How Fit Are Your Finances? What to Check Up on in The New Year

So how are those 2014 financial resolutions going?” If you find that question cringe-inducing, trust me: you are not alone. And you may be over-reacting. As a financial advisor, I can assure you it’s still plenty early for you to turn your good financial intentions into actionable steps and repeatable systems.

All behavior change (weight loss, positive attitudes, money management, etc.) involves creating new, healthier neuro-pathways step-by-step. I see many parallels between increasing your physical well-being and your financial well-being. Appointments with an internist and dietitian serve to evaluate your physical condition and daily habits. Similarly, the 5-point financial blueprint presented below will provide a comprehensive initial overview of your financial strengths and opportunities for improvement.

Remember, the purpose here is not fear-mongering. It is simply to deepen your awareness of what your money can do for you when it’s well managed.

Earning & spending. This is your financial diet: calories in and out. Track your spending —all of it — for a month (or a week at least). You might be amazed to discover how many ‘calories’ go missing (in this case, expended rather than ingested). Use the old fashion paper-and-pencil method (like me)

Saving. Monitoring savings is like a regular check-up; it should include age-appropriate tests that gauge how well critical systems are working (and are funded). Emergency fund: six months of savings?

Debt management. Compare this step to maintaining your ideal weight. Kudos if you’re free of extra pounds (or money owed): you’re beating the trend.

Investing. It’s an exercise program tailored towards longevity and good health. Toned muscles fight the atrophy of aging; money is invested to fight and overcome the corrosive power of inflation. Do you know your current asset allocation, fees, and last year’s portfolio performance? Is it time to rebalance?   These are the essential questions every investor should ask and answer.

Insurance. This is the financial equivalent of preventative medicine, and it doesn’t stop with health and life insurance. Your chances of needing long-term disability insurance, for example, probably are greater than you expect.

So invest in your financial-well being. This week, take a few hours to run your numbers and ring in a healthy—and wealthier—2014. Call us at 7200039282 for Free introductory review!