Luckily, Klug says that coming up with a specific number is not that difficult, regardless of your financial goal. “It’s not good enough to say, ‘I want to save for retirement.’ You could ask anyone on the street if they want to save for retirement, and they’ll say, ‘You bet.’ You need a specific number.” “Specific goals are critical,” says Klug. "Setting goals is important, but simply having a general idea or saving here and there won’t cut it," according to Klug. Once you have a long-term vision of what you want in life 30, 40 or 50+ years down the road, you can make goals today that can get you there. As Klug says, “Getting your finances in order is asking yourself, ‘Where am I going? What do I need to do to get there?’”Įverything you do to organize your finances is, in some way, looking out for your future self. When do you want to retire? Do you want a college fund set up for your kids? Organizing finances starts with a goal and envisioning your future. Think about what sounds good and make a plan “Once you have that under control, then we can start looking at future goals,” she says.
ORGANIZE FINANCES HOW TO
Hopefully it’s positive, but if it’s not positive, start looking at credit and how to get rid of debt.” Aim for a credit score above 700, and create a plan to pay off debt. “Add up everything you own and subtract out what you owe. Next, Klug says, is to look at your net assets. “The very first thing you need to have is an emergency fund.” She suggests aiming for 3 to 6 months of your monthly income, or 6 to 12 months if you’re in a single income household or have a highly specialized job with few marketplace openings.
Similarly, Klug explains that the first step of getting your finances in order is making sure you have the basics in place. You can’t drive on a road trip without a license. Going through life without getting your finances in order is “sort of like saying, ‘I’m going on vacation and don’t really know the destination,’” says Alyson Klug, Head of National Sales at TD Wealth.īy taking the time to know your money coming in and money going out, create goals and practice good financial habits, you’ll set yourself up for the trip of a lifetime.
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