(NEWS CENTER) - The New Year brings the promise of
starting fresh in all areas of your life - including your finances. So to help
you get your financial house in order, Sarah J. Halpin CERTIFIED FINANCIAL
PLANNERTM professional, Vice
President-Investments of The Danforth Group of Wells Fargo Advisors is here with some ideas to get you started.
Family Spending and Earning Plan - It's difficult to manage your money
if you don't know how much you have or where it is going. Get a clear picture
of your finances and track monthly sources and amounts of income and
spending. Your income must be more than
your expenses for you to have opportunities to save for the future.
Build a Cash
Cushion -A study published by the National Bureau of Economic Research stated
nearly half of Americans said that they definitely or probably couldn't come up
with $2,000 in 30 days for an unexpected expense. Make sure you are preparing your household to
cope with a financial emergency. Set up an automatic savings plan and build a
cash cushion of 5-6 months fixed living expenses. More if you are concerned
about your sources of income or have large planned upcoming expenses in 2014.
credit card debt. According to creditcards.com,
roughly 1 in 6 American households make the minimum monthly payment on credit
cards. The average annual credit card percentage
rate is 14.4% and the average household owes over $10,000 in credit card debt. With these statistics, it's easy to see how
over 40% of American families are actually spending more money than they earn
because of debt levels that they are unlikely to ever pay off. Commit to reducing
debt which can help your monthly cash flow and your credit rating.
4. Save for Retirement - Look for
ways to save and invest for retirement. Regardless, of if and when you think
you will retire, you need to plan for a time when there will be a permanent
reduction in your earnings. According to
the 2013 Retirement Confidence Survey, only 42% of workers have taken the time
and effort to complete a retirement needs calculation - the basic planning step
that can help individuals determine how much money they are likely to need in retirement
and how much they will need to save to meet that goal. Depending on your
lifestyle, you may need substantial savings to supplement social security and
to last as long as you potentially will.
about money. People are more
likely to discuss their health problems, their political views and their weight
than money issues. An American Express
poll found that nine out of ten married people avoid talking to their partner
about money. Commit to stop dodging discussions and schedule weekly dollar
dates to discuss your major family and spending goals and how you expect to pay
The information provided is general in nature and may not apply to your
personal investment situation.
Individuals should consult with their chosen financial professional
before making any decisions. Investment
services are offered through Wells Fargo
Advisors, LLC member SIPC. Neither Wells
nor its financial professionals are legal or tax advisors