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Top 5 Tips for Achieving FINANCIAL WELLNESS

Financial Wellness is not just a cool buzzword. Improving your financial health can benefit your mental health and stress lev el. Here are some tips to help you achieve Financial Wellness. 1. Track, track, track. You can’t improve what you don’t measure. Just like if you are trying to lose weight, it’s important to keep track of the numbers. If you aren’t already, start tracking your income and expenses to see where you are. A variety of mobile apps are de signed to help you do this from the convenience of your smartphone. 2. Pay down debt. This is always a good goal to start with; but make it SMART. A generic goal like, “I want to pay off my debt” is not very motivating or specific, and therefore unlikely to be achieved. Try this instead: determine how much extra money per month you can put toward your debts, and then set up a payment schedule. You may have heard of the “debt snowball” method. It is just as it sounds – you start paying down your debts by putting a little bit toward each one. Once you have the smallest debt paid off, you take the amount you were paying to that debt and put it toward the next smallest loan and so forth, until you are rolling a big snowball down the hill full of all the minimum payments you were mak ing on smaller amounts of debt.

3. Start (or build up) an emergency fund.

A statistic published in the Federal Reserve’s, “2018 Survey of Household Economics and Decision Making” stated that at least 40% of Americans would struggle to come up with the cash needed to pay for a $400 emer gency. To prepare for such an event, I recommend creating an emergency savings account, with a goal of saving enough to cover 3 - 6 months of your expenses. It will provide a cushion for extenuating circumstances, such as a job loss or medical emergency. 4. Save for retirement. Even if you are currently saving, consider increasing your contribu tion. You may now be able to con tribute up to $19,500 to a 401(k), 403(b), and most 457 plans. If you will be age 50 by the end of 2021, you may also be able to contribute another $6,500 in “catch-up” contri butions. If you don’t have a retire ment plan or are already “maxing it out” and want to do more, you now may be able to contribute up to $6,000 in an IRA or Roth IRA ($7,000 if you are over age 50). 5. Consider hiring a professional to help you. Professionals may have tons of education, skill and resources for helping you save time and money. Consider hiring a CPA to do your taxes, as they may find additional deductions. In this role, I’ve helped clients with investment account

tax diversification and maximizing retirement contributions. Also, think about hiring a financial advisor to help you think through and achieve your future financial goals and avoid potential blind spots along the way. A study by The Vanguard Group indicates that professional advisors can add about 3% return to a client’s portfolio. One of the main things a financial advisor can do is to help “save you from yourself ” and avoid big mistakes that can devastate your finances. Some examples include helping you avoid 401(k) loans, determining the best place to take withdrawals in retirement (especial ly in down markets) and maximiz ing your Social Security payments. Advisors can also provide sound ad vice during periods of transition and navigating through major life events – such as divorce, inheriting money, and planning for retirement. Pro fessional advisors can also provide accountability and create a financial plan or “road map” to help you work toward your goal. Remember, a goal without a plan is just a wish. Š Jill R. Carr, CPA, CFP ® Financial Advisor Stephens Wealth Management Group

Investment advisory services are offered through Stephens Wealth Management Group, an investment adviser registered with the Securities and Exchange Commission. SWMG is neither a law firm nor a certified public accounting firm and no portion of this article should be construed as legal or accounting advice. Past performance may not be indicative of future results. This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Stephens Wealth Management Group, 5206 Gateway Centre, Suite 300 Flint, MI 48507 Ph: 810.732.7411.