Money Success Checklist
Use this checklist to guide you toward financial freedom and peace of mind. When you’re ready to tackle the next item on the list, click LEARN MORE> below to review our modules for guidance on achieving each successfully.
1. Set Financial Goals
__ Set short-term (1-2 years) financial goals such as starting an emergency fund, paying off credit card debt, and saving for a vacation
__ Set medium-term (3-9 years) goals for buying a car, paying off student loans, and saving for the down payment on a home
__ Set long-term goals (10+ years) for buying a home and saving for retirement
2. Identify Your Money Personality
Your Money Personality refers to how you think, feel, and behave toward money. It reflects how you manage, spend, save, and invest your finances. And it influences your financial decisions, goals, and relationship with wealth, shaped by factors like upbringing, values, and life experiences. Understanding your Money Personality can help you make more informed decisions and improve financial habits. Follow the link below to identify your Money Personality.
3. Create a Spending Plan
__ Track your income and expenses every month
__ Categorize your expenses into wants and needs
__ Apply the 20-50-30 Rule to your spending and saving
__ Set up a Pay Yourself First plan by automatically moving money from your checking account to savings as soon as you receive your paycheck
__ Use Conscious Spending and identify your high-priority expenses
__ Identify your low-priority expenses and cut them “brutally”
4. Build an Emergency Fund
__ Start with a goal to save $1,000 in your emergency fund
__ Make a plan to save 3 to 6 months of living expenses
__ Keep your emergency fund in a high-yield savings or other high-interest account
5. Manage and Improve Your Credit Score
__ Check your credit reports every 6 months and report errors to the reporting agency (Equifax, TransUnion, or Experian) showing the error
__ Pay your credit card and other loans on time every month by making automated payments
__ Keep your credit utilization low by using less than 30% of your available credit limit
6. Reduce and Manage Debt
__ Create a list of all your debts and note how much you owe and the interest rate on each
__ Create a spending plan each month so you won’t overspend on credit cards
__ Use either the Snowball or Avalanche Method to pay down and eliminate your debts
__ Plan to pay off the entire balance on your credit cards each month
7. Start Saving for Retirement
__ Ask your employer about their retirement savings plans. Learn what your options are and how to maximize your savings.
__ Contribute up to the amount that is matched by your employer, then put other retirement savings in a Roth IRA
__ Automate your contributions to the Roth IRA and set a goal to contribute the maximum amount each year
___ Choose a diversified set of investments that are in line with your time horizon and risk tolerance
8. Maintain Insurance Coverage
__ Check with your employer about options for your health insurance to make sure you have adequate coverage for your needs
__ Review your insurance policies (auto, renters/homeowners, liability) annually to make sure you have the right coverage at the best possible price.
9. Invest in Your Financial Education
__ Read books and articles regularly on personal finance to continually educate yourself
__ Consider online courses or workshops on financial planning and investing
__ Contact us at Money Academy for personal guidance on your financial life
10. Regularly Review and Adjust Your Financial Plan
__ Check your spending plan monthly to stay on track
__ Once each year reassess your financial goals and adjust your plan based on changes in income, expenses, and life circumstances
___ Once each year calculate your net worth as a way to measure progress toward your long-term goals
11. Build a Professional Network
__ Connect with peers in your field and build relationships to further your career
__ Find mentors who can offer financial and career advice