5 Steps To Get Your Financial House In Order

Preston Rosamond |

By Preston Rosamond

Have you had a major life event happen recently that’s forced you to rethink your finances? Maybe you just had a baby, got married, or experienced a death in the family. Whatever it is, it usually takes one of these life-altering events to make you realize you need to take action with your finances.

Thankfully, it’s never too late to start. Here are 5 steps you can take today to get your financial house in order.

1. Get Organized

As with anything, mindset is key. If you’re not mentally prepared to fix your finances, you’re doomed to fail. The process can be mentally and physically draining. Prepare yourself for the rough road ahead by getting organized.

Communicate With Your Family. If you have a trusted family member who is good with money, invite them to be your accountability partner. They can serve as a source of motivation and support for those times when you want to spend money on something fun but know you shouldn’t.

Check Your Credit. When was the last time you checked your credit? For most Americans, it may be hard to remember. You’re legally entitled to a free copy of your credit report every year from each credit bureau. You can request your free copies at https://www.annualcreditreport.com/index.action.

Keep Financial Documents Safe. Store physical documents (such as your will, trust, and deed) in a fireproof safe. Keep the safe with a trusted professional or loved one.

2. Create A Budget

A strong budget lays the groundwork for financial stability. As much as you may hate tracking expenses, knowing your inflows and outflows is the first step in reaching your financial goals.

Add up all your income and subtract your monthly expenses. If you’re living beyond your means, look for serious ways to cut down on your spending. If you spend way too much money on discretionary items like clothing, for example, give yourself a monthly allowance and stick to it.

Remember, your budget isn’t set in stone. You can always adjust your budget as you meet your financial goals. The purpose of fixing your finances is to create a better life for yourself.

3. Build An Emergency Fund & Tackle Debt

Emergency funds aren’t one-size-fits-all, and it’s best to come up with a number based on your income stability and family. A good rule of thumb is to have three to six months of expenses on hand.

Debt keeps you living paycheck-to-paycheck, which destroys your quality of life. There are several debt payoff methods out there, but two popular ones are the debt snowball and the debt avalanche. Talk to a trusted professional—such as a financial advisor or financial planner—about which method may be best for you.  

4. Protect Your Assets

You’ll begin to accumulate sizable wealth as you pay off debt and save. In the event something happens to you, ensure your family is taken care of well by protecting your assets. A few ways you can protect your assets:

  • Create or update your will
  • Update beneficiaries
  • Analyze insurance coverage
  • Evaluate investments and retirement contributions

5. Meet With A Trusted Financial Advisor

Getting your finances in order can be an overwhelming process, but you don’t have to do it alone. No matter where you are in the process, a financial advisor can help you make rational decisions with your money. As an industry expert, they can also make sure you’re maximizing your wealth while minimizing your risks.

At The Rosamond Financial Group, we’re here to walk with you through every step of life. From getting your financial house in order to living out your years in retirement, you can count on us to be your trusted advisor. To learn more about how we can help you reach your financial goals, book a free introductory meeting online!

About Preston

Preston Rosamond is a financial advisor and the founder of The Rosamond Financial Group Wealth Management, LLC with nearly two decades of industry experience. He provides comprehensive wealth management and financial services to individuals, professionals, and families who enjoy simplicity and seek a professional to help them pursue their goals. Preston personally serves his clients with an individual touch and a sincere heart, and his servant’s attitude is evident from the moment you meet him. Learn more about Preston or start the conversation about your finances with him by emailing smrosamond@rosamondfinancialgroup.com or schedule a call with our online calendar.