7 Keys to Financial Wellness

The demand for women to take a leadership role in their financial lives is greater than ever, and the reality is that today women face a different set of financial circumstances than men. Did you know: 9 out of 10 women will be solely responsible for their own finances at some point in their life? (Forbes.com) Throughout my past 20 years as a financial advisor, I have had the privilege of advising, serving, and guiding many families through all aspects of their financial lives.  As a result of this experience, I am able to link together several key aspects for clients to obtain financial wellness: how to gain control, develop confidence, and ultimately reduce stress. I have discovered that there are 7 Essential Keys to Financial Wellness that help women unlock their potential and overcome all impediments on their journey to financial wellness:

THE 7 KEY’S FINANCIAL CHECKLIST & GOALS FOR 2021

Take Action

Swap bad habits for good habits! New Year, New Financial YOU! You can’t earn your way out of bad financial habits & time is an exaggerator. If you are doing things right or if you are doing things wrong, time compounds life’s little choices. Life’s changes only happen in small, consistent steps. Steadiness, consistency and faithfulness is the Key! Did you know it’s a scientific fact that it only takes you 18 days to change or create a habit?

Know your Score: Know your Score

Your credit score may be good, may be bad or not exist at all. That said, it is one of the most important financial aspects of your financial life and is critical for your independence. Commit to 2 Goals: 1. Study up on what it takes to improve your Credit Score & 2. 720 Credit Score or higher.

Track and Calculate your net worth

Track and Calculate your net worth. Why is this important? Because you cannot manage what you cannot measure in life! What are your assets? Assets are things we own like checking and savings accounts, retirement and brokerage accounts, our homes, and our furniture. List each of your assets and how much each is worth. What are your liabilities? Liabilities are things we owe including credit card balances, auto loans, student loans, and our mortgages. List each of your liabilities and how much you owe. Calculate your net worth by taking your total assets minus liabilities. Remember, your net worth has nothing to do with your self-worth.

Save Money & Time by Simplify and Decluttering

 Save Money & Time by Simplify and Decluttering. Take a look at your inventory and see where you can eliminate certain accounts. Do you have multiple 401 (k)s you’ve been meaning to roll over? How about checking accounts at multiple banks for no reason?. Set aside time to head to the bank and/or call financial institutions to start simplifying the areas you’ve outlined above. It might mean closing accounts or transferring banks. Plan a Financial Wellness day (recommended every 90 days). Doing this is a great way to tackle it over time and not all at once -you’ll make tremendous progress before you know it! Simplify wherever possible. This makes everything easier!

Seek out Debt reduction Strategies

Seek out Debt reduction Strategies. Set up a recurring calendar reminder for your 90-day review. Reset and plan your strategy going forward. What will you cover? Some ideas: check in on your spending for the past two weeks, eliminating a service or account you do not need anymore, from bundling to unbundling, eliminating apple app subscriptions, negotiate fees, rolling over or consolidating your retirement accounts or set up a high yield savings account.

Pay Yourself first

Start Saving Now and Make your Money work for you! Pay yourself first, start saving now and make your Money work for you! The way we typically view saving is pretty ironic. We earn money, live our lives, and pay our bills and then we wait to see if there is any money left over to go toward savings. The funny thing (or not so funny thing) is that when we do it this way, there will never be any money left over to save. We have to flip the equation ( I call this Reverse Budgeting) and pay ourselves first. When we do this we end up saving just like we always end up paying all of our bills. We make paying ourselves and saving a priority. You can become a saver right here, right now. Quick tip: Try to Cut 10% of your household expenses monthly (prioritizing needs over wants & negotiating with your service providers). These additional savings can be automated and immediately converted into paying yourself first. Automate your financial life wherever possible. It not only makes our lives easier but ensures that what we plan to do will actually happen.

Establish a Rhythm

As stated before, you should plan a Financial Wellness Day every 90 days! Plan to Plan, Set Goals & celebrate your progress! Journal your goals & track your progress. Use post-its and sticky notes to keep your focus along the way. Consistency is key and if need be invite an accountability partner to keep you on track. Preferably, someone from your Network of Advice!

Make Your Money Work for You

“If you don’t find a way to make money while you sleep, you will work until you die.-Warren Buffett

Find a Fiduciary Financial Advisor

Find an Advisor that has the Fiduciary designation to guide you in investing your hard-earned, saved, organized money to help you grow the net worth you have already established. They will help set up an investment strategy that will work FOR you even when YOU aren’t.

Brush up on Benefits

Retirement plan, 401 k company match, Vesting period, Health insurance coverage, Maternity, Paternity, Adoption leave, Tuition reimbursement, Student loan repayment assistance.

Check your important documents

Check your important documents. Check the titling of all your assets, have beneficiary reviews, and estate planning updates.