Now might be a good time to reset your finances. Below are a few key points to consider during your reset.
~ Take another look at your cash flow and review your income versus expenses. One area we have noticed is the increase in paying for apps and streaming services. Are you not using some of these or do you have duplicates of them?
~ Do you have 3 to 6 months of expenses in a savings account? If one wage earner is on commission, you may need 6 to 9 months.
~ Are you still saving for college expenses? Make sure you have some money going into an account. If saving for 4 years is overwhelming, then set your goal for 2 years. Two is better than none.
~ If your cash flow is positive, look to increase your contribution percentage into your 401k, 403b, or TSP. The contribution limits usually rise every year so you can contribute more. A good rule is to increase your contribution by 1% for every raise until you reach your maximum yearly contribution.
~ This market downturn might be causing you to reconsider your risk tolerance for investment assets. Has anything changed? Are you now closer to retirement? Relook if your allocations are still aligned with your willingness to live with risk and volatility.
~ Finally, are your estate documents up to date? Do you have a current Will, Advanced Medical Directive, or Power of Attorney? You should look to update these documents every 7 years unless something has recently changed.
If you need a planning check-up, don’t hesitate to contact us. We have tools and experience to help you get “back to the basics” and keep you moving forward to reaching your financial goals.
Stephen Moss is a Registered Representative offering Securities through UNITED PLANNERS FINANCIAL SERVICES, Member FINRA/SIPC. Advisory Services are offered through Pegasus Financial Group. Pegasus Financial Group and United Planners are not affiliated.
This is meant for educational purposes only. Information presented should not be considered investment advice or a recommendation to take a particular course of action. Always consult with a financial professional regarding your personal situation before making any financial decisions.