It is a new year with a crazy whirlwind start. Let us not forget we have the power to change. This year one of my goals is to continue to work on my financial stability. My side hustle and savings are set, but more could be done. I have goals to reach that would allow me to partially retire by 40. If you have similar or other financial goals you are working towards, you have to maintain financial peace of mind. Follow along for ways to keep your peace!
Debt is probably the biggest worry most people have. When you have a lot of debt, it is hard to think about saving or early retirement. You should tackle that item on your worry list first. Take a look at all your debts. List them in order by amount, and handle them. There are many ways you can tackle the list. I would start with a smaller debt first and tackle them one by one. Set up payment plans if you have to for the larger debt and make sure the payments are taken automatically.
If your bad at saving or paying bills on time, automate them. Start by paying yourself first. Set aside a small amount of your check to put to the side. I have an automatic withdrawal to my savings and investment accounts every week, and you should too. Pick an amount that sits well with you and your budget.
Once you have paid yourself, pay your bills. Split them up by due date and set the automatic payments based on that information. My first check of the month is set aside for my mortgage and internet bill. The second check of the month goes to my water, electric, subscription, insurance, and phone bills. Whatever is left goes to me.
Budgets and Financial Plans
If your not great at keeping track of your money, it’s best to have a budget. You can uses software like YNAB (You Need a Budget) to help you list out and track your bills. This software helps give each dollar a job and is a cornerstone of having financial peace of mind. If you do okay without a budget, a financial plan and goals are what I use. I write out my investment, savings, and land acquisition goals. Then I make my plan specific and measurable with hard fast deadlines. I also review this plan bi-quarterly and update it.
When it comes to financial peace of mind you have to get organized. Get a budget or financial plan that clearly sets out goals and expectations for yourself. Start tackling debt that’s a burden on your life and automate everything.