The Kitchen Table

In the spirit of helping people be more financially responsible in the New Year, I’ve come up with a list of down to earth common sense advice to help you reach your money management goals.

• 1. Set Financial Goals – Plan for the future. Think about major purchases, and infrequent expenses. Think about your monthly living expenses and monthly income. Think about your budget and savings goals. Doing this will allow you to create a road map that will help you clearly see the path you want to take.
• 2. Save Your Money – You need to plan for the unexpected, make an emergency fund a priority. Try to save 5% to 10% of your net income. This will allow you some breathing room when the inevitable unforeseen bill arises.
• 3. Develop a Realistic Budget – Distinguish between “wants” and “needs”. Take care of your needs first and follow your spending plan. But make sure you allow room for some “wants” too. If you never allow for a meal out or a new pair of shoes you aren’t being realistic and you soon find yourself sidestepping the budget and failing to meet your goals.
• 4. Don’t Let Your Bills Exceed Your Income – Avoid making minimum payments and try to payoff credit card bills in full. Credit is a convenient way to pay for planned purchases. When you start using credit for everything you put your savings and your financial future at risk.
• 5. Pay Your Bills On Time – If you want a good credit rating you need to pay your bills as agreed. Avoid the stress and expense of late payments. Making payments on time needs to be a top priority!

I know that “knowing is only half the battle”, the other half is living a budgeted life, and that isn’t always easy. But if you apply these 5 common sense practices to your everyday life you will soon find yourself on the road to financial freedom!

*Employees of LPI Loans and our affiliates are not attorneys and LPI Loans DOES NOT provide any legal advice and users of this web site should consult with their own attorney for legal advice.