Prepare for Your Financial Future in 15 Minutes (or Less) a Day

If you're intimidated by the idea of preparing for your financial future, don't be. Here's how you can take control in just minutes a day. 

Time is valuable, no matter how you look at it. Feeling pulled in several directions sometimes means not finding time for the things you need to do to prepare for the future.  

The Ascent looked into how much time people spend on financial planning and found that, on average, Americans spend less than two minutes a day managing their household finances. About 48% of us say we want to be financially prepared for the future, but 97% of us aren't making the time.

If taking control of your financial future feels daunting, you may be overthinking it. We have some simple steps to get you started and then some quick and simple ways to stay on top of it all.

A woman writing out a to-do list at a desk next to a laptop and cup of coffee.

Image source: Getty Images

Getting started

There is no single recipe for laying a financial foundation, although there are basic steps that will make anyone's life easier. For example, it's worth creating a budget that allows you to quickly see what has been paid and what needs paying, as well as coming up with an achievable plan to pay off debt. Set some savings goals so that you know how much you need to put aside for your kids' education, retirement or your next vacation. Work out how much you should be saving each month and if you don't have an emergency fund, factor that into your savings plan too.

You can also simplify your financial life by signing up for automatic deposit if your employer offers it, automating as many payments as possible (including rent, mortgage, utilities, and student loans), checking once a year to make sure you're still on the best health plan available, and contributing to your company's retirement plan.

Keep on top of your finances

Once you've got your bases covered, you need to put in a bit of time each day and each week to keep things ticking over. Here's a checklist of regular financial housekeeping tasks that will keep your finances under control and allow you to achieve your financial goals.

 

Keep things ticking over

As long as you know how much is coming in and going out and are doing the following, you have the majority of bases covered:

  • Paying off debt
  • Working towards your savings goals
  • Putting money away for emergencies and retirement

After that, it takes minimal effort to keep on top of your finances, and then you can even move on to more detailed planning. But to paraphrase Scarlett O'Hara: You can think about it tomorrow. Today, just focus on staying on top of the little things.

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The Motley Fool owns and recommends MasterCard and Visa, and recommends American Express. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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