Make your financial plan work for you with these 8 steps - Business Insider

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8 smart tips from personal finance experts to make the best decisions with your money right now MasteryourMoney

Kelly Lannan, vice president of Young Investors for Personal Investing, a unit of Fidelity Investments,. Table of Contents:Use the tools available, and the ones you like bestInvesting is for everyone, not just the wealthy Uncertain times are great for starting or changing your plan

"I think as a result, we're seeing that response through the poll that people are taking a step back and effectually, as I say 'Marie Kondo-ing' their financial situation, and really trying to take the time to understand exactly how their finances are shaping up today, as well as what they can do to improve, hopefully in the future."

"Think about everything else you plan for in your life, whether that is what you're having for dinner on a Wednesday night or what you're going to wear," Lannan said. "That's how you should also approach your finances."N'Jie-Konte, founder of Dare to Dream financial planning, graduated from college during the Great Recession and remembers how difficult it was to wrestle with finances during that time of economic uncertainty.

"A lot of times we can kind of coast along with our finances," she said. "We might be paying our bills on time ... maybe we just are contributing the minimum to get a match or a 401, which is fine, or making the minimum payments on our student loans. While anxiety-inducing to some, those that prefer the manual, "old school" route have found them to be useful inOthers who like it "new school" should consider apps that alert overspending and even make budget adjustment recommendations based on spending trends. Business Insider hasThen, there are those that want a mix of both. Using a spreadsheet is a great starting point for seeing an overview of your money.

Our fearless experts offered two ideas for making allocations for your money with each paycheck, to help you keep pushing towards your goals. 50% goes to essential expenses like rent, utilities, and food.5% to your emergency fund. This is a starting number, but you can adjust depending on your fund goals.

One consideration is the hard costs from the outset. The mortgage payment is far from the only expense. "There are closing costs, there are lawyers' costs, there's insurance. [And,] a lot of people don't buy homes in super perfect condition," Lannan said. "There's a lot that comes into owning a home besides just the down payment. So you really kind of have to take a step back and understand if it is the right timing for you.

"I do just want to share and clear up a common misconception," Lannan said. "If you have an investment account or if you have a workplace retirement plan, something like a 401 or 403, guys, congratulations, you are an investor." "So it's up to you to create that portfolio and have that investment portfolio to support yourself and help you achieve your goals."

 

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