- Author Jean Chatzky shares important steps that anyone can implement to build financial security.
- There are multiple tools that help savers create a budget and track their spending.
- Maintaining a budget and building savings will help people build a better relationship with money.
While each person’s road map to a free and clear financial future looks different, there are some key themes that will benefit anyone on the path towards financial freedom. And one expert, Jean Chatzky, the CEO of HerMoney Media and host of the “HerMoney” podcast, spoke with Insider about some of the bigger picture themes that will help guide people from all financial backgrounds towards the path to success.
The goal, Chatzkzy explains, is to give the latest on budgeting and financial planning to improve our relationships with money over time. It’s changing our behavior and the relationship we have with money and — what it means to our present and future — that can act as the catalyst for setting bigger, concrete goals for financial independence, whether that’s paying off major debts like student loans or medical bills, seeking a future with a higher quality of life, or retiring early.
There are certain money basics that, if followed, will set the foundation — and even guard rails — for building financial stability, Chatzky says, and explains four of the most crucial themes for financial freedom.
There is a reason why a comprehensive budget is the first step in a financial plan.
Getting your finances in order doesn’t have to be a daunting task, Chatzky says, but it is a necessary first step. Planning and setting a budget helps savers track spending, prepare for emergencies, get out of debt, and chart their financial progress. The latter themes are not all necessarily co-dependent, but a comprehensive budget is the crucial building block to preventing any undo setbacks from one’s path towards financial freedom.
The only way to create a budget that works is knowing how you are spending your money and keeping track of what your money is doing for you.
“Knowing where your money is going is the only way to build a realistic financial life,” Chatzky says. “When you create a budget and know where your money is going and if you are funneling the right amount of money into savings, then you actually have more freedom in deciding what to do with the rest,” explains Chatzky.
Tracking a budget can be done with a mobile app like Mint.com while some major banks also offer budget tracking tools through their online banking services.
While making a budget and sticking to it can seem restricting and limiting to …….