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Financially
Fit - Resolutions for the New Year |
The new year is an ideal
time for recommitting ourselves to things that are
important to us. What could be more important than being
financially fit? And what could be better than starting
fresh in a new year? Now's the time to set your goals.
Here are some picks for the most important resolutions
for financial fitness this year and beyond. If you don't
have a written budget, do one now. If you do have a
budget, resolve to stick to it.
Resolve to take advantage
of your employer's retirement plan, whether it's a
401(k), a 403(b), or any other kind of contributory
plan.
Resolve to save between 5
and 10% of your take home pay. Don't set money aside
only when there's some left over; pay yourself first.
There's a good reason why you've heard this advice over
and over. It works. Set aside 5 to 10% of every paycheck
in an interest-bearing account such as a money-market
account, or in tax-deferred accounts such as IRAs.
Resolve to pay off those
credit cards. Credit card debt is the number one reason
that most people can't get ahead. You may be shocked to
learn that paying the minimum balance due on a $1000
balance with a 16 to 18% interest rate may take 20 to 30
years to pay off. Think twice before whipping out the
plastic.
Resolve to write or
update your will. Wills are not just for the rich.
Regardless of how much or how little money you have, a
will ensures that whatever personal belongings and
assets you do have will go to family or beneficiaries
you designate. If you have children, a will allows you
to appoint a guardian for them in the event of your
death.
Resolve to educate
yourself about basic financial planning issues.
Financial planning is not voodoo. It's not rocket
science. And it doesn't have to be boring. The internet
makes educating yourself financially both fun and easy.
Resolve to write down
your financial goals. You wouldn't start out on a long
trip without a road map, would you? Well, the road to
financial freedom can be short and sweet (for those who
plan and who follow a road map), or it can be a long,
meandering path that leads to a dead-end (for those who
fail to make a plan for reaching their destination).
Resolve to get started
NOW on the road to financial freedom. German philosopher
Goethe said "Whatever you can do, or dream you can,
begin it. Boldness has genius, power, and magic in
it."
This year, resolve to
begin. Resolve to be bold when it comes to taking
control of your financial future.
The
purpose of this newsletter is to stimulate thought for
my clients and those
professionals
with whom I network. If you are a real estate,
estate planning, taxation,
financial
planning or insurance professional receiving this
newsletter, please call my
office
and introduce yourself to me. I'm always seeking
to grow my referral network and
expose
more service professionals to my client base. I
specialize in helping those
individuals
looking to buy, sell or refinance real property in the
Pacific Northwest area. |
