Get Financially Fit

As Team Soy Capital and 501 Club kick off our new partnership, this is an ideal time to set new financial goals.
Take this time to examine your finances, gain control and stick to a new budget or saving plan. Taking control of your personal finances will allow you to save and prepare for unexpected expenses. Here are some to tips get started on a financial health regimen.

1. Get Organized

Treat yourself to the gift of a financial organization system. Alphabetized file folders, or filing systems specifically for financial organization are available. Take advantage and start with an organizational system. While you’re getting organized, consider buying a shredder to keep your personal information safe from identity theft.

2. Create a Budget
Track your income and expenses to see how much money you have coming in and how much you spend. If you have debt, establishing a budget will help you to pay down your debt while saving. Use computer software programs or basic budgeting worksheets to help create your budget. Include as much information as you can and review your budget regularly.

• Identify how you spend your money.
• Set realistic goals, especially if you plan to cut some of your expenses.
• Track your spending and review your budget often.

3. Lower Your Debt
Debt from student loans, mortgages and credit cards is nearly unavoidable. Most families carry about $10,000 in credit card debt. Spending more money than you bring in can lead to financial stress. Establish a budget to pay down debts while you save.
Points to consider when cutting debt:

• Pay more than the minimum due and pay on time.
• Pay off debt with higher interest rates first.
• Transfer high rate debt to credit cards with a lower interest rate.
• Use loans for purchases that will appreciate in value like a home.

4. Save for the Unexpected and Beyond
Pay yourself first. Saving is important; it ensures a comfortable future that can endure financial surprises. No matter how old you are, it’s never too early (or late) to begin saving.

• Save at least 10 percent of your income for retirement. Enroll in a retirement plan or consider optimizing an established retirement plan. Contribute at least the maximum amount that your employer will match. Contributions made to these types of plans may be tax deductible. If your employer does not offer a retirement savings plan or you want to establish an alternative retirement plan, see Rick Imhoff in the Wealth Management Group or David Swartz in the Raymond James office, both in the Soy Capital banking center at 455 N. Main St. With their help, you can establish an IRA that is geared towards your retirement goals.
• Financial advisors often recommend keeping about three months salary in a savings account in case of financial emergencies like hospital bills or loss of job.
• Increase your contribution as your income increases.

If you receive direct deposit at work, ask your employer to send a specific amount to your savings account. Because the money is put into an account before you have a chance to spend it, automatic savings plans are an easy and convenient way to save. If your employer doesn’t offer direct deposit, set up an automatic transfer from checking to savings accounts.

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