A strong financial foundation is something most people strive for to avoid financial stress. Not only can a strong financial foundation provide you with peace of mind, but a strong financial foundation may also help you achieve your financial goals. Find out how you can start building a strong financial foundation today. You can also talk to a Chattanooga bankruptcy attorney to explore ways to start this process.
What Makes a Strong Financial Foundation?
You might be wondering what a strong financial foundation is. One way to understand this is by looking at what financial wellness is. Financial wellness is generally defined as being able to afford all your expenses while being able to achieve your long-term financial goals over time with few difficulties.
In some sense, a strong financial foundation is similar to financial wellness in terms of the common strategies used to achieve them. These common strategies that lead to financial wellness include:
Paying off debt
Building good credit
Having an emergency fund
Investing and saving
Budgeting might be one of the most important steps to building a strong financial foundation. Without budgeting, many people are unable to save money, overcome emergency expenses, or achieve their long-term financial goals. Having too much debt and no emergency savings plan can lead to similar problems.
How to Build a Strong Financial Foundation
A lawyer with experience in finances can help you start taking steps to build your strong financial foundation. One of these steps involves creating a budget plan to start taking control of your finances. Many people overcomplicate the idea of creating a budget, but this process does not have to be that stressful.
Creating a budget plan is as simple as subtracting your monthly expenses from your monthly income. There are a variety of apps and computer programs that can do this for you. All you have to do is input the numbers each month. This will help you figure out what monthly spending you can cut to help you save more money each month.
You can use your budget to save more money, pay off debt faster, invest, or build an emergency fund over time. Many people think budgeting means no more fun spending. However, there are a variety of templates you can use for how you decide to spend your money.
The 50/20/30 spending rule can help you save money and still buy what you want but at a steady pace. This rule says to spend 50% of your income on necessary expenses, 20% on savings and debt, and the last 30% on what you want. You can test out different percentages of where you want to put your money to find the right balance for you.
Call Tom Bible Law Today
Facing financial setbacks can be discouraging but you do not have to give up. Do not hesitate to contact us at Tom Bible Law today at (423) 424-3116 for a consultation about your financial options. Our experienced team of Tennessee bankruptcy lawyers is ready to help you explore legal options related to bankruptcy. We serve clients in the Tennessee cities of Chattanooga and Tullahoma.