What Will Your "Next Five" Bring?

It can be hard to plan for next week, let alone
three or five years down the road.

Financial planners are focused on the future, but for many people thinking 10, 20 and 30 years or more down the road is hard to do. When things are hard to do, people tend not to do them. So let's make it easier!

What will your next five years bring? To make it even easier, break it down in to one-year, three-year and five-year increments. Of course, financial planners are focused on things that have a financial implication to them, either an inflow or an outflow.

Don't let your life just happen to you. Take advantage of the opportunities!
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Preparing for the Next Five Years

For 2014:

• If you are working, what will your income be over the next year? Are you expecting any potential pay increases, bonuses or stock option expirations?
• Do you have any debt, like student loans, car loans or home equity loans scheduled to be paid off? What will you do with the new found monthly money?
• Make a list of any home maintenance or improvement projects that you need to do or would like to do. You can't take on everything at once, so prioritize projects and space them out. Don't succumb to the advertising that says, "always keep improving," but don't defer needs so long that they become financially insurmountable.

For two to three years out:

• Are your kids going to college or graduating?
• Any potential weddings on the horizon?
• Any term life insurance policies expiring?
• Is it time to look at long-term-care insurance?
• Is it time to plan on replacing a car?
• Any special family birthday or anniversary celebrations?

Four to five years out:

• Depending on your stage of life, is it time to think about moving? You may need to consider downsizing or moving to a retirement community.
• Where are you on your "glide path" to retirement?
• Do you have any special travel plans? What's on your "bucket list"?

The lists could go on and on and be much more encompassing, but you get the point.

Don't Put Off Planning for the Future

Don't let your life just happen to you. Don't assume your spouse or significant other or family know what you are thinking either. Take advantage of the opportunities! 

New Resolutions for 2014: Keep It Simple!

Take baby steps with your New Year's resolutions,
and you'll be more likely to see success.

Happy New Year 2014!

'Tis the season for New Year's resolutions!

But first, how did you do with your 2013 resolutions? Oh, you didn't lose weight, exercise more often, spend more time with family and friends, save more money, go to church more often, get organized and become a perfect person? Join the crowd!

Baby Steps for the New Year

Let's keep it simple and take baby steps in 2014:

1. Identify one way you know you spend too much money and eliminate it or cut it back. Are you forgetting to use restaurant coupons, clicking on Amazon too frequently, or buying clothes you rarely wear or stuff you rarely use? Pick one bad habit and kick it.
2. Increase your 401(k) or retirement plan contribution by 1%. Better yet, increase it by more than that, but make the increase at least 1%. Pledge to do this every year and your retirement goals will become much more achievable.
3. Save mother earth and your green cash by doing at least one environmentally friendly thing. Reduce, reuse, recycle. Install a timer thermostat, check the setting on your water heater, or weather strip a door or window. Reduce your driving and let up on the lead foot. Don't let the water run and be prudent with your landscape watering. Take care of your trees and plant a new one. Start a compost pile. Pick one thing and do it.
4. Take control of your "daily money management" by exploring technology to simplify it and help you track your spending. Use Quicken or Mint.com to see where your money goes, use your bank's online bill pay to save postage, and automate as many routine transactions as possible. Start using a password management program. Pledge to check and compare your income and expenses once a month.
5. Increase your financial peace of mind. Recognize the difference between what you can control and what you cannot control and don't worry about the latter. Concentrate on what you can control: maximize your income and minimize your income taxes and expenses. Have realistic expectations. Take a baby step (or more than one) towards financial peace of mind.

Live a Life of Gratitude

In closing, live a life of gratitude in 2014. No matter how bad or difficult you think things may be, there are many people who are not as fortunate as you. Ironically, in many cases, people who live in poverty are happier than people who live in abundance. They don't have much, but they are thankful for what they have and don't worry about what they don't have.

Keep it simple in 2014, take baby steps, and have a happy New Year!
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