With November wrapping up, Financial Literacy Month in the rearview mirror, we’re now in the holiday season. If you’re looking to catch up on Financial Literacy Month, be sure to check out these helpful posts to learn more.
Financial literacy is one of the single most important things you can work on to help improve your financial future. As we head into the holidays, it’s important to keep your budget in check to make sure you start 2021 off on the right foot!
Financial literacy starts with a budget
Everyone should have a budget. However, building, and sticking to, a budget is often easier said than done. Budgeting can be as simple as tracking your income and expenses to understand what you should be buying and avoiding. The goal of budgeting is to have clarity on how much money you need to keep up your current lifestyle and what lifestyle changes you might need to make to reach your financial goals.
More seasonally appropriate, it’s important to decide on a holiday shopping (and spending) budget, and do your best to stick to it. A holiday budget will help prevent you from overspending on gifts for other people and remind you to think twice before pressing buy on that sale item online!
Now, before you build a budget, you should set some financial goals.
Have you set financial goals?
Setting financial goals gives you an objective way to measure your progress. Maybe you want to pay off your credit card, buy a new car, or purchase your first home. Good financial goals are a future state that is specific and easily measured. Vague goals are harder to measure, and much harder to achieve.
Committing to financial goals will help you build, and commit, to a budget!
You should build a budget around your financial goals
Budgets are unique, and what works best for you may not work for someone else. Getting started early will help you get ahead sooner. By starting with a holiday budget, you will build momentum to start the new year more financially savvy.
If you are a homeowner with debt, you may want to spend less this holiday season and pay down your higher-interest debt.
If you’re planning on buying a home in 2021, you will want to set yourself up for success by paying down debt and saving for your down payment.
Whatever your goals are, planning ahead helps you stay on track. Identifying your goals makes it easier to plan ahead, and will help to identify positive trade-offs that will make budgeting that much easier. If you’re looking for more information about creating a budget, be sure to check out this helpful blog post.
How can a mortgage broker help?
A mortgage broker can help both current and future homeowners and help you build your financial future.
For future homeowners, it’s important to speak to a mortgage broker as soon as you’re considering the possibility of buying a home. It’s good to plan early and a mortgage broker can help you understand your financial situation and help get pre-approved and prepare for your mortgage application.
For existing homeowners, a mortgage broker can help you too. With rates at all-time lows and real estate at all-time highs, homeowners may be able to refinance their mortgage to get ahead. You can refinance up to 80 per cent of the value of your home, and you may be able to use this to pay off higher-interest unsecured debt.
It’s always important to speak to an unbiased professional when looking for help with your financial situation!
Set your New Year (financial) resolutions!
2020 was a challenging year for all of us. If it showed us anything, it was that each of us can experience financial uncertainty at any time. By setting goals, building a budget (and sticking to it), you will create a buffer that will help you get through financial uncertainty and build your financial future. As we wrap up 2020, it’s a great time to sit down and plan your financial goals for the new year and focus on improving your financial literacy in 2021.
The Clinton Wilkins Mortgage Team hopes you stay safe this holiday season and get a chance to spend time with your loved ones, whether in person or virtually!
When looking for unbiased mortgage advice, contact Clinton Wilkins Mortgage Team or call 902-482-2770.