Being fiscally responsible is often a phrase we hear as it pertains to the government and spending. However, being personally fiscally responsible can lead to financial freedom and ultimately long term wealth. People that are fiscally responsible rely on two different factors for success: making everyday choices and looking ahead to the future as far as finances go. Mecham Dicus & Company is here to share some tips that can help you be more fiscally responsible.
Create a Budget
Budgeting is something that many people struggle with. There are many different formulas that people come up with to help them stick to a budget. One that is somewhat universal is 50% essential expenses, 30% non-essential expenses and 20% savings and investing. This is a good starting point, but you will likely make some adjustments depending on your financial needs.
Track Your Spending
You probably don’t realize how much money you spend until you actually sit down and track it all. Once you do that, you can see where you can improve in your spending and where you are doing alright. This is basically a great way to reflect on your financial choices throughout the month.
Get Rid of Debt
A big goal should be to get rid of debt. This is especially true if you have high interest debt like credit cards. When you are paying interest each month on a bill, you are taking away from money that you can save or invest to build long term wealth.
You should be making monthly contributions to a retirement fund at the very least when it comes to investing. There is no right or wrong way to invest. One thing that you should keep in mind is that you want to put as much into your retirement as your employer is matching. You are throwing away money if you aren’t at least doing that. Another way to invest is in real estate or other investments that aren’t necessarily cash. Cash loses value over time due to inflation.
How to Build Generational Wealth
Generational wealth is wealth that you can pass onto the next generation. This can come from life insurance as well as real estate. This can be a legacy of wealth for your descendants. It is important to make a will and testament early in your life so that you aren’t making any rash decisions. Even though most people don’t like to think about the thought of death, it is an important step in being fiscally responsible.
Business Consulting & More in Everett, Bellevue, Kirkland, Renton, Kent, Tacoma & Seattle, Washington
If you are a business owner and are looking for ways to be more fiscally responsible with your business expenses, you can rely on the experts at Mecham Dicus & Company to help you improve in that area. It is our goal to help you achieve success, and with our extensive knowledge and experience, it’s exactly what we can do for you. Call us today!