5 Tips for Planning Your Finances
By Solid Serenity Legal Solutions
One of the hardest things about being an adult is managing your finances. From budgeting, investing, and taxes to estate planning, insurance decisions, and mortgages, financial concerns become more and more complex as we age.
Nearly 73 % of Americans admitted in a recent poll by Capital One that money is their biggest stressor. That’s almost twice as many people than those who answered work or family.
Though putting off or trying to ignore financial concerns is the norm, it is important to face financial matters head on. Here are 5 tips to help you face your finances and aid you in planning your finances.
(1) Know Your Limitations
Think about your strengths and weaknesses in money management. Make sure you know what you don’t know. Then, sit down with a financial advisor or planner who is strong where you are weak and put together a plan for your finances.
(2) Make Family Goals
When it comes to financial planning, it has to be a family affair. If you have a partner in your life, talk to them about your plans and set out your goals together. If you have plans for your children, talk to them and get their insights on what they would or would not want as well. Taking the time to have the conversations can help you make more concrete goals for your financial future.
(3) Address Your Greatest Concerns First
Think about your goals for yourself and your family. What are some of your greatest fears? Or, what are some of your greatest dreams? Do you worry about disability or death? Do you worry about your children? Do you worry about your pets?
Make your greatest concerns and dreams the most important focal point of your plan.
(4) Check Your Budget
You need to know what is coming in and what is being spent for your family. Even if you find basic percentages, make sure you have an idea of where your money is coming from and where it’s going. Adjust your spending habits, if necessary, so that you have more disposable income for your dreams and plans.
(5) Figure Out the Costs of Your Goals
Take a pad and pen and write down the costs of your biggest goals. Then, figure out how much disposable income you can put towards those dreams each month. Finally, automate the process as much as you can, such as making an automatic draft each month in your bank’s bill payment system to go toward your dreams.
Once you have your goals in place, you will need to plan to protect them. Find out more about estate planning here.
Call us today to help you start your plans.