Forget the mess on Wall Street; worry about your own wallet
The financial crisis on Wall Street might be getting under control, but money experts say a lot of us should still be concerned about our personal finances.
Instead of freaking out about Wall Street, financial advisers say focus on what's happening with your wallet.
Lenders are lowering limits. Creditors are circling the wagons. And Wall Street's causing retirement account jitters.
The jitters prompted Marsha Kremen to check in with her financial adviser. Like most other investors, her retirement savings are down for the year, but she's relieved.
"My portfolio's not down nearly as much as I thought it was going to be based on what I've been seeing in the markets," said Kremen.
Certified Financial Planner Kristi Mandt says instead of fretting about over things you can't control, take charge of the things you can.
Start by putting all your financial plans in writing. What is your retirement goal? What about major household or personal goals such as a new roof, college courses or family vacations?
Mandt says put them in writing along with a target date.
"Having a plan allows you to have something to fall back on, to look at and see where you are," she said.
Then, pay attention to where you put your money.
Go to the store and buy a small note pad. Use a string to attach the pad to a pen and carry them with you where ever you go.
Write down every penny you spend for one month -- bills, food, gas, entertainment, mortgage or rent, postage stamps, greeting cards, even restaurant and latte tips and the interest you pay on credit purchases.
"It's really easy to come up with extra money if you focus on the way money just sort of filters through your pockets." said Mandt.
Reduce your spending and increase your savings.
"An extra $100 a month or $200 a month can really add up," Mandt said.
Review the interest rates on your credit cards. If you have good credit and pay on time, call your and see if you get a lower interest rate. Then focus on paying off your debts.
If you can't pay off your credit card bill every month, don't use the card.
"Focus on paying the card that has the highest rate of interest," said Mandt.
Once you've paid off the highest interest card, Mandt says, double up on paying down the card with the next highest interest rate.
Review your insurance policies and make sure you're not paying for more insurance than you need. At the same time, make sure you're have adequate liability coverage so no one can go after your assets.
Finally, review and update your beneficiaries. Double check the designations on your retirement accounts, your life insurance and your will.
Outdated beneficiaries could mean your money ends up going to someone other than you wanted, especially in the case of divorce or death.
Wall Street meltdown aside, the fact is many of us are losing money daily by ignoring other parts of our personal finances.
Where your investments are concerned, experts say just make sure you're diversified, and the degree of risk is in line with your comfort level and your overall retirement goal.
Instead of freaking out about Wall Street, financial advisers say focus on what's happening with your wallet.
Lenders are lowering limits. Creditors are circling the wagons. And Wall Street's causing retirement account jitters.
The jitters prompted Marsha Kremen to check in with her financial adviser. Like most other investors, her retirement savings are down for the year, but she's relieved.
"My portfolio's not down nearly as much as I thought it was going to be based on what I've been seeing in the markets," said Kremen.
Certified Financial Planner Kristi Mandt says instead of fretting about over things you can't control, take charge of the things you can.
Start by putting all your financial plans in writing. What is your retirement goal? What about major household or personal goals such as a new roof, college courses or family vacations?
Mandt says put them in writing along with a target date.
"Having a plan allows you to have something to fall back on, to look at and see where you are," she said.
Then, pay attention to where you put your money.
Go to the store and buy a small note pad. Use a string to attach the pad to a pen and carry them with you where ever you go.
Write down every penny you spend for one month -- bills, food, gas, entertainment, mortgage or rent, postage stamps, greeting cards, even restaurant and latte tips and the interest you pay on credit purchases.
"It's really easy to come up with extra money if you focus on the way money just sort of filters through your pockets." said Mandt.
Reduce your spending and increase your savings.
"An extra $100 a month or $200 a month can really add up," Mandt said.
Review the interest rates on your credit cards. If you have good credit and pay on time, call your and see if you get a lower interest rate. Then focus on paying off your debts.
If you can't pay off your credit card bill every month, don't use the card.
"Focus on paying the card that has the highest rate of interest," said Mandt.
Once you've paid off the highest interest card, Mandt says, double up on paying down the card with the next highest interest rate.
Review your insurance policies and make sure you're not paying for more insurance than you need. At the same time, make sure you're have adequate liability coverage so no one can go after your assets.
Finally, review and update your beneficiaries. Double check the designations on your retirement accounts, your life insurance and your will.
Outdated beneficiaries could mean your money ends up going to someone other than you wanted, especially in the case of divorce or death.
Wall Street meltdown aside, the fact is many of us are losing money daily by ignoring other parts of our personal finances.
Where your investments are concerned, experts say just make sure you're diversified, and the degree of risk is in line with your comfort level and your overall retirement goal.