This month, we recognize our “Financial Freedom” in addition to celebrating the 4th of July, fireworks, family get togethers and hot dog eating contests. July is also a good month to review the financial goals you set at the beginning of the year during Financial Wellness Month.
Where do you stand with your personal Financial Freedom? Do you have an emergency fund or a monthly budget? Do you need to pay down your credit card debt? Do you take advantage of your employer’s 401(k) plan and contribute the maximum amount to receive their match? Have you created that 529 college savings plan for your grandchildren yet? Let us review some of these areas together to help you reach your financial goals and find your Financial Freedom.
Emergency Fund
“In a 2019 AARP study, 53% of adults said their household did not have an emergency savings account.” We all have those months when the A/C stops working, along with the dishwasher and then something needs repaired on our car. Having an emergency fund can make these situations less stressful and worrisome. A good rule is to have three to six months of your expenses available in an emergency fund. If this seems too hard to achieve, then start with a smaller amount like $1,000. Then you can slowly build it from there by contributing a set amount each month.
Monthly Budget
How much do you spend on utilities, mortgage, groceries and other essentials each month? What about entertainment, dining out and extracurricular activities? Are you spending more than you make? Are you able to save for an emergency fund, retirement account or school? By creating a budget, you can better understand where your money goes each month. Doing so will also give you more control over your finances. Keeping track of and knowing how much you earn, save and spend will help you achieve your Financial Freedom and reach your financial goals.
Credit Card Debt
Did you know the “average American family credit card debt equals $6,270” according to the Federal Reserve’s Survey of Consumer Finances? One way you can start paying down your credit card debt is by moving your balance(s) to a card that offers 0% interest on transfers. You avoid paying interest and can instead focus on eliminating the principal balance. If this is not an option for you, there are several types of loans or lines of credit that you can access to also consolidate your credit card debt.
Putting your finances in order will help you feel more in control, more organized and less stressed. Let us help you discover your path as you explore your way to Financial Freedom. Give us a call today at (301) 733-7777.
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