Without structure, daily life would be difficult to manage. The same can be said for personal finances. Creating structure in finance can help you easily manage your money, reduce debt, and save and invest. On the other hand, a lack of structure will likely lead to out-of-control debt, and little or no savings and investments. Basically, zero protection from life’s unexpected occurrences.
Have you ever heard of the 50-30-20 rule? It’s a simple way to take post-tax income and divide it into Needs, Wants, and Savings. If you have an existing budget, then you can easily do the math to see if any changes need to be made to your spending habits. For those who don’t have a budget created, Click HERE to download our Budget Worksheet and Click HERE for our Debt Worksheet.
Seeing your Needs in writing compared to your debt will help you realize how much money, or how little in some cases, remains to spend on Wants if you’re going to be able to put 20% of your monthly income towards Savings. Creating structure is the easy part but being disciplined enough to adhere to it is another story. If we told you that structure in finance can improve health, would you make a positive change and stick with it?
Tracking Happiness published an article titled “5 Ways to Create More Structure in Life” and it’s terrific. In the article, the writer referred to a study conducted by the National Library of Medicine regarding the importance of habits and routines. Their research proved that routines have a positive impact on health; emotional, mental, and physical. Consider the impact debt has on daily life. Feeling under water financially causes stress, which negatively affects all aspects of health. Therefore, getting control of finances can improve overall health and wellness.
Contact us with questions regarding Investment Management, Insurance Services, Estate Planning, Retirement Planning, and Tax Planning. 800-689-3935 We’d love to help you get control of your finances and reach your goals.