Getting Back to Basics

As we enter 2012, it’s a great time to make a fresh start and actually organize your financial life. Here are some tips to help get started:

• Create a budget. By setting and tracking income and expense categories, you not only keep your current finances organized, you can also set the wheels in motion for reaching long-term goals like buying a new house or financing college.
• Make it automatic. You’ll have fewer details to worry about by automating as many financial chores as possible. For example, you may be able to eliminate trips to the bank with automatic payroll deposit. Automating your monthly bills for things like cable, electricity and telephone service can also save you hours of valuable free time each month.
• Inventory your assets. A financial inventory provides a useful snapshot of your assets so you can understand where you are now and what you must do to reach your goals.
• File important documents. In addition to your financial inventory, keep other important documents like tax returns and statements from investment accounts organized and accessible. You’ll also want to keep insurance policies, wills, trust documents and other important paperwork safe and available to those who may need them.
• Computerize the process. There are a variety of software packages and on-line resources available to help you keep your financial life organized. Most of them are very inexpensive – and some are even free.

With the basics in order, you can focus more clearly on all the things you’d like to accomplish in the New Year.

Scott Berman is a Financial Advisor and Managing Director at Berman & Associates, a financial advisory practice of Ameriprise Financial Services, Inc.  Advisor is licensed/registered to do business with U.S. residents only in the states of CA, CT, DC, DE, FL, KY, MD,ME,MO, NC, NJ, NY, OH, PA, SC, TN, VA, WA, WV.

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients. 

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