Posted by Denise Kovach, CFP®, AIF®, NSSA®
A good thing to ask yourself is, “Where am I?” “Am I spending too much money and saving too little?” “Do I have life insurance, disability insurance, and health insurance?” “Are my beneficiaries correctly listed on my insurance and retirement accounts?”
Things you should do that will make a difference:
- Max out your 401k contributions. If you are younger than age 50 you can contribute up to $18,000. If you are 50 or older you can add an additional $6,000 in contributions, totaling $24,000.
- Make a will, or update your current documents. Make sure you have designated who will take custody of your children, who will inherit your property, who will make decisions for you if you become incapacitated.
- Increase and automate your savings. It is easier to save when you are on automatic pilot, as you don’t miss what you can’t see.
- Pay off debt, especially debt with a variable interest rate because rates will be increasing more as the Fed continues raising rates.
- Pay your bills on time. Late payments can hurt your credit score and paying late fees is money wasted.
Keeping your financial house in order is a continual thing, just like cleaning the home you live in. Give yourself a financial checkup and look at your processes to see what can be improved.