You’re Headed in the Right Direction!
Confucius said, “A journey of a thousand miles begins with a single step.” You’ve taken that first step by thinking more critically about your financial situation and goals. Now it’s time to build a more solid financial foundation to take it to the next level.
Partnering with a financial planner can help you optimize your cash flow, investment portfolio, tax strategy, risk management, and much more. Get started with the checklist below.
First things first
What is a Financial Plan, and Why Should You Build One?
Get Organized
- Use programs such as Mint, Quicken, or an Excel file to organize your financial life and track your spending.
- Find out where your money’s going. For example, are you spending too much on dining out when you would actually prefer to be spending more on travel or other hobbies?
- Adjust your spending if necessary to better support your priorities.
Maximize Your Budget
- Find out if you’re saving in these three areas: The Top Three Expense Categories You Should Review to Save More Money.
- Merging finances with a partner or spouse? Learn how to develop shared goals and avoid these common mistakes: Five Money Mistakes Couples Make and How to Overcome Them.
Build an Emergency Fund
- Save between three to six months of living expenses in an account that earns interest and is easily accessible.
- Adjust your emergency fund based on your risk tolerance, your type of employment, if you have a spouse who’s working, if you have children who are dependent on you, etc.
Start Saving for Retirement
- Consider starting your own IRA or Roth IRA if you’re not yet contributing to an employer-sponsored retirement account.
- Set up automatic transfers that take the hassle out of saving.
