Determine Your Inspiration and Motivating Factors Define your inspiration and identify motivation to continue moving forward
Understand and Evaluate Your Financial Picture Track cash flow, review spending to see where your money is going, and make a list of of all debt (credit cards, student loans, auto loans, mortgages, etc)
Identify and Prioritize Financial Goals Create a list of your short-term, mid-term, and long-term financial goals then prioritize
Prioritize and Establish a Debt Payment Strategy Use your debt list to implement a debt payment strategy by using the avalanche, snowball, or a combo method then evaluate, monitor, and adjust as needed
Create and Implement an Achievable Budget Begin utilizing a realistic budgeting system that works best for your lifestyle and make adjustments to adapt to changing needs
Save for a Starter Emergency Fund Save between $500 to $1500 towards your starter emergency fund to plan for sudden, unexpected expenses
Save 3 – 6 Months of Expenses in Emergency Fund Increase your emergency fund by saving between 3 to 6 months of living expenses to plan for sudden, unexpected expenses
Invest in Retirement Savings Save at least 15% of your pretax income annually for retirement, setup automatic contributions, and get your employer’s maximum matching contribution (free money!)
Pay Off Your Mortgage If applicable, apply extra money toward paying off your mortgage and achieve total debt freedom
Build Financial Security and Give Back Build a better retirement, set new savings goals, make charitable donations, and pass on legacy by making sure your loved ones are financially secure
