Inspiration – Fiscal Sis

Let’s Catch-up

fiscalsis — Tue, 17 Jan 2023 01:55:30 +0000

Here’s a brief chitchat to update you guys on what I’ve been up to and what’s been on my mind!

What’s Your Financial Freedom Wishlist?

fiscalsis — Tue, 05 Jan 2021 20:37:06 +0000

It’s the time of year again…you know, when we all reflect over the past 365 days and vehemently declare to never do those reckless things that we did, ever again.

The problem for many of us though is that no matter how good or noble our intentions are, the goals we aspire to achieve without a plan of action ultimately remain just fanciful and wishful thinking. And many times, otherwise attainable results like getting healthier, learning a new language or saving more money end up resurfacing year after year without having ever gained much traction.

WHY IS THAT?

A lot of times, we simply put the cart before the horse. Our grand and desired end-results make sense, but lack the practical detail needed to build upon. Because this is a finance blog, let’s look at that theory in terms of money goals. If this is the year of Financial Freedom for you, what does such an accomplishment actually look like?

The first step is actually assessing where you are. Before deciding to make 2021 the year of your power move, you have to know what you have and what you don’t. Make a list of the debt you’ve accumulated and add it all up. Then take a look at the money you’ve saved. These are the baseline numbers that are going to keep you honest throughout the process.

Next, you want to write down your financial goals. Don’t be arbitrary in determining what financial freedom means to you (because despite the rat-race that we all run, not all financial goals are created equally). For some, financial freedom means making in excess of what they spend. For others, it means having the flexibility to do whatever they want to do whenever they want to do it. Neither of these notions are wrong, but they aren’t necessarily one-size-fits-all objectives either. Specific targets may be to eliminate all student loan debt before age 30 or make at least $50K in passive income a year in order to retire early. No matter how ambitious the goals, document them!

You then want to affirm. Cite exactly how you are going to achieve the goal. Indicate steps like, “I will begin saving $15K for a home down payment by not eating out for the next year,” or “I will cancel my premium cable subscription and allocate those funds to my savings account.”

Once you are clear about what you want and what you have to do to get it, then start tracking (this is of course, a nuanced word for budgeting :-)). Record all of your income and from it, begin deducting your expenses. Because you’ve outlined in your affirmations all the things you are willing to do to reach your financial goals, your expenses should look less like a spending free-for-all, and more like the payments for necessities and the costs for essential items only. Subsequently, the net amount of your income less your expenses is what you’ll have left. And having something left is one of the most important steps in reaching your ultimate goal(s).

Sure, in fairness, financial experts always make activities like investing, saving and debt reduction sound straightforward and easy to achieve, especially to those who may be marred in debt and feel like there is no way out. But the truth is, these practices aren’t just money management exercises, but ways to realign mindsets. Once a person becomes disciplined enough to stick to a budget, they are more likely to see the necessary financial transformations that they could previously only dream about. So don’t be afraid to plan, vision and goal set around your money this year. Just also remember that no successful results will come to fruition without a clear objective, deliberate strategy and actionable steps.

What changes have you implemented that have positively impacted your financial trajectory? How are you moving closer to reaching your goal of financial freedom in 2021?

Mental Health is Financial Health

fiscalsis — Sun, 23 Jun 2019 05:52:50 +0000

It’s true. Identifying and addressing the emotional triggers that can sabotage your spending plans and financial outlook is a great way to be and to remain solvent.

Interestingly enough, the key to resolving these pitfalls could be as easy as deciding to change your working environment after years of stagnation or lack of occupational mobility.

What are some things that are holding you hostage financially and/or mentally. What are you doing to combat them?

Your Credit: Mastering The Mystery

fiscalsis — Sun, 09 Dec 2018 23:43:43 +0000

While millions of consumers have a general anxiety or respond in a reactionary manner when considering their personal credit, there are definitely tips and tools to ensure that good credit is not some mysterious force, but an attainable financial tool. Listed below are a few pointers to incorporate into your own positive financial relationship with credit.

Understand the importance of you FICO Score: A FICO Score is a credit scoring metric that lenders use to assess a consumer’s credit worthiness and risk. The measurable components of a FICO Score include payment history, debt load, credit history, credit mix and new credit. Each category accounts for a percentage of the consumer’s total FICO calculation.
Pay your bills on time: Setting up payment reminders and opting for automatic draft payments from your banking institution will ensure that you don’t miss a payment. Paying your bills timely and responsibly not only impact your credit score positively, but accounts for roughly 35% of your credit worthiness in the eyes of potential lenders.
Reduce your debt load: Carrying too much debt may reflect as irresponsible or as living outside of your current means in the eyes of lenders. One way to get your debt under control is to pull your credit report and make a concerted effort toward paying down the active debt listed there.
It’s never too late to get current: Despite your previous delinquency history, getting back in the rhythm of making timely, if not consolidated and/or reduced payments will assist greatly in establishing a consistent payment history and a good illustration of credit responsibility.
Manage your revolving debt: If you apply for credit, max out your credit cards, stop using credit (entirely), or miss monthly credit payments, your credit score will go down. Because extended credit is simply borrowed money (with interest), you are ultimately required to repay what you owe. Not doing so could lead to late fees, default or the risk of legal action being taken against you. While it is always my recommendation to make more than the minimum monthly payment on your revolving debt accounts (to avoid prolonged and accruing interest), it is very important that you pay at least what is due each billing cycle.

While practical in concept, the application of these recommendations will go a long way toward increasing and solidifying a robust FICO Score and financial future.