Top Financial Planning Tips

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Today, I want to talk about basic, sound, financial planning, and some top planning tips to help you achieve financial success:

1. Spend less than what you earn. For many years in our country, we had a negative savings rate. People were spending more than they were earning. It is imperative that each and every one of us saves money consistently, and the only way to do that is by spending less than what we earn.
2. Establishing a budget can help. It is very important for you to understand your monthly outflow. What is your burn rate? How much are you spending each month, compared to your net income?
3. Pay off credit card debt. Always, always avoid any credit card debts. They’re onerous, they’re dangerous, and they put people in a vulnerable financial position.
4. Protect your assets. Protect your income by having proper life and disability insurance. Protect your other assets by having proper car and homeowner’s insurance, as well as liability and umbrella policies. All of these measures can help protect your wealth.
5. Invest money in savings accounts each month. Save money in a savings account. First, save until you have enough to cover six months of expenses. That becomes your emergency fund. Then begin to invest those dollars that you continued to save into investments, and/or potentially, into a retirement account, a Roth account, or a 401(k) account.
6. Make sure you have a good estate plan. Most people in America die without a will. I believe the statistic is only around 30% of the people in the United States have wills. And for those who have a will, often, it was set up many years ago and needs to be updated to account for life changes that continually occur.

For instance, our clients that are worth over $5 million, need to redo their wills because there are often major changes in the estate tax rules with each new administration. In addition, things change with family: People get hurt. People get sick. People’s ability to manage an inheritance changes as things happen in their lives.

So these are the basics:

• Keep good records.
• Save more by not allowing yourself to spend more than you earn.
• Stick to a budget.
• Avoid credit cards.
• Set up an emergency fund.
• Protect your wealth.
• All are part of a sound financial plan.

If you have any questions or would like to learn more about establishing a smart financial plan that addresses all of the basics, let us know. We would be happy to introduce to you some concepts and ideas that may allow you to accomplish all of these goals.

And, as always, feel free to give us a call if there is anything we can do to be of help to you.

Registered Representative offering Securities through American Portfolios Financial Services, Inc. (APFS) Member FINRA/SIPC. Investment Advisory Services are offered through G&G Planning Concepts, Inc. which is not affiliated with APFS. Strategic Wealth Advisors Network and Gassman Financial Group are not affiliated with APFS.

Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.
This material is for informational purposes only. Neither APFS nor its Representatives provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions.American Portfolios Financial Services, Inc.(APFS) and American Portfolios Advisors, Inc.(APA) are not affiliated with any other named business entities mentioned.