Having a solid plan is key to financial wellness, so it’s important to get it right. Here are 5 common mistakes and ways to avoid them. A written financial plan helps ensure you’re covering all the bases. Include things like your budget, retirement and other investment goals‚ as well as all your debts. Did you make a plan a while back but haven’t looked at it in a long time? Then it may not be helping you much. Review your plan with a financial professional regularly to help stay on track, and make needed adjustments. Do this annually — or whenever your situation changes. It may feel like you have all the time in the world to save for retirement, but it’ll be here before you know it. So don’t neglect this crucial part of your financial plan.
Setting up automatic contributions to your 401(k) plan is one of the easiest things you can do to help put yourself on track for a secure retirement.
Dealing with an emergency can derail your financial plan — and add to your debt. Set up an emergency fund of at least 3 to 6 months’ worth of expenses, so you don’t have to reach for credit cards or raid your retirement account in a crisis. And secure adequate insurance coverage for your car, home and other possessions.
Housing, food and transportation are often the 3 biggest household expenses. Overspending on any of them can make it harder to meet your financial goals.
Many experts recommend spending no more than 28% of your monthly income on housing and no more than 36% on your total debt, including credit cards and car payments.
Sit down with a qualified financial professional to create a realistic and thorough financial plan that addresses your individual needs and goals.
Because when it comes to your financial future, a solid plan beats out a wish every day of the week. To learn more about WellCents Financial Wellness visit: https://mywellcents.com
