Happy New Year! If you’ve made financial resolutions to keep better track of your finances in 2009, then this is the year to “Just Do It.” The payoff is the start of financial independence. Here are four important steps to get you thriving:
1. Set goals, make plans. Perhaps no single financial act can provide a greater payoff than the act of planning for your financial future. Just taking the time to brainstorm your goals for the coming year— five years, ten years, and beyond—and what it will take financially to accomplish them, gets you halfway there.
If you already have a plan, now is the time to review it in light of any changes or anticipated changes to your personal circumstances: a new job or loss of an old one, a recent death or divorce, marriage plans or a new child.
2. Create a spending plan. Most people report that they need twice as much money as they have now to “live well.”[Time mag, 12/15/03/ page 66] While this may be so, many would feel and be better off financially if they spent their money more wisely. A plan can direct your money to the priorities in your life—not just the basics such as housing and food, but savings, paying down debt and, yes, the fun things.
3. Maintain an emergency fund. The combination of a spending plan and smart spending should free up money for a “rainy day” fund. It should have enough to see you through three to six months of living expenses, but even if you can’t do that, every bit helps in a financial crisis.
4. Review your investments. The goal of an investment portfolio is to produce optimal outcome over a specific period of time. However, due to the recent market ups and downs now may be a good time to re-evaluate your investment strategy. Also don’t overlook significant changes in your financial circumstances, such as retirement, an inheritance or a new job.
For more information contact Rebecca Robins, CPA/PFS, CFP®, CA Insurance Lic#0D75745. Securities offered through Associated Securities Corp. (ASC), member FINRA/SIPC. Advisory services offered through Associated Planners Investment Advisory, Inc (APIA), ASC, David S. Reinders, CFP®, Inc., Registered Investment Advisors. David S. Reinders, CFP®, Inc. is not affiliated with ASC or APIA.
The office is located at 25129 The Old Road, Suite 105 in Stevenson Ranch. For more information, please call 661-222-2331.