These tips will help to enhance your personal finance efforts.
Step 1: Pay Yourself First
• It is an excellent practice to make sure the first one paid is yourself. That is to say, you should allocate at least some amount, however small it may be, to regular and consistent savings so as to build up a cash reserve for emergencies and save for retirement.
Step 2: Classify Your Expenses
• Start by listing your fixed expenses, such as housing, car loans, childcare and other bills with the same amount due each month.
• Next, list the average dollar amounts you pay for variable expenses, such as utilities, phone bills, credit cards, cable and internet services.
• Finally, think about your large, irregular expenses, like car and home insurance premiums that only come up a few times each year, and also consider unforeseen events and emergencies like household or car repairs and vacations.
Step 3: Allocate Your Funds
• Review your expenses and always be aware of where your dollars are being spent so you can recognize where spending is important and where it’s truly discretionary. Being mindful of this helps develop better discipline and makes it less likely you’ll overspend on unnecessary things, potentially to the detriment of things you really need.
Step 4: Plan Your Payments
• Organize payment dates, prioritize bill payments and budget for daily expenses such as gas and groceries. Planning in this way can help you avoid late payments or an unexpected shortage of funds.
Please contact an Oritani Bank representative to help you reach your financial goals at 888-ORITANI or visit www.Oritani.com for more information. Oritani Bank is an Equal Housing Lender and member of the FDIC. This article is intended to provide general consumer information and does not provide legal or tax advice.