How to be Fiscally Responsible

Let’s be honest, the last time we had a budget surplus was at the time of Clinton’s presidency. Yet, we still talk about spending cuts, taxation, and anything else that may relate to the GDP and government spending.

It makes you wonder, how does it relate to us in our personal finance? Let’s see how we can be more fiscally responsible in our personal finances.

What is Being Fiscally Responsible Mean?

A fiscally responsible person would save for retirement, stay out of bad debt, and invest for the future. Oftentimes, we fall short. Either we get into debt, lack saving enough for our retirement, or even do not have enough insurance to help us keep our things safe.   Here are some 9 steps to make sure you are Fiscally Responsible.

1. Set Financial Goals:

Try to set up some goals for your finances. Think about when you would like to stop working and figure out how much money you may need. This can be as simple as figuring out your liquid net worth and making goals to hit. Maybe you need 6 figures to live or work on living stingy to help achieve your financial goals.

If you really want to be a fiscally responsible person you must know where your money is going. Tracking your spending is one way to create your budget. Take a month to see where your money is going. 

2. Creating a Liveable Budget

3. Know Your Net Worth:

Part of planning out your budget and goals is to know what your money situation looks like. Every month, I track my net worth to know where I am going. 

An emergency fund is enough cash to cover you for at least 3-6 months. I would rather have 6 months, but even having 3 months can really give you enough cushion to start investing and a little bit every month. 

4. You need an Emergency Fund

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