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Tips for Your Financial Health

stacks of coins with small plants sprouting out of them

Because it’s the beginning of a new year, we suspect that many members of our apartment community have their minds turned toward renewed resolutions. If you’re hoping to gain a better hold of your financial health this year, then this post is for you. Today, Cavalier Court Blog is sharing some basic financial tips with you that you can start practicing right away. While there are plenty of steps you can take beyond these, we’re giving you the first three tips toward a financially abundant future from SmartDollar. Start practicing them in your Fairfax, VA apartment today!

Start Budgeting

The first step toward financial stability is getting on a budget if you haven’t yet! There is enough material to write hundreds of blog posts on this topic alone, but that’s not our what our goal is today. Simply put, budgeting requires that you know how much of your income is spendable each month, that you track how you typically spend that income, that you have goals in terms of where your money will go each month ranked from most important need to simplest want, and that you are ready to make adjust when necessary. For more specific budgeting tips, a simple google search will provide you with plenty of options and methods to choose from.

Build an Emergency Savings

You might be deliberately saving money every month for a new car or an upcoming expense that you’re anticipating, but it’s vital to build an emergency savings for unexpected expenses as well. SmartDollar suggests that your base emergency savings fund should be $1,000 so that any unanticipated trip to the doctor or car repair won’t send you deep into debt. Even if it will take you a few months to accumulate $1,000, you’ll be glad that you did it next time you truly need that money. Remember to refill your fund whenever you use some of it!

Pay Off Your Debt

It’s likely that, between car payments, student loans, and credit cards, you have multiple sources of consumer debt. After getting on a budget and building a base emergency savings, the next big step is to pay all of that debt off. SmartDollar proposes writing down of your debts from most to least expensive, and then paying the minimum payment each month on each of those debts. If you have money leftover that you’d like to use to reduce debt, then put it towards paying off your smallest debt first. Using this debt snowball calculator will help you see how it works. This process may feel counterintuitive, but it works! Paying off any debt you have in full will make your load that much lighter, no matter how small. Repeat this process until all of your debts are completely gone!

Thanks for reading! May your 2019 be a year of success and financial stability.