Image result for financial skeletonsChances are this Halloween you may run into some cute skeletons trick or treating in your neighborhood.  These may not give you much of a scare unlike the financial skeletons hiding in your closet.  Even one financial skeleton lurking around can impact your financial security.  Take a look at some common financial skeletons that can easily be cleaned out your closet.  No matter what financial skeletons you may have you can always do something to correct mistakes and rebuild your credit.

  • Living paycheck to paycheck can knock you off track at any time.  You may find yourself spending everything you earn each month.  But if an emergency came up how would you cover it?  If you cannot see an expense that you can cut you may need to evaluate what it is you view as a necessity.  What you can do in this case is track your spending for at least three months to get a snapshot of where your money is being spent.  Do not forget to include payments you make once or twice a year.  Break each item down to determine whether needs vs. wants and create a budget that fits within your income.  Make sure to make room in your budget for savings and work towards building an emergency fund.
  • Is too much debt suffocating you?  The average American household owes more than $10,000 in credit card debt according to the U.S. Census Bureau.  If you combine credit card debt with mortgages and student loans some families are truly suffocating in debt.  To help you with this you can request a copy of your credit report to check for accuracy.  Make sure you do not take on additional debt and create a repayment plan on all credit cards.
  • Avoid funding your own retirement by having a 401(k) plan as part of your benefits package at work.  Speak with your human resources department to see what is the most you can put into your account each year.  Also ask how much you would have to contribute to receive an employer match and save that amount towards your 401(k) plan.
  • Work with an estate planning attorney to set specifications of who to transfer your property to when you pass.  You can also determine who can make medical and financial decision of your behalf if you are incapacitated.  When documents are drawn up make sure someone knows where to find them.  Review all documents every five years and make any changes if needed to keep up to date documents.
  • Our elderly are finding themselves in need of either home care or a long-term facility.  If you would need some type of long-term care, how will you be able to pay for it?  Long-term care insurance is not for everyone so work with a professional to review options.  Aside from determining need an insurance professional can assist with information on waiting periods, benefit costs, inflation and length of coverage.

Contact our office to make an appointment with a professional financial planner to coordinate a plan to establish personal and financial goals.