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A Resolution You Can't Afford to Ignore
Happy New Year! Turning the calendar to January is a good thing. For some of us it is a fresh start; forgetting what was the year before. For others it is an exciting time of year, full of hope and opportunity for the year ahead. Most of us at one time have made New Year's Resolutions. Each January 1st about 100 million Americans vow a new start regarding something in their life. The usual suspects top the list each year; lose weight, quit smoking, save money, and spend more time with family. Unfortunately, 4 out of 5... 80% of resolutions are ditched and usually done so within the first few weeks.
You Must Do This...
I specifically waited until later in the month to send out this plea for you to consider. I figure that many have already abandoned their resolutions and it was a great time to challenge you with the real one. The one you can't afford to not do. It is a good resolution at any time of the year, one that will bless you, your family and likely your grandkids for future years to come.
TAKE CONTROL OF YOUR FINANCES.
Take control of your past, present and future finances. This is the year. You can't wait until next year, or "when I get that raise," "once the kids are..." or "when we payoff that debt." No one will do it for you. It takes effort, commitment and a plan. But I promise you; taking control of your finances will be one of the best things you ever did.
A Resolution you can't afford to ignore-
Take Control of Your Finances.
Get Organized
Create a master list of all of your investments, bank statements, insurance policies, loans, names of key professionals in your life, etc. Have a binder to collect the paperwork as it rolls in. Make sure it is kept in a safe, fireproof place (you will also want to consider a protected electronic copy). Communicate to your children and/or executor of your estate where it is kept.
Establish an Emergency Fund
This is a necessary foundation of your plan. You need to have 3 to 6 months of living expenses available in case you should need it. Click here to read about Emergency funds
Live Below Your Means
Forget the "Joneses" down the street. Comparisons with others are not helpful and usually not accurate. Many affluent-appearing lifestyles are riddled with debt. Create and track a budget. This will give you the "guardrails" to confidently know what you can afford and reveal to you the opportunities you can consider. Click here to read about a Budget
Set Goals
Once you are organized, have money set aside for a rainy day and are using a budget you can set appropriate and measurable goals. You can now identify them and track your progress. Focus on why they are important versus the how- personalizing them will increase your motivation. Talk with your spouse. Communication is so vital and agreement on common goals is essential to accomplish what is important to you both.
Reduce and Eliminate Debt
This is especially true of high-interest debt, which typically is credit cards. Carry $0 balance on cards and pay with cash when possible. This will help your credit score and your overall savings to debt ratio. Don't tempt yourself with email or twitter sales alerts from your favorite retailers- unsubscribe from them.
Protect your Privacy
Regularly review your credit report and monthly your credit card statements for identity theft. Change your passwords often and don't make them easy-to-guess. Be watchful for "phishing" schemes to get you to provide your personal (especially your social security number, account numbers, etc) information via online, email or over the phone. If in doubt, you should contact through known phone numbers to verify the request.
Review your Insurance
An annual checkup for proper coverage is wise to protect your assets and family if something should happen. Do you own a business or have a family? An umbrella policy is a good consideration to add extra protection along with your home and auto insurance. Unfortunately, most people are under-insured. Click here to read more about the necessity of life insurance
Create an Estate Plan
At the minimum, you need to have a will. This will avoid your assets going through court probate and also make assets available immediately to your beneficiaries. Especially, a will is a necessity if you have children, so you can appoint the desired guardian.
Get Savvy, Educate Yourself
No one will take control of your money better than you. The world of finances can be intimidating and you may not ever be an expert but with some reading and basic education you can have the knowledge you need to make empowered decisions. Read, ask and then talk to a true highly educated professional.
Enjoy Life
Even though you may agree on the importance of taking control of your finances, I realize the process will not likely top your 100 favorite things to do. But trust me, it is worth it! It will provide you with knowledge which leads to confidence, less worry and the ability to make sound educated choices. All that we have is given to us to be stewards over. It is all resources, yes to manage and save, but also to enjoy. Once you get these items inline and are on the right track- reward yourself. Go out to dinner to celebrate your keeping this resolution, take that trip you have been planning towards or whatever you find fun! (But only as long as you can afford... of course I would remind you)
Give Generously
This may sound against the save and keep track of you finance strategy. It is shown however that you will have better health and discipline in your budget and savings if you seek to be generous with your money, time and talents. Give to your church or favorite charity, donate your time and use your skills to help others. This helps us all have a good perspective of life.
Talk to a Professional
I am currently accepting new clients, so as you have questions and need further assistance, I would be glad to casually discuss how my firm and I can assist you and your family.
I wish you and yours the absolute best and a blessed 2013!
To Your Financial Freedom,
Luke Fields, CFP®
Any information is not complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Luke Fields and not necessarily those of RJFS or Raymond James.
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About Stewardship CentsStewardship Cents exists to Educate, Entertain and Enhance the financial wisdom of all who read it. Everyone needs to be wise with what has been entrusted to them and common sense can help us be good stewards of all that we have. Stewardship is a belief of responsible overseeing and protecting of important resources. Luke Fields is Vice President of Foley & Foley Wealth Strategies, An Independent Firm, that has been based in Worthington, Ohio since 1981. A graduate from The Max M. Fisher College of Business at The Ohio State University, Luke is a CERTIFIED FINANCIAL PLANNER™, holding his Series 7, 66 and Ohio Life, Health and Variable Annuity Insurance licenses. He resides in Columbus, OH with his high school sweetheart, Beth and their three children. Luke is an active member of his church, serving in leadership and finances.Follow additional insights and connect on LinkedIn, Facebook, his blog or Twitter. You can always reach him with comments or questions at: luke.fields@raymondjames.com.Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC
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