Tackling financial obstacles
Tuesday, 8 June 2021
Accomplishing financial goals can sometimes feel a little like a rivalry football game: Just when you think you’re moving down the field, life intercepts the ball.
Maybe it’s an unforeseen expense of a new furnace. Or the unexpected opportunity to start your own business. Or the realization that you need a bigger home to accommodate a growing family. If your team has the right financial tools, you can build a winning game plan.
To do that, here are some resources for your playbook:
- A realistic budget. Good budgeting skills can make tackling financial obstacles a lot easier. Set aside some time to think about why you need a budget and what your want to accomplish before you look at the numbers and set up goals.
- A debt reduction plan. Carrying credit card debt can slow down your progress toward achieving your goals. Having a strategy to eliminate your debt will improve your game.
- An emergency fund. Having an emergency fund is like having a strong defensive line. Life is full of surprises, and while you can’t plan for everything, it helps to have to a cushion when the unexpected happens.
- A smart savings and investment plan. Saving and investing even a small amount early on can pay off in big ways later in the game. The biggest advantage of investing sooner rather than later? Compounding returns, or making money off your money.
- A digital toolkit. More than half of Americans with bank accounts and smartphones use their phones for mobile banking, according to a 2016 Federal Reserve Board report. If you aren’t among those taking advantage of apps and tools for banking on the go, it may be time to discover the benefits of features like mobile alerts that let you know when your account balance drops below a certain threshold. If you are already using your phone to check balances and transfer money between accounts, step up your game by adding a wallet feature to manage your credit and debit cards and pay bills.
The key to tackling financial obstacles is making sure your game plan will carry you through all four quarters.
The content provided is for informational purposes only. Neither BBVA USA, nor any of its affiliates, is providing legal, tax, or investment advice. You should consult your legal, tax, or financial consultant about your personal situation. Opinions expressed are those of the author(s) and do not necessarily represent the opinions of BBVA USA or any of its affiliates.
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