Start a savings plan to get your finances in order
Could this be the year you get your finances in order? A savings plan doesn’t need to be overwhelming, try these seven tips that financial advisors use with their clients to keep them on track.
Put it in writing
The very first financial resolution you should make, no matter where you stand, is to take outline your financial situation in writing. For some, it may seem easier to ignore your savings accounts in favour of simply making ends meet from week to week. While that’s tempting, you’ll never take control or your finances by avoiding them. “Take an hour or so to take inventory of all of your financial accounts,” says Patty Cathey, financial advisor at Smart Retirement Plan. Create one document with the type of account, info on how to access it, the account holder and the contact information. “If applicable, review the list with your spouse and any adult children,” she adds.
Track your spending
Some financial mishaps happen simply because we aren’t paying close enough attention to our spending habits. Once you have taken an inventory of your finances, watch your spending for unnecessary expenses. “Take out the magnifying glass and take notice of the details in your financial picture,” Cathey advises. “Comb through your credit card statements to see if there’s any unnecessary spending or charges. Are you paying for a gym membership or cable channels you don’t use? Is there a charge you didn’t make that could be fraud? Paying attention to the little things can make a big difference in your finances.”