Getting your financial house in order is incredibly important when it comes to planning for the future. Not only does this make it easier to understand your current spending habits and live within your means, but you’ll also know where all of your important documents are in the event that you ever need them. Beyond that, it will also be easier to prioritize your money and determine how you want to spend it. Maybe you want to save up for that big family trip to Hawaii, or maybe you’ll sock money away for a new Tesla.
Whatever the case may be, organizing your finances gives you more control over your monetary situation. But it’s one thing to say you want to get organized; it’s another thing to actually do it.
With that in mind, let’s take a look at what you can do, specifically, to organize your finances—and, once that’s done, how you can keep everything in order for the long haul.
First things first: Getting your financial house in order starts with collecting all of your financial documents and storing them in one place. Not only are you going to want to maintain a filing cabinet or put your sensitive financial information in a safe, but you should also consider organizing your documents online.
For example, EP Wealth collects and stores all relevant financial information on each client’s Personal Financial Website, which enables us to provide a comprehensive picture of each client’s net worth, budgeting, and financial goals. As an added bonus, you’ll know that your financial documents will be protected in the event of a disaster or a break-in.
If you want to get your financial house in order, you first need to list your sources of income, expenses, and assets to get a better idea of how much cash is coming in and how much is going out. So spend some time collecting information about each of the following:
The more information you have about each of these important elements, the easier it will be to fully understand your financial situation.
Once you have gathered all of that information, it’s time to create a budget and set SMART goals, which are specific, measurable, achievable, realistic, and timely.
For example, if you want to retire by the time you turn 65, you might decide that you need to fully fund your 401(k) and contribute 5 percent of your paycheck to other investments.
If you set unrealistic goals, you may never end up anywhere near them. By setting goals that are within your reach, you’re that much more likely to attain them.
Gaining control over your finances requires a lot of work. From the outset, the entire undertaking can seem intimidating, and even insurmountable.
But if you put in the time and energy, it’s possible to organize your finances, which is the first step toward building a more secure financial future. And the best part is that you don’t have to go it on your own. When you partner with a financial advisor, you have access to a professional who has helped tons of people just like you gain control over their finances—and make more informed financial decisions because of it.
For more information, schedule a Financial Health Assessment with EP Wealth today to find out how we can help you get more control over your financial future.
The EP Wealth Advisors financial planning process starts with the relationship between you and your financial advisor. How do you value a financial coach? Developing a partnership that ensures we understand your goals lets us help you prioritize and organize your financial decisions—so you can achieve peace of mind and live your life.
Wealth management tips and news for all people