Podcast Summary
Financial habits for maintaining well-being: Check tax withholdings, invest accounts, automate savings, set long-term goals, and prioritize actions for specific timeframes to build a strong foundation for financial health.
Just as there are daily, weekly, monthly, and yearly habits for maintaining physical health, there are similar financial habits that can help improve your financial well-being. These include checking your tax withholdings and investment accounts regularly, automating savings, and setting long-term financial goals. It's important to remember that an overwhelmed mind cannot effectively engage in financial planning, so taking small steps consistently can lead to significant progress over time. Brent Weiss, a financial advisor, recommends choosing a specific time horizon and asking yourself what financial actions you can take to reach your goals within that timeframe. By prioritizing and incorporating these financial habits into your routine, you can build a strong foundation for your financial health.
Setting financial goals and making the most of your money: Annually review and set financial goals, find a high-interest savings account, pay off debts, maximize retirement investments, and review insurance plans and subscriptions.
Defining and working towards financial goals is an essential part of leading a successful and fulfilling life. Money is a means to achieving various desires, such as security, freedom, or the ability to start a business. To make the most of your savings, it's crucial to find an account with a competitive interest rate, insured by the federal government. Setting financial goals annually, during tax season and open enrollment, can help ensure you're making the most of your money and benefits. This practice can include paying off debts, maximizing retirement investments, and reviewing insurance plans and subscriptions. Remember, the ultimate goal is to create a life you love and enjoy, so make sure your financial decisions align with that vision.
Assessing Investment Performance and Credit Reports: Regularly evaluate investment performance vs S&P 500, rebalance underperforming assets, watch fees, and review free credit reports annually for accuracy and good standing.
Regularly checking and evaluating your investments' performance is crucial for long-term financial growth. Soledad Fernandez Paolino, the CEO of Wealth Para Todos and a money and self-care coach, advises assessing your investment's rate of return and comparing it to the S&P 500 to gauge the market's performance. If your investments underperform, consider rebalancing your portfolio. Additionally, pay attention to fees, aiming for funds with low expense ratios. Annually, obtain free credit reports from each of the three major credit bureaus to ensure accuracy and maintain a good credit standing. Regularly reviewing your investments and credit reports can help you make informed decisions and secure a better financial future.
Regularly reviewing your finances for errors and improvements: Check credit reports for errors, assess debt, adjust tax withholdings, maintain accurate records, and monitor accounts for fraud to ensure financial accuracy and potential improvements.
It's essential to regularly review your financial situation to ensure accuracy and potential improvements. This includes checking your credit report for errors, assessing your debt, and adjusting tax withholdings. For instance, an old missed student loan payment was discovered and removed from a credit report, leading to an increase in credit score. Additionally, maintaining an accurate record of debt, including balances, interest rates, and monthly payments, can help identify areas for improvement such as consolidating or refinancing loans. Regarding taxes, ensuring accurate withholding by employers is crucial to avoid unexpected bills during tax season. Self-employed individuals or independent contractors should establish a tax savings account to prepare for income taxes. Lastly, maintaining a buffer in your checking account and regularly monitoring your accounts for fraud are essential financial housekeeping practices.
Maintaining Financial and Personal Well-being: Regularly check credit card statements, set income and career goals, monitor financial goals, practice self-care, reflect on purchases, engage in thought work, prioritize rest, and build habits for financial and personal growth.
Maintaining both financial and personal well-being requires consistent effort. Regularly checking your credit card statements for fraudulent charges, setting and checking in on income and career goals, monitoring your financial goals, and practicing self-care are all crucial components of financial health. Reflecting on your purchases, engaging in thought work, and prioritizing rest and self-care are essential for mental and emotional well-being. By incorporating these habits into your monthly routine, you can build momentum towards achieving your financial and personal goals. Remember, taking care of yourself is not a luxury, but a necessity for overall well-being.
Practicing self-care and positive affirmations for financial improvement: Focus on well-being and ability, review finances regularly, and practice daily self-care for financial success
Practicing self-care and positive affirmations can help improve your financial situation. By focusing on your well-being and believing in your ability to make good money and achieve financial goals, you can take actions that align with your desired results. Additionally, it's important to regularly review your finances by paying bills on time, checking your credit reports, and setting and monitoring financial goals. Daily practices like journaling, doing affirmations, and reflecting on your spending can also help ensure that your money habits align with the life you're building. Remember, taking care of yourself is essential to your financial well-being.
