It can be difficult to truly see your financial situation for what it is when you are so close to it, and it is not uncommon to miss some of the big things because you’re focused on the daily, or even vice versa.
But what can you do to find that happy middle ground? To be able to see the big picture, while still able to focus on your daily expenses and balance the books?
VIP Finance of Texas knows that sudden expenses, surprises or emergencies can affect your cash situation, so we made our top 4 easy ways to get a zoomed-out look at your money, because everyone needs a little help now and then.
Read on to see what you can do for your money, future, and family!
Track Your Income
This is always the best place to start, as you need to get a clear picture of where you are starting, where your budget can begin, and what kind of cash flow you currently have.
Are you making enough to pay all of your bills and then some? Are you making enough to save? Do you have alternate, or multiple, cash influx points? How do taxes come into play here? Will your income change, either raising or dropping, in the next few months?
All of the above questions can help you get a great first look at your cash and financial situation, and all can greatly benefit you in your next step.
Track Your Expenses
Of course, if you track your income, the next logical step is tracking your expenses. They really are two sides of the same coin, right?
So, now that you know your income, find your ‘outcome’ or how much you are left with after your expenses are subtracted from your income every month.
You might think you are really tight when in reality you’re doing just fine. Or, you may think you are fine when you need to lighten the ship a bit. Either way, being informed won’t change your situation, but it will let you know what your next steps are.
Make an Emergency Fund
An emergency fund is a necessity for everyone and should hold anywhere from three to six months’ worth of pay, for in case there is an emergency or layoff you weren’t expecting.
This might sound like a lofty number, and it can be, but whittling away by putting as much as you can into savings each month is a safe choice and one every family should aim to make.
Try your bets to shave off some unnecessary expenses and put that money directly into savings. Or, use the ‘pay yourself’ method first, and then live off what you have left after you put a chunk in savings.
Think Big Picture
As much as the here-and-now is important, the long-term is too! Make sure you have a plan for the future, even if it’s just yearly savings goals cut into 12 monthly installments.
Every little bit of forward thinking and planning can drastically help you be stable, safe and sound in the future for any of life’s little bumps in the road.
Know Your Backup Plan with VIP Finance of Texas
We know that things pop up in life, and if they pop up quickly, and you don’t yet have your emergency fund in place, then come visit us at VIP Finance of Texas for an affordable, simple and payable car title loan.
We have the lowest rates, the longest terms and the most protection for our clients, meaning we can help you get back on your feet and back on your financial track faster!
Call or visit one of our six locations today!