Modern Dollar Planning presents
Transform Your Finances: 7 Ways in 7 Days
I know that getting organized financially can seem overwhelming on top of the demands of everyday life. You’re balancing a family, career and dozens of other claims on your time. As a thank you for signing up for the Modern Dollar Newsletter, I offer you these 7 nuggets of free financial advice. Try taking them one day at a time. My hope is that these tips can inspire you to make at least one positive change in your financial life.
– Andrew Mohrmann | Modern Dollar Planning
It seems like common sense that you should spend less than you earn. "Income > Expenses" Straightforward, right? Yet many struggle with this simple principle.
If you’re married, chances are your spouse depends on you financially. If you have kids, they definitely depend on you. If something were to happen to you, how would they pay the bills? How would the afford college? Do you have a plan in place?
Expenses are your biggest enemy in investing. John Bogle, founder of one of the world’s largest mutual fund companies, described the phenomenon with the following: “In investing, you get what you don’t pay for.” Simply put, when your investments are expensive, you miss out on returns.
On Day 1, we discussed the importance of understanding your cash flow; equally as important is having a sense for your net worth. If you’ve ever taken an accounting course, this is akin to your own personal balance sheet. It’s what you own minus what you owe. Assets - Liabilities = Net Worth.
Starting a new job can be exciting, nerve racking and exhausting, which causes many young professionals to ignore the benefits booklet they get from the human resources department.
If you’re a young professional and have heard the term ‘estate planning’ you may think it only applies to your parents, but this isn’t true. All adults should have some type of estate plan. It doesn’t need to be complex, but below are key pieces that you should consider.
As a financial planner, my clients can feel like everything I tell them they should be doing is all about delayed gratification. They can start beating themselves up because they should have spent less last month, or they should be putting a few more percentage points into their 401k, or they’ve put off getting insurance in place. I don’t want you to regret every purchase you make.