fiscal fitness roadmap

  • Live within your means. 

  • Long term savings – if your employer offers a company match, at a minimum, save the amount required to qualify for the company match. As your income rises increase the % of long term savings.

  • Pay your monthly bills on time. Paying bills late will affect your credit rating and future ability to borrow money and/or you will be assessed a higher interest rate.

  • Have a minimum number of credit cards for travel and emergencies. When you do use credit cards pay them in full when the bill comes in.

  • Set aside 6 – 12 months’ worth of cash to cover operating expenses in case of emergencies or unexpected unemployment. This will take a while but do not give up.

  • Before signing a lease on your first apartment or purchasing a new home, develop an estimated budget to ensure you have enough monthly operating cash.

  • The budget template below will walk you through most of the expenses you should estimate on a monthly basis and accrue in savings for periodic expenses. If you have a negative variance you will need to cut expenses or increase your income.

  • At the beginning of each year, evaluate your current financial health and set goals for the next year (save for a car or house, pay off a loan, increase savings for children’s education, vacation, etc.)

  • Refresh the budget template annually based on changing income and financial goals.

  • Monthly, move budgeted accrual amounts to one or more savings accounts to save for periodic expenses such taxes and insurances, vacations, and household & car repairs and maintenance.

  • Use a monthly bill tracking sheet to ensure all recurring bills arrive and are paid on time.

  • Weekly, take out a cash allowance for discretionary personal expenses like occasional dining out, coffee, etc. This should be kept to a minimum. You will be surprised at how much money you can waste on “stuff” if you do not control access to your checking account.

  • Use a check register to track all check and debit card charges, balance your checkbook monthly, and review all charges and fees for bogus charges.

  • Review your credit card statement carefully for bogus charges.

  • Again - live within your means!