Manage your finances with a Financial Checklist.

“A Budget is telling your money where to go, instead of wondering where it went !”- Dave Ramsey?

Financial fitness is as important as Physical fitness. By having a healthy diet daily we maintain our physical fitness; same way by following checklists periodically we can have financial fitness over a period of time. It becomes easy to track and control expenses with the help of this. Also at the end of the month, you can justify if you are spending more on a particular item. You must know how you utilize your money, how you spend and save.?

Managing your finances becomes easier if we have a checklist.?Healthy financial fitness is influenced by many factors, like your attitudes toward money, decision-making, and behavior. Start your mindful money practice with the below steps for financial wellness.

Track Your Income

Calculate how much you are earning after taxes which will be the amount you take home. You will be managing all your expenses with this amount, hence it is very important to have a clear picture of this amount.?

If your work is project-based, like freelance income, blogger, etc then this might be a bit trickier. So It is good to calculate your take-home pay from the last few months and then take an average. It will give you your average income.?

Make A Budget

Making a budget will help you in managing your money effectively. Budgets should be realistic and clear, not too loose nor too tight. Make estimates on your needs and wants that you will require on a monthly basis. Then allocate your income according to the level of need. Your basic necessities like food, clothes, transportation, etc., and once those are satisfied you can move ahead with other purchases.?

A budget not only shows a path for reaching a financial destination but also acts as a flashlight to shine the way and ensure that you don't wander off.?

Track Your Expenses

Keeping track of your expenses is the most important step, otherwise, the effort of making a budget will be wasted. Go through all your bills and your debit and credit card statements, categorize them into three sections:?

• Necessity?(daily essentials, rent, transportation, etc),
• Fun?(dining out, going to movies every weekend, buying things you wanted, etc)
• Future?(Saving, investing, and debt payments beyond the minimums).?

After you have this ready, go back to your budget and check where you went wrong and where you were right. This exercise isn’t meant to make you feel guilty, it’s just to make you accountable.

Pay Off Your Debt

Paying off debt is an integral part of living a financially healthy life. Keep a check on your credit card expenses, not to overdo, and to pay the bills timely. You may be having an education loan, car loan, home loan, etc, the ideal way is to pay more than the minimum required payments if you can. This will save you money in the future because the longer you take to repay your debt, the more interest will be added.

For Example, When you receive yearly bonuses or incentives you can use a partial amount from it every year towards repayment of your loan instead of splurging.?

Set An Emergency Fund

Financial emergencies are part of life, for example, medical emergencies, job loss in the case of Pandemic, repairs, and maintenance, etc. It is good to have an emergency fund in tough times.?

Saving and Investing

Saving is a habit that should be inculcated in everyone in the early stages of life. Once you develop a habit of saving, you can move ahead with investing. An early start in investment is always good. Goal-based investing is the simplest way to start.?

Retirement planning

“Retirement is not the end of the road. It is the beginning of the Open highway!”?

Retirement is an exciting time, it is also a time of big changes in your life. So If you have planned for retirement then you can have a comfortable lifestyle in Retirement. Decide at what age you want to retire and how much you will need to save. Accordingly, Investments can be made.?

By taking time out to manage financial tasks, you can start developing good money habits. Crafting a monthly financial self-care checklist may help you stay focused and on track as you pursue financial wellness.?We hope that the above tips will assist you in defining your financial goals and lead you to greater financial health in the long term.?