Money Moves

It’s no secret that money makes the modern-day world go round, but most people would be surprised to know that almost 8 out of 10 people are in some form of debt, and that same percentage of people live paycheck to paycheck.

Understanding finance, particularly financial planning, is a crucial skill in the 21st century.

It’s not just about managing your money in the present, but about setting yourself up for a more secure future.

Financial planning instills discipline and structure in your financial life, and the benefits extend beyond just money.

It's a tool that can help you achieve all of your non-financial goals.

So, what are some reasonable financial goals to start with that will help you achieve all of your other goals?

First and foremost, it's crucial to tackle your debt. Whether it's student loans, credit cards, personal loans, or gambling debts, the key is to pay it all off and stay out of debt. It’s tempting to only pay the minimum on your credit card statement, take out a loan for a new car, or go on a payment plan for the latest iPhone.

But it’s important to remember the bigger picture: you’re sacrificing a day of pleasure for a lifetime of financial security.

Secondly, create an emergency fund. Ideally, it should cover at least six months’ worth of expenses. If it costs you $3,000 a month just to survive, then you need to have about $18,000 saved up. This fund would only be if, for some reason, you could no longer earn money.

For no reason should you ever take money out of this account unless you have lost your source of income. Having this fund in place provides a sense of security, knowing that you're prepared for any unexpected financial situation.

Third, establish an investment plan. In other words, have your money start making money. Just to be clear, I am not a financial coach, and I am not telling you what to invest in. Whether it be mutual funds, stocks, bonds, or even real estate, to set yourself up financially, making calculated investments will help you achieve many other life goals.

Finally, and arguably most important, make a budget. Track how much money you spend and on what. Then, make a plan on how you want your money to be dispersed. Make sure to account for any and all costs. People without a plan will almost always fail.

Now that you know everything there is to know about financial planning (haha), you can begin to complete your life’s work. Meantime, you don’t have to worry about money because you have a plan. This financial security will likely give you more time to achieve the things in life that you want the most.