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Financial Focus

5 Signs You're on the Path to Financial Success

The way we handle our money is a key part of financial wellness. Here are five signs that indicate you are on the path to financial success.

  1. You Put Your Goals in Writing. People with written goals are more likely to achieve them. It entails envisioning what you see for yourself and then using that goal as a reality. Financial goals can be both short-term and long-term. A short-term goal may be that you plan to pay off debt, whereas a long-term goal may be saving up enough money to buy a house. Be sure to revisit your goals at least once every 3-4 months and make adjustments when needed.
  2. You Use a Budget. Many people see budgeting as a distasteful duty. And it can seem that way if you are trying to correct years of financial problems in one day. But a budget is just a financial blueprint that shows income and expenses on a monthly basis. A budget will help you make informed decisions as to where your money goes.
  3. You Build Emergency Funds. Having an emergency fund to manage unforeseen circumstances can mean the difference between a financial disaster and a minor setback. Depending upon your budget, you can determine a set amount to put into a savings account from each paycheck. You may want your employer to directly deposit part of your paycheck into a savings account. 
  4. You Work to Get a Handle on Debt. Borrowing money is a useful way to manage finances provided you have a plan to pay off your balances. Obtain low interest loans to acquire an asset or improvement -- like a house, car or student loan and shop around for a low-rate credit card. Depending upon your situation, there may be options to get out of debt more quickly. Also consider a debt management plan to get a handle on any outstanding debt.
  5. You Check Your Credit History and Score. One in three Americans has never checked their credit history, according to a Bankrate study. Keep tabs on your credit history, which is used to calculate your credit scores--those three-digit numbers that help determine whether lenders approve you for new credit and what interest rates will be offered to you. Annualcreditreport.com is a one stop shop to check your reports from Experian, Equifax and TransUnion, the three industry standard credit bureaus.

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