Planning for your future doesn’t just revolve around numbers and calculators. Instead, focus on what really matters most to you and plan to your values. Here’s how to get started with the life you want.
Consider your values
Write down what matters most to you. Things like being able to retire comfortably, paying for your child’s top college choice or living debt-free often top the list. There are no limits on the size of your list. Prioritize your list once you have what matters to you written down.
Know where your money is going
Look at your monthly expenses. You may be surprised to see where your money is going. It’s easy to underestimate the cost of dining out, entertainment and shopping. You may also be spending more than needed on cell phone bills, utilities and weekly groceries. And don’t forget monthly credit card spending that you may not pay off when the statement comes. If it looks like you’re spending too much, look for areas where you can cut back.
Compare your spending values to spending behavior
Are you saving or investing enough for a comfortable retirement or top college choice? Are you dining out or seeing movies with all of your extra cash after paying bills each month instead of putting money toward these values? If your spending doesn’t align with your values, some changes are in order. Consider a money management tool to help you track your spending and create a budget you can live with.
Plan to your values
Set financial goals based on your ideals. Then commit more of your money to what matters most. Be sure to revisit your values and spending often to keep them aligned.
Article provided by Local Government Federal Credit Union.
The advice provided is for informational purposes only. Contact a financial advisor for additional guidance.