I’m often asked \u201chow do I make sure that I (and my family) stay on track with
\nour finances?\u201d Following are a few pointers to start the New Year off right.
\nKeep in mind, this isn\u2019t about making resolutions (we all know how that goes), but
\nrather, building sound financial habits that will set you, and your family, in
\ngood stead, now and in the future.<\/p>\n
(1) TAKE STOCK. If you haven\u2019t done so already, the first place to start is to Was this a good year for you? If so, what made it good or what made it less (2) DON\u2019T GO IT ALONE. Think about how you can include others in this You might also want to use this opportunity to share relevant annual decisions (3) GET BUY IN AND ACCOUNTABILITY. It is best to commit to<\/strong> (4) TRACK YOUR PROGRESS. Ideally you’ll let us help you track your Edi Alvarez, CFP\u00ae www.aikapa.com<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" I’m often asked \u201chow do I make sure that I (and my family) stay on track with our finances?\u201d Following are a few pointers to start the New Year off right. Keep in mind, this isn\u2019t about making resolutions (we … Continue reading
\ntake stock of what was actually accomplished in 2015.<\/strong> This will be\u00a0easier if you combine it with your preparations for filing your income tax. As a\u00a0family, tally all of your statements (we send you a summary of the investments we\u00a0manage but we’re willing to help you summarize your other assets as long as you send a year-end\u00a0statement). This shouldn\u2019t just be one person\u2019s job \u2013 the point is to use the\u00a0opportunity to enhance everyone\u2019s awareness of how the money was earned\u00a0and spent last year. It is also a time to see how well the reality matched the\u00a0goals set at the start of 2015. Before you move forward you need to take stock\u00a0of those items you can control. Don\u2019t get too hung up on performance\u2014the\u00a0markets behave as they will and you’ll come out ahead as long as you have a\u00a0low cost, high quality, diversified portfolio. Once you have such a portfolio, it\u00a0is MORE important to determine how well you enjoyed the year than just
\nanalyzing your spending habits.<\/p>\n
\nenjoyable? As a family, what would you keep and what would you avoid
\nearning\/spending if you had a choice? Life is about learning from what we do
\nand what we value but it should be based on your<\/span> reality and your<\/span> values.
\nCome away knowing how the year met with your expectations for a good life.<\/p>\n
\nprocess. This is particularly important in families where one person takes a
\nlarger share of the family’s financial responsibilities. This “Start of the<\/strong>
\n Year” planning is an opportunity to develop closer communication<\/strong>
\n with anyone who is important to your financial future.<\/strong> First share
\nwhat was accomplished in 2015 and then decide what the family might want
\nor need in 2016. Do not forget that once you have set your goals you might
\nwant to include financial professional(s) to ensure that you maximize and
\nimplement all that is available. The power of building a strong financial
\nrapport over years will become evident during annual planning and when life
\nreveals unusual financial challenges.<\/p>\n
\nand your process with any dependents so that they become participants in
\nhelping the family attain goals for each year. For children this can be an
\nexcellent learning experience and evidence of how finances are discussed and
\nhandled in a family.<\/p>\n
\n writing what was accomplished in 2015 and what you are targeting<\/strong>
\n in 2016.<\/strong> You should set a quarterly check-in to be sure that everyone is
\ncommitted throughout the year to what is decided at the start (this is most
\nimportant for the first couple of years and until this process becomes habit). The aim is to\u00a0keep everyone on track and to determine if the goals and objectives are indeed
\nattainable.<\/p>\n
\nprogress throughout the year by checking in with us, but we also encourage
\nyou to make it a habit in your home.
\nMaking financial decisions can be challenging at the best of times, if only
\nbecause they tend to have a ripple effect that isn\u2019t always predictable.
\nRemember\u2014when taking stock and making plans, it helps to keep the lines of
\ncommunication open, control what you can and target those things you value.<\/p>\n
\n<\/sup>BS, BEd, MS<\/p>\n