Financial Planning Month presents a fantastic opportunity for you to visit your financial situation before the holiday season. Understanding your finances is important no matter where you are in life. Whether it be a car, a house, or another purchase, knowing how you are going to afford it can be a struggle for many people. Having a financial plan and budget in place can turn that struggle into a strength!

Here are some financial planning tips you may want to consider:

  • Make a budget
    • Start with determining what your fixed monthly expenses are and search for other areas you can cut expenses. Dining out, for example, is a common expense many people try to cut from their budgets.
    • The holiday season is a great time to start. You can budget your gifts & travel expenses, and then begin the new year with a set plan for next year.
  • Pay your bills on time
    • Paying late can cause additional fees as well as negatively impact your credit score.
  • Set up a savings plan
    • Even if it is a small amount every month, it adds up fast!
  • Open a savings account
    • It seems simple, but many people do not have savings accounts, which allow you to earn interest on your money.  
    • Setting up a direct deposit into a savings account is a great way to have money automatically saved for you.
  • Sell items you don’t use
    • If you can’t sell, donate. The values could be tax deductible.

Having a financial plan can also benefit you in the case of an emergency. Anything can happen at any time, like a sudden job loss or an expensive medical issue. Emergency situations are often emotionally and financially straining. Having the ability to remove financial strain from an emergency can help you focus on solving the problem and getting your life back on track.

Setting attainable financial goals in the short term is a great way to start planning your future. You might be surprised how quickly goals can be reached. Your financial plan acts as a guide for you throughout your life. It allows you to be in control of your income and expenses, so you can better manage your money to hit your goals for the future. With a financial plan, you can better anticipate that you have the proper amount of funds when the timing is right for your next step.

Visit First Bank’s Branch Locator for the closest branch to discuss your finances!