Steps You Need To Take To Be More Financially Responsible.

We all know how important being financially responsible is..you owe it to yourself, your family, and your children. There is nothing like the feeling of being financially secure; knowing you are going to be OK if the SHTF. That is why we have worked so hard to get all of our money working for us and all of our ducks in a row…for the time that “what if” might happen. Also, because we plan on having kids soon, we want to be able to pay for or help them pay for the majority of their college expenses. I don’t want to leave my children with $100,000 in debt the day that they graduate!

That all being said, I thought I would assemble a list of what I thought were the most important steps for you to take starting right now so that you can be more financially secure:

1. Save, save, save. Every time you get paid, you should be setting aside at least 10% of your paycheck for yourself. Pay yourself first, they say, and I cannot agree more. What is the sense in working if every dollar you make is going right back out the door? Make it automatic; have the bank automatically take 10% of every check and put it in a savings account. After a year of this, you will not believe how much it adds up to, and after a while, you won’t even miss it.

2. Stick to a budget of some sort. We do not budget down to the penny, but I do monitor our spending and watch our accounts on a weekly basis. It is what works for us. If you know you can afford X amount for food every month, stick to that plan. If you can afford to go out to eat twice a month, make sure it is only twice! Budgeting to the penny can be frustrating, but making a general budget is much easier on the brain and will still keep your spending in check.

3. Pay off all your debts! If you have credit card debt, make this the first step. There are a few methods out there to get that debt down, but the most effective for us was the snowball method, where you concentrate paying down one card at the time, and after each card is paid off, move that payment over to the next card along with the minimum you were paying on it. Eventually your debt will be gone. What a feeling that is!

4. Get organized. There is no way you can track all of your expenses and income if you have no idea where anything is! We have a great filing system set up that lets me access my info on any account at any time very quickly. Also, you could use an online system that combines all of your accounts onto one page, so you only have to look at one site. Bank of America offers this in their “My Portfolio”, and Yodlee is another great site for this.

5. Set goals for yourself. What is the use of money if you do not have any goals for it? Whether it be a new car, moving to a better place, starting a business, or paying for your child’s education, you need to set goals. What better way to stick with a budget than knowing that you are doing it for a reason?

These 5 steps I think are the most important ways to becoming financially responsible. Sure, there are many things that could be added to this list, but in general, these are the steps we followed in order to get to the place we are in today. Do you have ideas for how to become more responsible? I would love to hear about them!

You might also like:

1. Who Is Responsible For Paying The Debts Of A Deceased Relative.
2. Getting Financially On Track And A Book Giveaway.
3. Fighting Your Debt, From The Small Steps To The Big Picture.
4. New Rule: Pay Only The Minimum On Your Credit Cards.
5. Cook Up A Plan For The Future In Three Easy Steps.

1. New Moon (and Personal Finance Links)
2. Credit Card Skip-A-Payment Offer Does You No Favors
3. Planning your Budget