How Do You Prosper Financially

A jar filled with coins

Prosper. There’s not just one definition or path to reach it. Everyone has different views and goals for their life and finances and that’s OK! So for you, define what prospering should look like for your family. This is a great resource to help you do this! 

If you are wanting to prosper financially, First Kentucky can help you discover ways to do this! Though we have many resources, here’s a great place to start:

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PLAN FOR THE FUTURE

What do you want your future to look like? Dream a little. Then, pair that with what is realistic for your situation. That’s when you can start planning to reach those goals. The following steps explain a few ways to do this.

 

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REVIVE YOUR BUDGET

Looked at your budget recently? Think about the plan for your future. How does your plan fit into your budget? Now is the time to integrate the two.

  • Ensure you have accounted for all your bills before working extras into your budget.
  • Set up specific savings goals in your budget. Be clear what it is you’re saving for specifically.
  • Decide how much of each paycheck will go toward which savings goal.

 

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OMIT ACTIVITIES THAT DON’T MATCH GOALS

As you revive your budget and focus on your prosper goals, look at the activities that don’t line up. What can you omit from your lifestyle and budget? You may not realize how little activities, even if they’re just daily or weekly, can really hurt your monthly budget.

For example: Love going out to eat? It is good to get out of the house with your spouse or friends, but eating an expensive dinner, may put you behind on your goals. Instead, choose a cheaper option. Invite your friends to have a picnic with you or take your spouse out for a late-night dessert (and look for coupons before you do!).

 

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SPLURGE, BUT ONLY WITHIN YOUR MEANS

It’s OK to splurge occasionally! Think of this as your reward for taking steps to prosper.

  • Love eating that breakfast sandwich every morning but don’t have the budget for it? Omit it from your daily life but set a splurge date for yourself every month to go and have your favorite breakfast sandwich. The rest of the month find cheaper options for your breakfast.
  • Love going to the movies multiple times a month? Well, the weekend date night viewing may not fit the budget anymore. But, why not change date night to the cheapest night at your theater? Or change it to a day date so you can see the cheaper matinee showing. You might also look into deals that your theater or cell phone carrier may offer.
  • Love to take a vacation? You don’t have to deprive yourself, you just need to make sure it fits into your lifestyle and goals. So, this year you may only have enough money to go on a weeklong camping trip at LBL. Or, maybe instead of the weeklong beach trip you normally take, decide to take two long weekend trips throughout the year. This will give you two trips to look forward to and allow you time to save money for them.

 

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PREPARE FINANCIALLY FOR THE UNEXPECTED

If you haven’t already, start your emergency fund. You never know what could be around the corner, so ensure you’ve prepared financially for the unexpected. This could be a medical emergency, job loss, house fire, etc. Plan for the worst now so you won’t be financially stressed in the moment.

The general rule of thumb is to at least start with a $1,000 emergency fund, but ideally, have enough income set aside to live off of for at least 3-6 months. Obviously, this kind of saving won’t happen overnight. Make building this fund a top priority so you can have peace of mind later.

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EXPECT TO MAKE SACRIFICES

Sometimes to prosper takes making some sacrifices. This may be for just a limited time so you can reach the goals you’ve set. Don’t immediately say, “no” to sacrificing. Instead, decide a timeline for the sacrifice and be clear about the goal and reward at the end. Here are some ideas to think about.

 

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REVIEW YOUR GOALS AND BUDGET OFTEN

Just setting up a budget isn’t enough. You need to actually use it and monitor it. At the very least, review your budget monthly to ensure you’re staying on track. You want to ensure you’re living beneath your means and you’re keeping your savings goals.

If you’re married, go over the budget together monthly as well. It can be difficult to have money talks but remember, it’s all in love. You’re working together toward goals, so continue to work on keeping those at the forefront of your mind as you work toward meeting them. Here are some great lessons to learn together as a couple.

Set realistic goals for yourself and take these steps to ensure you are successful in reaching them! You can prosper and we’re here to help!