Keep it Simple

by Tabatha
(High Point, NC)

For successful financial planning you should always keep it simple. Some things you've heard a dozen times: Spend less than you make, avoid debt, stay properly insured, and never sign up for financial products that you don't completely understand.

But you should also be sure to consider your time spent in achieving your goals: Is it worthwhile to divide your money into a dozen different savings vehicles or check your portfolio daily and reallocate capital? Generally not.

Don't let your money stress you out - it belongs to you, you don't belong to it. Your financial plan, once created, should involve a minimum of upkeep and hassle. Have money auto-deposited into a savings or investment account. Check in every six months to a year to make sure you're on track.

Check on your insurance every 1-2 years to make sure you're properly covered and get quotes to see what is competitive in the market. Consider additional insurances such as identity theft protection and long term care plans.

For all insurance products be sure to ask questions and have a solid understanding of what the plan covers. To make sure you understand, explain it to someone else. If you can't explain it, you don't fully understand it and you don't need to buy it. Talk about your financial plan with your family and make sure they know where any important documents are kept.