Jan 7, 2008 7:34 am US/Central
Financially Fit: 5 Tips To Improve Monetary Health
(WCCO)
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Financial planner Shawn Jacobson's first piece of financial advice is to write down your goals. (File)
AP
This first week of the year a lot of people are focusing on how they can be better. The trouble is they can get discouraged and give up until next year.
It's not too late to start making a change or restart if for those who have already fallen off the resolution wagon. There are a lot of people who want to lose weight by eating less and exercising more, but a few people are like Sara Walters. She wants to get in better financial shape.
"Working downtown I spend a little bit on coffee and lunch and shopping at Target," said Walters. "So I'm trying to tighten the purse strings a little bit."
Financial planner Shawn Jacobson gives his two cents worth, as the 2008 president of the Financial Planning Association of Minnesota.
His first piece of financial advice is to write down your goals.
"It makes it real, once it gets on paper, it seems more real," he said. "It's amazing how powerful writing things down can be."
Jacobson's second tip is to protect what you have.
There are many kinds of insurance: car, home, life, disability and long-term care. The trick is figuring out what's needed and how much.
"They may be paying their insurance without knowing how much their home is insured for," said Jacobson. "Take the time; find out what your insurance actually covers."
His third tip is to evaluate your debt.
"For most people, the best financial strategy is trying to eliminate their debt," said Jacobson.
However, what if your credit card debt is just too big? If your rate is very high, Jacobson recommends asking creditors for relief.
"Maybe that first call should be to the credit card company to see if they'll lower the interest rate on your card," he said.
Sometimes the stock market seems like a roller coaster. It's important not to be afraid of investing whether it be saving for retirement or your children's college.
"Stay invested and keep investing," said Jacobson. "I think this could be a very good time to be putting more into the market."
If you want to turn your $10s into $20s, but you're just not sure how, Jacobson's got one final word of advice: Ask for help.
"A lot of people can do it on their own," he said. "And then a lot of people think they can do it on their own."
Just like finding a plumber or mechanic, it pays to ask people to recommend a financial planner who's done a good job for them.
There's also a find-a-planner tool on the Financial Planning Association's Web site.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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