Many people make resolutions for the new year such as: organize the house, clean out the garage, pay off bills, get in better physical shape, exercise more, go to the gym, eat better, lose weight. What better way to start the new year than with a resolution to give your finances a health check-up?
Here are some questions to consider in giving yourself a financial health checkup include:
Do I have a budget designed around my needs?
What does a good budget sheet include?
Do I have an emergency fund with enough money to pay my expenses for three to six months?
What is my total debt?
What is my plan to reduce or pay off my debt?
Do I have a savings account or retirement account?
Do I have a list of my monthly/yearly expenses?
Do I have protection in place should I not be able to work or to take care of my family should I no longer be around?
What is my total after tax income?
Do I have financial goals in place for the month, for the year and/for retirement?
Do I have a plan to achieve those goals and action steps to handle obstacles that get in the way as I work on my goals?
There are numerous budget sheets that can be found online. Consider one that addresses fixed expenses such as mortgage or rent, car payments, insurance and loan payments, expenses that fall into the same dollar amount category monthly. The budget should also include a section for variable expenses like groceries clothing, fuel, and phone bill – those expenses whose dollar amount change from month to month.
Finally, a good budget sheet should provide for a listing of luxury expenses i.e. numerous cable channels, travel, entertainment, eating out; those are things that one could reduce or delete if the fat needed to be trimmed from your budget. For starters, consider the using a budget sheet which you can add to or delete from to make this budget outline fit your needs.
See the following template for tips:
Income
Monthly Income 1:
Monthly Income 2:
Total:
Expenses
Fixed need costs:
Mortgage/rent
Property taxes
Homeowners insurance
Auto insurance
Personal liability umbrella
Personal articles policy
Dental insurance
Health insurance
Personal loans
School loans
Car loan
Variable need costs:
Life insurance
Electric/water
Gas
Cell phones
Supplies
Car fuel
Auto maintenance
Groceries
Day care
Children hygiene/clothes
Business travel
Dry cleaning
Health
Haircuts/grooming
Clothes
Donations/tithing
Interest:
Amount:
Balance:
Rate:
Total Fixed Need Cost:
Total Variable Need Cost:
Total Need (Fixed + Variable) Costs:
Total Available to Save:
Luxury Costs (fixed and variable):
Amazon Prime
iCloud Storage
Gym Memberships
Cleaning Service
Cable
Starbucks
Home Upgrades
Eating Out
Travel
Gifts/donations
Total Luxury Costs:
Total Monthly Costs (Need + Luxury):
Total Left Over from monthly income after Luxury Expenses: