In this article, I outline the essentials for me so that I feel good about my finances. We all have our own vision of what we want for our financial lives because our life goals are different. However, I believe that certain points should be part of our life such as knowing exactly what we owe to others, regularly checking our credit rating, making a plan to pay our debts, having an amount of money in our bank account and other ones. Let’s check that out 🙂
Know how much you owe
Have it write on your notebook: Do you owe people (friends, family)? How much is left on your credit cards? It is often something that is avoided. But we must not. Especially when we aim to be as independent as possible with our money. And clearly, its makes us sleep better at night.
Pay your total credit balance or at the very least the minimum
And add if you can during the month, even if its 5$. But first, prioritize on paying the minimum. Its very important for your credit score.
Check your credit score at least twice a year
I am with Equifax , it’s a company that compiles credit reporting data from many sources and creates a credit file that reflects your personal credit history. they notify me by email if a change has been made to my file.Several companies of this kind exist: you should look in your area. Sometimes it’s even free. Even if you have to pay, it’s worth it. A credit is so important: whether it is for the purchase of a house, a car or even a personal loan, a household appliance that has just broken. Make sure your rating is good. This is important. I insist on this point. I have a friend who paid her accounts always late. Therefore, she had a bad credit. I didn’t let go until she let go of this bad habit. Especially what it wasn’t about money. Just procrastination. This bad habit brought her the fact when in her life, she had to replace her oven and her fridge which let go, the supplier did not want to give her credit. It’s terrible, especially my friend is a single mother. But it’s just not a situation that someone likes to get into.
Have an emergency fund
They talk about it everywhere and it’s so true. At first it is discouraging when the amount is small. But do not underestimate the power of time: even if quietly, this amount grows with a substantial deposit, no matter how small.It feels good to have an amount of money sitting in our bank ccount, as little as it is. We get discouragethat amount in your account. First, set yourself the goal of having the minimum in your account so as not to pay the anfixed user fees. Then, the smallest surplus that you have, increases your account.
Have different accounts with your bank
Make sure they are free. Sometime they are, if you just deposit. You could have different accounts for different purposes such as: house cashdown, expenses (superfluous), account for expenses for children, renovation of the bathroom. Some banks will not charge to open an additional savings account. For example, me and my spouse have a children’s account: it is in this account that the direct deposits from the government are made and also the withdrawals from the school. It’s an account for their studies. NOTE: I strongly recommend opening a college savings plans for your children but while waiting for you to find the best one for your family (like me) it is better that the money remains there and that it is not used for household expenses. As you see, i dont have everything figure it out, i consider myself very organizing, but some business is still pending. Surely me and my husband are doing research to choose which fund we are going to choose to put the money for our children’s studies.
Read books on finance
I love to read books on this subject. But I would be lying to you if I told you that I know all about it. In fact, everything that is about investment; I read but I am far from understanding everything. I say again, it’s a subject that interests me but just not right now. That said, books on finance are a good course to have in your repertory. Read it and take notes or highlight it (if it’s yours of course). authors such as David Bach, Dave Ramsey, Melissa Leong, are good reputed experts.
Contribute to your pension
Maybe your retirement is a long way off. But we also know that it will come faster than we think. Many companies allow you to contribute with a small amount that they withdraw with each pay check. You should do it. These amounts can be small. At some point, we no longer realize that they are removing from our pay check. And any amount you get, will be that much less. And when you earn more, you’ll put more.
This are the points that i am comfortable with. But in the future- soon- i want to invest. My goal is to have a rental cabin one day.
