Get Your Financial Health Checkup for 2015

BY: AMANDA KAY

“A budget is telling your money where to go, instead of wondering where it went.”
                                                                          -John C. Maxwell

This year is near a close so it’s the best time to get that yearly financial health checkup and create a budget plan for your money in 2015. If you are living pay check to pay check and have very little in your savings account, this article is for you! End 2015 with a bang with more money in your bank next year than you have in your account this year using these helpful tips: 

---

1.  Set up auto deduction of your pay check with your employer to multiple checking/savings accounts. I would recommend that you keep your savings account at a different bank than your checking account.  When your savings and checking are at the same bank, it’s so easy to refer to that “transfer function” through online banking when your checking account balance is getting a little low. Using different banks keeps your savings “out of sight and out of mind” because you never see your savings account balance when you log into your checking account.

---

Here is an example how you can use auto deductions to separate accounts to increase your savings:

---

You can have three separate accounts.
(1)  Main Checking account: Use to pay BILLS ONLY.
(2)  Main Savings Account:  Use for building an emergency fund
(3)  2nd Savings Account: Use as a Christmas Savings account.
                                              * Start saving for Christmas January 1st.
If you:
Auto Deduct only $65.00/pay period ($130/month) 
and distribute as below:

•  Emergency Savings ($40/pay period=$80.00/month)

           $960.00 saved by December 31, 2015.

• Christmas Savings  ($25/pay period= $50.00/month)                                                                  $550.00 saved  by November 1st 2015.

---

2.  Begin budgeting and start operating using the Envelope System. Use your main bank account for bills only. Have a separate envelope for gas/transportation, groceries, misc, and have a set budget for each envelope. This keep a visual of how much you have to spend and how long it must last. Once the money is gone…it’s gone.

---

3.   This year at your job’s open benefit enrollment,  make it a priority to really look into what your  job has to offer.  
Ask questions and see how the different types of benefits, could benefit you. Take advantage of 401K and contribute enough to where your company matches…this is free money!!  Don’t think you can’t afford it, think about all the mindless spending you have done over a course of a year. Start saving for your future!

4.   Set up savings account for each of your children. You can transfer as little as $5 per pay period and you can increase as your pay increases, and make additional deposits whenever you can.

5.  Pay off your debt. Get out all those outstanding bills and bills that have gone to collections together and pay them all off one by one, fast as you can, from smallest balance to the largest.

6.  Make your money grow! After 6 months of savings, reevaluate your interest bearing options, look into investing options and additional IRAs. Get with a financial advisor that could help you in this area.

---

This is just a quick guide on how you can create a budget plan for you and your family. Learn from the experts. Get in contact with a financial counselor that can help you with your personal budget and help you reach your financial goals. Please check out Dave Ramsey, who is a financial author, radio host and motivational speaker. He is known for encouraging people to get out of debt and gives them simple, step by step on how one can build financial wealth. 


Check out his website for lots of information, www.daveramsey.com