Oklahoma Money Matters

A new school year, for both parents and students, offers an opportunity to reflect on where you've been and to make plans for your future goals. By identifying that you don't know where to start and seeking help, you've already made progress in improving the situation. Consider these steps to get you closer to your financial goals this year.

• Evaluate where you are before you do any spending: I know it’s tempting to participate in all the back-to-school shopping sales, but are you really getting a bargain if you’re further in debt after the purchase? If an unexpected expense occurs during the school year, will you have the money to cover it? That $200 you were going to spend on the latest fashion could be a great start to a savings account.
• Decide where you want to be: Take a moment to visualize where you want to be at the end of this year. What does that look like? Are you completely debt-free? Do you have a healthy emergency fund? Sticking to your budget, even when facing temptations, is crucial for achieving your long-term financial objectives through delayed gratification.
• Create a spending plan and review it regularly: Budgeting the money you have is the most important key to financial success. The amount of money doesn’t matter if you don’t have a plan in place to manage what you have. To learn how to create a spending plan, check out our budgeting resources at OklahomaMoneyMatters.org.
• Establish an emergency fund: The unexpected happens — a car accident, a sick child, an unplanned home repair — and it can derail your financial goals FAST. If possible, it’s best to save three to six months of necessary living expenses in your emergency fund. In the meantime, however, aim to save at least $1,000 to cover minor bills and repairs. Put your money somewhere easily accessible, like an interest-bearing savings account or money market account.
• Pay off debt: Your money can't work for you if it's earning interest for someone else. That's why it's important to pay off debts as quickly as possible. Tricks like living off the “Noodle Budget” (only spending money on the bare minimum) can aid in paying debts quickly.
• Prioritize financial wellness: When creating new financial habits that bring you closer to your goals, your money mindset is as important as your goals and plans. Give yourself some grace for any mistakes you've made in the past and work toward actively changing the bad habits and beliefs that keep you stuck.
• Save and invest for the future: The key to long-term financial success is to make your money work for you. Consider talking to a certified financial planner to help you access your future needs and create a plan to help you succeed. For more information to help you reach your financial goals, check out the resources on OklahomaMoneyMatters.org.