Financial Planning for 2008

Personal finances can be a bit of a challenge. No matter how you’ve assessed your situation, there are ways to improve your bottom line.

Below are 9 tips that may help you improve your long-term financial planning:

1. Spend less than what you make.


2. Save more – Pay yourself first. Pull out 10% of your income before anything else is done. This 10% can include your 401(k) account, etc.


3. Know your net worth. This number should increase each year.


4. Ensure that you have money set aside for an emergency.


5. Reduce your debt. Create a list of your creditors and categorize them by interest rate (highest to lowest). Pay them off in that order.


6. Use credit cards wisely. If you decide to use them, ensure that you can pay the balance in full when the bill arrives.


7. Ensure that you are properly insured. Life, home, health and auto, are only a few.


8. Ensure that you have a will and/or an estate plan.


9. Monitor and manage your portfolio. Ensure that you are working with a certified financial planner, so that your long-term financial goals are addressed.
   

This information can serve as a mechanism to get you back on financial track.

Source: PrimeWay Federal Credit Union