The Basics Of Financial Fitness
There's a subjective uncertainty associated with financial wellness. Are you financially fit? While there is no clearly defined threshold there are baseline elements associated with financial fitness. To make sure you're on the right track, develop a financial plan that lays out clear goals and timelines. Below are steps to get you started:
Budget Crunch- Make a reasonable and practical budget. Assess your income and expenses to understand your cash flow and identify areas where you could
trim costs. Revisit and revise your budget often.
Save for Unexpected Expenses- Expect the unexpected, such as medical emergencies, car repair, or appliance replacements. It's important to establish an emergency fund (ideally 3-6 months of expenses) that can cover these costs.
Stay Credit-Worthy- Check your credit report periodically, make sure there are no errors while using it as a tool to track online bill pay and your credit limit. This will help increase your credit score.
Establish Long-Term Financial Goals- Saving for your retirement is a decision that will help shape your lifestyle during your Golden Years. It's never too early (or late) to work with a financial professional to strengthen your retirement plan.
Review Your Plan- Establishing a financial plan is not a one-and-done proposition. Review your plan at least annually, revising as necessary to align with your financial goals.
Increase Investments Potential Faster with Early Contributions- Investing early and often, such as small recurring investments over a long time period has the potential to produce greater returns than investing a larger amount over a shorter time period.
Cornerstone Wealth Management
486 N.W. 2nd Avenue
Canby, OR 97013
Securities and advisory services offered through LPL
Financial, a registered investment advisor. Member
The opinions voiced in this material are for general
information only and are not intended to provide
specific advice or recommendations for any individual.
Rebalancing a portfolio may cause investors to incur
tax liabilities and/or transaction costs and does not
assure a profit or protect against a loss.