Five Simple Steps to Boost Your Financial Confidence

Many of us push long-term financial planning to the back burner because of overwhelming short-term priorities like child care or eldercare, our careers, and community commitments. However, one of the best moves you can make right now is to become more familiar with basic financial planning. No matter how complex your day-to-day life, today is the day to begin prioritizing your goals and increasing your financial confidence.

Getting Started

Here are some things to consider:

Know where you stand and where you want to go. Invest in some user-friendly financial planning software and start reviewing your records. (Many home computer systems come with basic financial planning programs already installed.) Know where your money is invested and how much debt and insurance you have. Next, make a list of your goals such as paying off your house or saving for your child's college education. Have this information handy when you meet with a financial planner.
Consider meeting with a financial planner. What you don't know can hurt you, so seek out a financial professional. Ask friends and colleagues for referrals and look for someone with whom you feel comfortable, who specializes in building a long-term financial plan.
Ensure your future security. Carefully review your life and disability insurance needs, especially if you are the primary breadwinner. Life insurance can help protect a family from the devastating loss of a wage earner. Be sure to ask your financial planner if long-term care insurance is right for you as well.
Max out your 401(k). You've heard this advice before. If you have yet to heed it, think again. Contributing to a 401(k) really is one of the easiest, smartest things you can do to help prepare for retirement—even during times of financial difficulty. If possible, contribute the maximum amount allowed by your employer and take advantage of any matching contributions.
Create a will or estate plan. Many of us make the mistake of not creating a will, leaving loved ones to deal with the burden and expense of probate court. A will can clearly express your wishes in the event of death and helps protect assets for future generations.