Through our many years working together with people and their finances, we have noticed a few consistent habits that our wisest customers follow. Because we want everyone to be a good steward of their money, we thought it would be helpful to share these five tips with you.
Always Budget (and use technology to help)
Of course, a wise person creates a plan for money before it is spent. We all know we should have a budget. But how does one stick to a budget and practically use it in the real world? The answer: use technology.
- YNAB– Check out You Need A Budget. This app, good for your mobile device or desktop, helps give every dollar a job. It embraces your true expenses and makes adjustments along the way. It’s easy to use and connects to your existing bank account.
- Simple– This is similar to You Need A Budget in that you can make a plan with “goals,” automatically save money, and know what is safe to spend. The main difference with Simple is this: rather than connecting to your current bank accounts, it is its own bank account. The bank account is free and comes with amazing budgeting functionality.
Action Step: Sign up for one of these apps or a technology like them.
Obtain Intelligent Insurance
There are many layers to insurance. One of the layers is the liability. As a whole, almost all insurance policies protect what you are responsible for (liability) in the event of an accident. Wise people know that the liability portion of an insurance policy is extremely inexpensive but very intelligent to max out. As a result, they make a habit of asking their insurance agent to max out the liability portion of the insurance policy.
Action Step: Call your insurance agent and ask them to increase the liability portion of your Auto Insurance Policy to the maximum of “250/500″. Click here to schedule an appointment with our team today!
Maximize Savings with Tax Efficiency
One of the best ways to save money is to keep more of what you’ve earned. By contributing to a retirement plan, you can defer income and keep money that would normally be taxed. If you’re contributing the maximum allowed to your retirement accounts, you could be saving thousands of dollars in taxes.
Action Step: Save money by paying less in taxes and save for retirement simultaneously by signing up for your 401K plan at your job. Or, talk to your advisor about retirement account options. Click here to schedule an appointment with our team today!
Obtain a Conventional Mortgage
The average American obtains around five mortgages in their lifetime. Often, borrowers are faced with a decision to obtain a quick and easy mortgage or wait a few months for a more intelligently designed mortgage. Wise people make a habit of waiting so they can get the best mortgage possible—a conventional mortgage. Conventional mortgages typically have lower rates and lower payment terms. This can save several thousands of dollars over the life of the loan.
Action Step: Ask a mortgage advisor what kind of mortgage you have. Click here to schedule an appointment with our team today!
Plan for the End
The mortality rate is still at 100%. Wise people have documentation in place to make things easier for their loved ones when they die. Also, it’s important to review and adjust this documentation annually. As life changes, so should your end plan. You won’t want to leave your loved ones dealing with legalities or an out of date plan. A properly executed estate plan not only communicates what should happen in the event of death but actively structures assets to ensure they smoothly transition in ownership.
Action Step: Review your current estate plan and ensure its properly structured in accordance to your life and relationships. Click here to schedule an appointment with our team today!