How to Approach Money Management

The average U.S. consumer is inundated with financial information and tools as they prepare for their financial future. An Internet search of the words “financial planning” generates millions of hits. With all this financial knowledge readily available, we can assume most people are taking steps to get their financial house in order, right?
Wrong. Many people tend to avoid setting financial goals, and even if they do, they tend to focus on a specific one likesaving for college or retirement. However, they often fail to look at the entire picture, including weaving in their personal values into the equation, which can be critical to building a personalized financial program. Adopting a holistic approach to managing your finances can help link your decisions about money with matters of the heart.
Another common mistake is making a financial decision without understanding its impact on other financial issues. Many financial choices overlap with each other. Paying attention to estate protection, for instance, will impact the resources available to address other needs and desires, such as vacations or giving to charity. Financial professionals can help you navigate these decisions.
What are some other areas to consider? Here are some ideas from Thrivent Financial:
Go beyond investing. Considering mutual funds and other investment products in money decisions is only one option in a sea of other financial tools.
Thinking that only the rich should pay time and attention to managing their finances. It’s important to adopt a financial philosophy regardless of monetary worth.
Believing that it can wait. A well-developed financial program grows with time, so getting a jumpstart on retirement planning at a young age works in one’s favor. Also, crises can happen at any age and financial preparation will help a person work through the unexpected.
Neglecting to reevaluate financial decisions periodically. Reviews should be done on an annual basis. Life events-like marriage, childbirth, job changes or home ownership should be signals to revisit financial goals.
For questions on your financial goals, contact the Meyer Klein Group of Thrivent Financial at (661) 799-0230. The Meyer Klein Group includes Melanie Meyer, CFP, CLU, Jeff Meye,rCLU, ChFC, and Casey Klein, FIC.