Building Wealth in 2018
September: Fall Budget Cleanup
This past spring in our Building Wealth in 2018 series, we shared ideas on how you can reduce small expenses that can add up to a substantial amount over time, as well as how to use the savings to invest in growing your long-term wealth. With the fall season upon us and a few months left in the year, it’s a good time to look back and evaluate your progress.
Before you tackle a financial cleanup of your accounts, be sure to review the two prior articles from our Building Wealth in 2018 series to gain or renew your understanding of the ideas we shared, such as how to create an emergency savings account as well as how to trim back on monthly expenses to begin building long-term wealth. Once you have tackled the major points from these articles, then you are ready to take your fall budget cleanup to the next level.
· Estate Planning. This is an area no one wants to think about, however, it is crucial for both you and your family’s future. Are the person who knows all of the logins for your accounts, the location of where financial documents are stored and manages the finances and insurance policies? If so, have you ever given any thought to what your loved ones would be able to do if something were to occur that left you unable to manage any of this stuff for even a short period of time? Consider speaking with an estate planning professional for assistance with creating an estate plan to safeguard your assets. Consult with your financial advisor and be sure to keep a record of your accounts in a safe place where others will be able to access this information as needed.
· Get on track for year-end. Now is the time to discuss tax planning with your accountant, so you have time to maximize annual limits on accounts, such as your Roth IRA or 529 college savings plan.
· Start thinking about 2019. It’s never too early to begin planning your finances for next year. It’s a good way to evaluate your monthly expenses, so you can identify other ways to save on expenses for other needs, such as a vacation, addition to your home, etc.
Congratulations on getting to this point! It’s only been 9 months, yet you’ve made huge strides toward fulfilling your long-term goals for building wealth. For the coming year, start thinking about how to build upon these successes. Now that your expenses have been streamlined and your accounts set up, it’s far easier to plan for the next level for sustaining your long-term wealth.
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