Financial Planning for 2017: Where You Should Start
This year, take charge of your finances. Whether you hope to grow your investment portfolio or build your savings while paying down credit, it all starts with a plan. Working with a financial planner is by far the best way to create and develop a strategy that will allow you to achieve those financial goals. You can also use these steps to get started.
#1: Create a budget
How much income do you have each month? How many expenses do you have? Create an accurate budget for the way you’ll spend your money. For a budget to be accurate, you’ll need to ensure it is accurately representing what you spend in an average month. Calculate this from records and receipts. Plan for some of your income to go into savings, to payday debt, and to be used as spending money.
#2: Check on your insurance
Now is an excellent time to check on your home and auto insurance plans. It’s important to recognize that you can update or change policies at any time, not just when you plan ends. Get a few quotes from insurers to find out if you can save money. And, be sure your policies reflect your current lifestyle, assets, and risks.
#3: Create a debt repayment plan
Using the money from your budget you’re putting towards paying down your debt, create a plan to pay off some of your credit. Choose a credit card, such as the one with the highest interest rate, to put the most towards each month. Then, pay off the next one.
#4: Check out those utilities
Can you reduce any of the costs associated with your cell phone, cable, or other bills? Now is also a good time to think about upgrades to your home that can reduce your energy costs, such as installing a programmable thermostat or even solar lighting.
#5: Work on your investment strategy through financial planning
Work alongside a financial planner to determine where you can invest better. Financial planning should be updated at least one time a year. Ensure your investment plans meet your risk tolerance levels as well as your retirement goals. And, be sure to follow up with your tax professional to find ways to reduce your costs.
Make 2017 financially sound by investing in your finances. Take the time to get organized and on track to achieve your goals.