Here's Your Money Medicine to Save You From a Future Financial Headache
Your July Monthly Money Checklist: When is the Best Time to Refinance, Emergency Funds and the Importance of Financial Planning
July 9, 2019 .2 min read
Sometimes it might feel like the financial to-do list is building up faster than you can get to it. To avoid feeling overwhelmed, here are some simple items that will help you get your finances in order for the month.
First things first – one of the best things you can do for yourself financially is making sure you have your emergency fund filled! This should be the very first item on your financial to-do list:
Plan, Plan, Plan:
Whether you’re a natural planner or not, it’s best to try to set aside some time at the beginning of the month to assess your finances for the future.
Evaluate where you’re currently allocating your money. Do you have a high yield savings account? Are you contributing to your 401K or setting money aside for a ROTH IRA?
Checking in on those more extensive plans that are outside of your typical monthly budget will save you stress in the future and help you feel confident in how you’re managing your own money.
Every month or so, it’s a good idea to check in on what you might be able to refinance or negotiate interest rates.
Has your credit score changed?
Are you able to refinance some car payments or student loans for yourself or your child? The higher your interest rate is on a loan, the more money you will end up paying in the end. You might be able to negotiate an interest rate this month, which will end up saving you a bit of money. This money can be added to your savings, giving you that extra boost of reassurance that your finances are where you need them to be.
Once you have this funded, you’ll be able to adequately allocation money to other areas of your life. Then if something unexpected pops up throughout the month, you’re prepared with your emergency fund.
We recommend putting six months worth of living expenses or 50% of your gross annual income away into your emergency fund. Chances are that you won’t have to dip into your emergency fund each month, so after a few months, you’ll have a lofty emergency fund built up. The last thing you want to worry about during an emergency is if you have enough money put aside to cover the costs. This will help to ensure that you do!
Meredith is a Philadelphia native with a bachelor’s degree in Integrated Marketing Communications from Duquesne University and has worked in digital marketing for over seven years. She’s passionate about writing to women to help them feel more confident in their financial lives.