3 Tips for Building a Strong Financial Foundation

The internet is full of financial tips and information these days which is a good thing! If you have been paying attention even peripherally, you could probably name three things you need to build a strong financial foundation. Go ahead and say it with me.

• Track expenses and build a realistic budget. Do not spend more than you make!
• Establish a savings account for short term needs and invest for long term needs and retirement.
• Avoid high interest loans and credit that can be a drag on your budget and savings.

There is lots of detailed information on these financial foundations and I encourage you to look into it. These are all good things to do but too many of us don’t do them on a consistent basis. Good financial habits are like good healthy habits. We needs to practice them on a consistent basis for them to have a good affect. Consistency is the key to success! Here are my three tips to keep you consistent and building and maintaining a solid financial foundation.

Same time same place. You need to sit down for half an hour once a week to review your spending, budget and the week to come. This is way easer than exercising 3 to 5 times a week for an hour at a time! Once your budget is established, you will only need brief reviews, but you need to be consistent. Above all, set a day and a time. Be it with your Saturday morning coffee or your Saturday evening beverage, review your finances and schedule bill payments at the same time and the same place.  This will establish a pattern you can repeat and will repeat. Also, doing this in the same place will encourage good record keeping and make it easy for you to reference bills. You are building a foundation for good finances!

Review your credit reports regularly. Your credit is important so you should treat it that way! Low credit scores can cost you thousands of dollars.  A low credit will limit your loan options for a car or home and can dramatically increase your cost. Also, low credit score can affect your ability to get affordable car insurance. Make a determination, to have a high credit. For help understanding your credit reports and developing a detailed action plan to address your credit take a look here.

During your once week financial sit down, read a financial article or check out a YouTube video on the topic of personal finances. Do you know what the current interest rates are for car or home loans. Do you know why inflation is running high and how it can and does effect you? These are all great things for you to look into as they will help you build up your financial knowledge and help you to make good personal financial decisions.