In the first episode of 2021, I sat down with our newest co-host and fellow financial advisor, Jacqueline Schadeck to bring our listeners a step-by-step guide on ways that you can set yourself up for financial success this year. 

  1. CONDUCT A FINANCIAL AUDIT

You can’t know where you want to go without looking at where you are. 

Go in and look at your numbers right now

    • How much cash do you have allocated?
    • How are your investments doing? How are your stakes?

2: FIGURE OUT WHERE YOU WANT TO GO IN 2021

What specific financial goals do you have? What’s the easiest way to achieve them? 

Reverse engineer your goals: start at the end and then work backwards from there. 

    • Breaking down your goals as finite as possible to remember how attainable it is. 
      • Tie it down to something that’s more meaningful to it. 
      • Attach your goal to something qualitative. 
      • For example, everyone wants financial independence, but what exactly does that mean for you? 
    • Give a title to the accounts that you have so that your qualitative goals are more real for you
      • Job loss, no income. 
      • Expenses we expect to happen ex: vehicle taxes, a major surgery, 
      • Everyday spending money
      • Vacations
      • Treat it like a bill. It’s mandatory. 
      • Emergency Fund: 
      • Emergency Reserves: 
      • Variable spending account: 
      • Major Expenses: 
      • Investments:

 

  1. Save for your taxes
      • Run back through 2020 finances and see what you didn’t have withheld so that you know what you’ll owe the IRS. 
      • If you’re due a refund this year, have a game plan for what you’re going to do with it. 
  1. Plan Out Your Savings:
      • Get a little more granular 
      • At what point do you want work to be optional? 
      • Consider no longer using the word retirement and instead think of it as “financial independence”. 
        • What are your retirement accounts? 
        • What makes sense for you to invest? 

 

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