New Year's Pledge- Take 7 Steps to Get Financial House In Order
Posted by dan wagener on Sun, Jan 02, 2011 @ 09:06 AM
It's 2011! Happy New Year!
It always amazes me how something like a new year can invigorate my organizational skills and provide that clean slate feeling that gives a sense of calm and hope for the future. This year is no different, but in these financially turbulent times I am taking action to ensure my financial stability remains intact. Here are 7 steps I recommend taking to stabalize your finanacial resolutions in 2011:
1. Pay off all or as much credit card debt as possible. The average credit card interest rate is 16.7% This is not a smart way to pay for clothes, food, or living expenses. A zero balance on a credit card is a smart way to use short term credit to your advantage.
2. Analyze my finances and put aside a rainy day account. Put together a workable budget and set aside 3 to 6 months of gross salary in a liquid account for emergencies.
3. Have a strategy for banking a investment. Today the average 6 mo. CD and money market accounts are yielding less than 1%. It may be time to start investing in the stock market through mutual funds, exchange traded funds or solid large cap stocks. The problem most people have with the stock market is that they take money out when the market drops. The stock market is a long term financial strategy. Be disciplined to buy low sell high.
4. Have a rational plan for owning or renting a home. If you own or are looking to buy a home consider the fact that interest rates are very attractive. Work with a lender to see how much you qualify for. Analyze all of the costs of owning, not just the mortgage payment. If you own and have a high home equity loan balance pay it down or off as soon as possible.
5. Maximize all benefits at work. Take a look at all the benefits your employer provides. Take advantage of any you may have ignored. Please, please, please fund your 401K plan to the limit, especially if your company is matching a portion of your contribution.
6. Be wary of potential scams. Social media has increased our information gathering ability and also provided a nice platform for scam artists looking to take advantage. Look out for that random widow who wants to share her alleged $10 million inheritance with you, but needs to park the money in your bank account for a while.
7. Include family members in planning for financial future. Talk with every member of your family about finances. Make sure they understand how much things cost. This includes children who may not know why they suddenly cannot get everything they want.
Take these 7 proactive steps for financial health and be prepared for the new year with more confidence. If I can be of assistance in any of your commercial investment real estate projects in 2011 please contact me.
I wish you much prosperity in the new year!
Sincerely,
Dan Wagener, CCIM, SIOR
Wagener Equities, Inc.
Phone: (847)417-9713
Email: dwagener@wagenerequities.com