend www.annualcreditreport.com) to review reported information.

Mistake 5: Not asking for help

Even if your finances are in good shape right now, you may be overdue for a checkup. Reviewing your finances frequently can help reveal financial plan strengths and weaknesses, and identify changes you might need to make to adjust to your ongoing financial goals. If you're already in financial distress, don't let stress or embarrassment stop you from requesting for help. Facing financial problems early may help you make a full recovery. You should reach out to your accountant, credit counselor, or other trusted financial advisor to help you understand your financial situation and put you on a path to financial independence, check out

Cents Savvy - Michigan's Leading Credit Counseling Financial Services Company if you need assistance.

Managing finances is critical to your financial independence. This year, let’s emphasize on creating wealth and fixing the money mistakes of our financial pasts. I test you to “Act Your Wage” when it derives to your finances and build for an improved financial future.