The Mortgage Corner with GreenState Credit Union: February 2024 Edition
Posted by Oakridge Real Estate on Wednesday, February 14th, 2024 at 4:18pm.
The Mortgage Corner with GreenState Credit Union – February 2024 edition
If you've ever tried to get in shape, you know that there's no magic formula for exercising and eating right. You need the discipline to put your knowledge to work in the real world - even when it would be so easy to grab a super-sized burger and skip that trip to the gym.
Becoming financially healthy is not so different - there are just a few things to know, but just because something is easy to understand doesn't mean it’s easy to do. Luckily, you can often start to see benefits of effective financial management right away - in the form of extra cash.
Step 1 - Earn more money than you spend.
The first rule of achieving financial stability is to ensure that your income exceeds your expenses. Seems like an easy concept, right? Yet so many individuals struggle to balance their budget. The key is to control your spending habits and explore avenues to increase your income. This could mean taking on freelance work, investing in profitable ventures, or climbing the corporate ladder. Remember, a penny saved is a penny earned.
Step 2 - Thoroughly understand how and where you spend your money.
Understanding where your money goes is the next step in achieving financial stability. Keep track of your expenses, no matter how small. This way, you can identify areas where you can save. Perhaps you're spending too much on dining out, or maybe your monthly subscriptions are draining your wallet. A clear understanding of your spending habits can pave the way to more effective budgeting.
Step 3 - Savings and Investing.
Once you have a surplus of money and a clear understanding of your spending, it's time to start saving and investing. Saving allows you to accumulate wealth over time, while investing can multiply your wealth. Start a savings account, contribute to your retirement fund, or invest in stocks, bonds, or real estate. The choice is yours, but remember to do your research and make informed decisions.
Step 4 – Borrowing.
Borrowing can be a double-edged sword. On one hand, it can help you cover unforeseen expenses or invest in profitable ventures such as real estate. On the other hand, it can lead to debt if not managed properly. Therefore, it's essential to understand the terms of your loans and to borrow only what you can afford to pay back.
Step 5 - Protecting your Financial Stability.
Finally, remember to protect your financial stability. This can involve various things, such as getting insurance to cover potential losses or setting up an emergency fund for unexpected expenses. Having a financial cushion can give you peace of mind and secure your financial future.
Getting in financial 'shape' is a journey that requires discipline, planning, and a thorough understanding of your financial habits. By following these five steps, you can work towards a more financially secure future. Remember, the journey of a thousand miles begins with a single step.
For additional information or a financial health consultation please contact one of our lending partners at GreenState Credit Union at www.greenstate.org/mortgage
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