| 1. Budget conservatively. Even you hate the "B" | | | | successful financial planning is to pay yourself first. |
| word, it is important to apply a budget to your | | | | With every paycheck, divert ten percent of your |
| household finances. Creating a conservative | | | | pre-tax funds to a savings or money market |
| financial plan that allows for a sufficient savings | | | | account. This is the way to ensure you are |
| cushion, expense allowance, and a bit of spending | | | | building financial security automatically - don't make |
| money will create a foundation that stands up to | | | | it a secondary action. |
| emergencies. | | | | 7. Participate in employer's 401K programs. Joining |
| 2. Find ways to increase your income. Increasing | | | | your company's 401K program is like getting free |
| your income stream helps to augment your | | | | money! Most employer match employee |
| monthly budget. Think about starting a part-time | | | | contributions, and the money can be diversified |
| job or a small business to earn extra cash. If you | | | | into safe, long-term earnings vehicles. You can |
| cannot trade time for money, consider renting out | | | | also borrow against your 401K savings in the |
| a room or look through old items to sell on eBay. | | | | event of an emergency. |
| 3. Explore ways to decrease your expenses. | | | | 8. Don't buy too much house. The first rule of |
| Cutting your expenses is critical to stretching your | | | | purchasing a home is to buy smart. The easiest |
| funds. Try telecommuting 2-3 days per week, | | | | way to derail your financial future is to buy more |
| using public transportation, or carpooling to save | | | | house than you can afford - trying to keep up |
| gas money. In fact, have you considered selling | | | | with the payments while juggling additional financial |
| your car outright or downsizing your automobile | | | | responsibilities is a losing battle. Purchase a |
| to save cash? | | | | property where the total monthly expense equals |
| 4. Watch your credit card debt. Credit card debt | | | | less than 40% of your income. |
| is crippling the American homeowner with each | | | | 9. Keep your "house" in order. Emergencies can |
| minimum monthly payment. Minimize the amount | | | | make you feel scattered. Take a proactive |
| of purchases you make on credit and increase | | | | stance against unseen occurrences by keeping all |
| your cash purchases. Move towards a plan where | | | | your paperwork in order and easily accessible. |
| you keep one card for emergencies only, and limit | | | | Organization can help maintain calm, so set aside a |
| the spending to thirty percent of the credit limit. | | | | special area in your home to keep your financial |
| 5. Opt for a Fixed Rate over an Adjustable Rate | | | | documents and maintain those files on a monthly |
| mortgage. A fixed rate mortgage allows you to | | | | basis. |
| plan for the long term. If you are just beginning to | | | | 10. Falling behind on payments? Act early. If you |
| budget, having your house payments remain the | | | | find yourself in a financial bind, act early to |
| same over the long term increases the probability | | | | prevent foreclosure. Reach out to certified |
| of remaining on track. If you have an adjustable | | | | housing counselors for advice, explore multiple |
| rate mortgage, ensure that you project early and | | | | options for making up past due payments, and |
| accordingly for the financial adjustment. | | | | look to employee assistance programs for |
| 6. Save 10% of your income. The key to | | | | recommendations and guidance. |