Top 5 Tips to Improve Your Finances

Most people find it challenging to stay on top of their finances. 

As with your workout or diet, there are small tweaks you can do to improve your financial fitness.

Here are FIVE suggestions to have your finances in good order!

Your Debts

Paying off any consumer debt should be a priority. Get a low interest line of credit from your financial institution and consolidate your debt. Avoid any unnecessary additional spending until your debts are under control.

Keep building your emergency fund so that you don't need to dip into your credit.

Your Mortgage

Do you own your own home? Do you have a mortgage? If you are paying your mortgage monthly, you are giving your financial institution the great gift…of your money! Paying your mortgage weekly or bi weekly can save you money and take years off your amortization period.

Your Portfolio

We’ve been through some tough times and right now some markets are not performing well. Consider your objectives for the next five to ten years. Then perform an annual check to see if your portfolio needs rebalancing. While you are at it, check on your financial planner’s credentials and references, and check with regulators to ensure that everything is in order.

Your Estate

If you don’t have a plan, for goodness sakes get one!

Set up a trust and avoid possible years of unpleasantness for your loved ones by avoiding bickering or probate.

If you already have a plan for your estate, Congratulations!

Take time to make sure it is up to date. Review all assets to make sure everything is included. Verify your power of attorney and make sure you still want this person to act on your behalf in case of incapacity. Ensure that all loved ones (especially the recently born!) are included.

Your Taxes

Keep your taxes current and make sure you file on time! If you have to pay the IRS, at least you won’t be giving them extra money in penalties!

If you are lucky enough to get a refund, don't blow it! Invest it instead!

The best way to ensure a comfortable retirement is to leverage funds now. Smart investments now can yield substantial returns.

These steps are good places to start a more conscious and directed route to achieving your financial freedom. Read, reflect and take what will work for you.

Bottom line is that there is no blanket strategy. Each person must evaluate their own circumstances, needs and desires. Get the help you need to achieve financial freedom.


Above all, believe in yourself and believe that you will achieve your goal!

_________________________________________
Sources:

Lynda at Sonoran Sun | Private Equity Investments