Nurturing Your Assets

Nurturing Your Assets

3 minute read

Before you can nurture your assets, you have to have an idea of what you want your money to do for you. Common goals include:

  • cover monthly expenses
  • cover unexpected costs like a major car repair
  • have cash for vacations
  • put away for retirement
  • save for kids’ college education

Once you’ve identified your goals, you can start making plans to nurture your cash and the rest of your assets. Here are several ideas that will help:

    Understand your personal financial picture. It’s far too easy to think you understand what your costs are. But until you take a close look at your bank accounts, you might be missing something. Perhaps there’s a subscription you didn’t remember signing up for or a gym membership you don’t use any more. The first step is to review what you’ve already spent.

    Track your spending for a month. Many times, money gets spent in unexpected ways. For example, you might have no idea how much you’re actually forking out for fancy coffee. Tracking your expenses for a month will show you where you can tighten up the purse strings.

    Set a monthly budget. Having a generic budget isn’t enough. You need to have a budget specific to each month. Payroll changes monthly and so do pay dates. If you don’t get your check or automatic deposit until the eleventh, you might not be able to wait until then to pay your rent or mortgage. You have to be in control and tell your money where to go every month, or your money will control you.

    Build an emergency fund. The quickest way to get pulled off-budget is an unexpected expense, like a pet surgery or a major car repair. If you don’t have funds set aside for events like this, you’ll be forced to pull money from other areas or go into debt to cover them. Most experts suggest three to six months of expenses, but $1,500 is a good starting point for an emergency fund.

    Put savings on autopilot. For retirement and other long-term savings, using automatic withdrawals is the best way to ensure you actually save. You can set up payroll withdrawals into a 401(k) account so you never see the money in your paycheck. Similarly, you can establish automated withdrawals from your checking account into a savings account so you aren’t tempted to spend frivolously.

    Pay down and minimize debt. While debt is a reality most people can’t escape, having too much can be a negative. Try to avoid going into debt for daily items like food. Always pay more than the minimum payments on your credit cards and loans to lower the overall interest.

    Increase your financial literacy. It’s hard to get ahead in the financial game if you don’t understand all the opportunities available to you. You can increase your financial literacy in a couple different ways. You can spend some time with everyone’s best friend Google on topics that interest you or set an appointment with a financial advisor. Either will help you walk away with more information. 

    Taken together, these steps can help you make intentional plans for your money. You will be able to nurture your assets in meaningful ways that move you toward your financial goals.

    ©️2023 Amplified Life Network

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