Whether you are a college student, a single mother with two kids, a well to do professional, or a retired married couple, I would like to share with you 7 goals to having an excellent financial management rating, to quickly improve your financial health.
Although many people are familiar with many of these goals, and even desire to meet them, the statistics say we are struggling to meet these goals. So, take the time to read through each bullet carefully, and then use these goals to put yourself on the road towards financial freedom.
- Use credit responsibly. Only use 30% or less of the credit available to you. That’s right, only 30% or less!
- Minimize your monthly debt. Only have 50% or less of your monthly income going towards debt.
- Control your monthly spending by minimizing the amount of fluctuation in your monthly obligations. Do not exceed your average monthly expenses.
- Cover your monthly expenses and then some! Have enough cash in the bank to pay one additional month of expenses.
- Make savings a top priority! Put more than half of your leftover cash into savings versus personal spending.
- Keep your savings. Keep at least 90% of the cash you’ve saved in your savings account.
- Save for long-term stability. Have enough cash in savings and investments to cover at least 7 months of your average monthly expenses.
So, many of you may be thinking, “I am nowhere near any of these goals!” That’s OK. Don’t worry. By incorporating these 7 goals on a daily basis, you are practically guaranteed to improve. For those of you who might be thinking “I already manage my finances well!” First, let me say that is great, keep up the good work! But, don’t forget to share your comments and ideas with everyone else.
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