10 Steps to Financial Success
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10 Steps to Financial Success

Below are 10 basic things you can do to take charge of your finances. If you would like more help, consider turning to a certified financial advisor. Either way, what happens to your money is your decision. The most important thing you can do is educate yourself so you make the smartest choices for your family and your future.

1. Get organized. Gather all of your important legal and financial documents-like account statements, tax returns, insurance policies, deeds, titles and wills. Keep them in a safe place and make copies. Create a contact list with the names, numbers and emails of any professional advisors you might have-like accountants, financial planners and lawyers. And make sure a trusted family member, friend or lawyer knows where you keep your documents. You might even want to have them keep duplicate copies for you.
2. Know what you need. Start by listing all of your necessary and fixed expenses. Then add those extra items that allow you to live comfortably to determine how much money you need each year.
3. Know what you have. Make a list of all your income and assets including social security, 401(k) plans, pensions, savings accounts, certificates of deposit, savings bonds and IRAs. Remember to include income from rental property, stocks or other investments. Read all of your statements carefully and immediately report any mistakes or inaccuracies to the plan administrator.
4. Track your spending. Write down everything you spend for three months. You will probably be surprised how much you spend on things you don't really need. Once you have cut down on some unnecessary spending you can put that money towards your savings. You may have to adjust your habits or give up a few luxuries, such as weekly dinners out, to save more money-but it will pay off in the long run!
5. Reevaluate your financial plan. Your financial needs may change throughout your retirement, and the market definitely will. Reevaluate your retirement savings plan each year to make sure you are staying on track.
6. Pay off your credit cards. Credit cards can be amazingly convenient, but carrying over debt from month to month can cost a lot in interest charges. So make it a priority to pay off your credit cards.
7. Understand Social Security benefits. Social Security was never meant to be the only source of income when you retire. It should represent about 40% of your income during retirement, with the rest coming from your own personal savings and other resources.
8. Automate regular bills and deposits. Most banks offer automatic bill pay, a service that automatically sends payments for regular monthly bills, like your mortgage and utilities. Contact your bank to learn more. You can also sign up to receive direct deposits for checks you would normally receive in the mail, like pension checks, Social Security and Supplemental Security Income (SSI). Direct deposit eliminates the risk of stolen checks, reduces fraud and gives you more control over your money. 
9. Prepare for the unexpected. Consider opening a joint account with a relative so that person can help you pay bills. You can also designate a family member or friend to serve as the representative payee for Social Security payments, if you find that you are having a hard time managing your money.  Always make sure the person is someone you trust and that you talk with them about how you would want them to handle various situations.
10. Protect your money and your identity. Identity theft is a growing phenomenon. To protect yourself, make sure to order a copy of your credit report each year. Go to www.annualcreditreport.com for your absolutely free by law credit report. Or call 877-322-8228 to get the forms by mail. If your identity has been stolen, your credit report should contain evidence of someone else using your name or Social Security Number to commit credit or banking fraud. It will also show other Social Security Numbers associated with your name. If you think your identity has been stolen, contact your bank as soon as possible.

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Already in charge of your finances?

You may already be in charge of your finances and have a plan for the future. If so, congratulations! But have you shared your plan with your family? Do your loved ones know what to do if something happens to you? Letting a trusted friend, family member or advisor know your plans can help avoid potentially stressful situations and rushed decisions.

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Click here to order resources on managing your budget. 

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Helpful Links

Annual Credit Report

Direct Marketing Association

Financial Planners Standard Council

GoDirect

GovBenefits.gov

Social Security Online

Texas State Securities Board - Investor Education Program

WISERWomen

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