Top 5 Financial Planning Tips
Good Clean Funnies
October 5-11 is Financial Planning Week. What are
the best ways to improve your money and budgeting
situation? These top five strategies will help.
Clever Man
1
Make saving a
priority.
Saving on a regular
basis can be hard,
but if you treat this
as an expense, you’ll
have better success.
As with any bill,
you should make it
nonnegotiable to pay
into your savings
account each
month. Even a little
saved on a regular
basis will make a
difference. If you
struggle with this
strategy, consider an
automatic deduction to a savings account to make it a no-brainer.
2
3
4
5
A man was walking through the
forest one day when he stumbled
upon a talking frog. The frog
shouted to him, “If you kiss me, I
will turn into a beautiful princess.”
The man bent over and grabbed
the frog, shoving it into his pocket.
Startled, the frog spoke up again
saying, “Did you hear me? I will turn
into a princess if you kiss me. In
fact, I will stay with you for as long
as you want me.”
The man pushed the frog deeper
into his pocket and kept on walking.
Finally, the frog asked, “What is
the matter? I’ve told you what will
happen if you kiss me. Why won’t
you do it?”
The man smiled and said, “Look, I’m
a very busy man. I don’t have time
for a girlfriend. But a talking frog,
now that’s cool!”
Plan for the unexpected.
A budget is crucial, but we don’t always know what is in the future.
To prepare for the unexpected, you need an emergency fund. This
is different from a long-term savings account because you should
expect to use this money at any time. By realistically developing a
working budget and having a reasonable emergency fund, you will
have the means to pay all your expenses and avoid debt.
The Good Life
Understand your emotions.
It is important to understand your money personality and that
of your spouse. If you tend to be a spender, recognizing this and
developing strategies to manage your expectations is important.
A person who tends toward saving as much as possible also needs
to learn how to properly spend money. If you and your spouse are
opposite money personalities, communication about your financial
goals will help you develop a plan that works for both of you.
Set your goals.
Without goals, you will be unable to stay on track. Getting input
from a good financial planner can help you see how much you need
to save for retirement. Paying off debt should always be your first
goal in financial planning. You also need to identify what you want
to spend your money on. If you love to travel, then your extra money
after savings may go toward that. If you have significant expenses
coming up, like college for your kids, or the purchase of a new home,
then you should be clear about those goals. Whatever your goals are,
identifying them, talking about them, and tracking them is crucial.
Don’t bet on what you hope to happen.
Many people plan their financial present based on things they hope
happen in their financial future. But if those things don’t materialize,
you can be in trouble, especially if you are accumulating debt now
in anticipation of a change in your situation. Until you actually get
that bonus, move to a cheaper city, inherit that money, or see the
stock market move up, don’t spend that money. It is better to have it
actually be a bonus and increase in funds than to have to deal with
trying to come up with money you’ll never see.
Quick Tips
Healthy Living Tip
It may be tempting to lie in bed
when your back is acting up, but
researchers have found that you
may be making things worse. Bed
rest can weaken back muscles,
leading to longer pain episodes. The
best treatment is moderate activity,
use of pain relievers as needed, and
adequate rest at night.
H E A LT H Y, W E A LT H Y & W I S E