If you want your car to remain in excellent condition, you have to follow a specific maintenance schedule to keep it running smoothly. Oil changes, fluid flushes, and belt replacements can get expensive over time, but they’ll help you avoid even costlier repairs that arise from complacency and neglect.
Much like your car, creating your financial plan should include a maintenance schedule to help you stay on top of your money management and reach your financial goals sooner.
Having a set of tasks you do at specific times throughout the year may sound like more work. But it’s actually saved me time because I always know what’s going on. I don’t have to spend much time with each task and the peace of mind is worth the work.
Your money maintenance schedule for 2018
As you follow this money maintenance schedule, you’ll be able to better track where your money is coming from and where it’s going. You’ll also improve your chances of becoming more financially secure over time.
Track your spending: If you don’t know where your money is going, you’ll have a hard time controlling your financial future. You don’t necessarily need to log in to each of your online credit card and bank accounts every day, but you should consider using budgeting software that imports your transactions from all your accounts into one place.
Some budgeting applications also offer other features such as spending by category, budget maximums, and monthly reports to help make the process easier.
Check in on your cash budget: If you strictly use cash for your budgeting, it’s important to do a daily check to see how much you have left in your wallet. If you run out early, it might be a sign that you’re overspending or not getting enough cash from the bank each week.
Update your budget: Besides keeping track of where you spend your money, you’ll also want to categorize your purchases based on your monthly budget. This can get tricky if you buy items in multiple categories in the same purchase, but it shouldn’t take too long to categorize purchases once you get the hang of it.
This is also a good opportunity to determine whether you need to adjust your budget to include necessary expenses for which you didn’t previously plan.
Review your spending: Once you’ve updated your budget, review your spending to make sure you’re on track with your monthly plans. For example, if your grocery budget is $500 and you’ve already spent $400 halfway through the month, you’ll want to cut back the rest of the month to avoid going over budget.
Create a meal plan: One way to save money on food is to create a weekly meal plan. That way you don’t end up throwing out stuff that goes bad because you never had a plan for it. And by planning in advance, you can try out new recipes rather than just getting the same ingredients over and over again.
Get cash for the next week: If you use cash for some or all of your spending, visit the bank and get all the cash you need for the coming week. This will be especially helpful if you use the cash envelope budgeting system.
Create your monthly budget: Your budget is the most basic financial planning tool you have, and it’s also one of the most effective. Each month you should evaluate the previous month’s budget to see how you did.
For example, know where you overspent or came in under budget. Look for surprise expenses that you didn’t plan for and try to improve your forecasting. Then create one for the upcoming month.
Make tweaks as needed to keep yourself motivated but also to prioritize your financial goals. To do this:
- Write down each goal.
- Organize your goals in order of importance and urgency.
- If you have a partner, make sure your goals and priorities align.
Also, if you notice that you regularly go over your budget on a category, it could also be that you’re underestimating how much you need.
Evaluate your debt payoff strategy: If you’re working on paying down debt, double-check every month to make sure you’re still on track. For example, are you putting enough toward your debt each month? Can you make more room in your budget to add more extra payments toward your debt?
If you have credit cards, consider whether it’s a good idea to consolidate your credit card debt to lower your interest charges.
Revisualize: It’s important to remind yourself why you’re doing all these things. Create a vision for your financial plan and why you want to meet the goals you’ve set. How you do this is up to you.
You can create a vision board, fill out a Google Doc, or write it on a piece of paper. The important thing is that you put it in a place where you’ll see it every day. Then, take time to revisualize that motivation to keep you from losing focus.
Check your credit score: Your credit score typically gets updated once a month as creditors report your account information to the major credit bureaus.
You can check your credit score through free online credit monitoring services such as Credit Karma and Discover Credit Scorecard. If you notice your score dropping, note what’s causing the decline and work on improving it. Keep in mind that Credit Karma and some other credit monitoring services don’t provide you with a FICO credit score, which is what most major lenders use.
But the calculations these scoring models use is similar to FICO’s, so you’ll still get a good ballpark figure.
Check your investment account statements: If you have a 401(k), individual retirement account (IRA), or any other type of investment account, check your quarterly statement to see how your investments are doing. Check the portfolio’s return over the previous quarter and determine whether you want to make any changes.
If you have a financial adviser, consult with them about ways to improve your investment strategy. Keeping an eye on how your portfolio is doing can help you determine if you’re on track with your goals.
Check your credit report: You can get a free copy of your credit report from each of the three credit bureaus every year through AnnualCreditReport.com.
Checking your credit report can help you determine if there are any errors or if someone has fraudulently opened accounts in your name. You’ll also be able to see if you have any delinquent accounts or any other issues you need to address.
Calculate your net worth: Your net worth is calculated by subtracting your liabilities from your assets. This number is a snapshot of your current financial health. It can be a wake-up call or a sign that you’re making good progress with your goals. Consider using a net worth calculator to make the process easier.
Do your taxes: Roughly three-quarters of the people who filed individual tax returns in 2017 got a tax refund, according to data from the IRS, and the average refund was $2,782. So, even though doing your taxes feels like an unnecessary evil, it can be well worth the time and stress.
Before you get your refund, decide what to do with it. Some smart ideas include:
- Adding to your emergency fund
- Investing in an IRA
- Paying off debt
- Saving for some other financial goal
Tweak your tax withholding: If you got a big tax refund, you essentially gave the government an interest-free loan. That can be a good thing if you treat it as a kind of forced savings program. But if you’d rather get bigger paychecks throughout the year, ask your payroll manager to help you change your withholding allowances so that the government withholds less money in taxes.
Set annual financial goals: Take some time each year to decide what you want to do financially in the next 12 months. It can be anything you want, but some examples include:
- Maxing out your IRA
- Paying off a credit card or other debt
- Hitting a savings goal in your emergency fund
- Saving enough for a family vacation
- Saving enough to afford a large purchase
Shop around for car insurance: According to CarInsurance.com, you could save thousands of dollars per year just by comparing car insurance. Car insurance companies are constantly changing how they determine risk, which could mean that you’re paying more than you need to be. Take an hour or so to compare your current rate with quotes from a few other insurers to see if you’re still getting the cheapest car insurance rate possible.
Negotiate lower monthly bills: While phone and internet companies sometimes increase monthly bills for their customers, your provider might be willing to lower yours if you ask. One way to get leverage is to research competitors and find ones that offer lower prices.
You can also try this with your credit card. Some credit card issuers might be willing to lower your APR or give you some other kind of retention offer to keep you happy.
Sell off unused items: Before my wife and I moved into our house last September, we had a lot of stuff that had been collecting dust in our condo. Instead of adding everything to the moving boxes with all our essentials, we took a moment to decide what we actually needed to keep.
We created two piles: a “keep” pile and a “sell” pile. When we were done dividing the items, we put everything from the “sell” pile on Craigslist. We didn’t sell everything, but the stuff we did netted us about $200.
If you haven’t used something in the past year, it’s likely that you don’t need it. Consider selling it on Craigslist or a local online marketplace to get some extra cash to pay down debt or save for the future.
Slow and steady wins the race
While a car maintenance schedule can help keep your car from breaking down often, the fact is that the value of your car still goes down over time. The value of your financial plan, on the other hand, can grow over time as you follow these maintenance tips.
Barring any big increases in your income, it will take time to establish a solid foundation and make significant improvements in your net worth. But as you hold yourself to your goals and vision, you’ll get where you want to be before you know it.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 6.97% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.30% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.47% – 6.30%1||Undergrad & Graduate|
|2.51% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.69% – 7.21%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|