Get your finances in good shape

Posted on January 2, 2015 · Posted in Financial Planning

Has life distracted you, and now you’re ready to give your finances a workout? We’ve compiled a list of five simple things you can do to make sure they’re on the right track. Some may take a little more effort than others, but the more you can accomplish, the healthier your finances are going to be, and the better you’ll feel.

1. Make the maximum contributions to your retirement accounts

Contributing the maximum amount into tax-deferred retirement accounts is perhaps the single most effective tool at your disposal to bring you closer to your retirement goals. Make sure your salary deferrals are updated for the 2015 limits and, if you are over 50 years old, you can begin making additional catch-up contributions.

2. Set up a healthcare proxy for yourself

A healthcare proxy will allow you to appoint an agent to legally make healthcare decisions on your behalf if you become incapable of making them yourself.

3. Set up an advance healthcare directive for your child who is over the age of 18

If something were to happen to your child over the age of 18 (while away at college, for example), if they haven’t set up an advance directive, you will not have the right to review or authorize any medical treatments for them.

4. Make a realistic budget

Setting up a realistic budget will hold you accountable for your spending and give you a clearer picture of your spending habits, potentially highlighting where you can save money.

5. Create or update your financial plan

Spending a few hours with a financial planner can help ensure you are on the right track and have considered all the different variables that go into a sound financial plan.