Financial fitness checklist

After reading A Complete Framework for Financial Planning I wanted to see how I was doing....

1) Set Up a “Budget” and Make Saving Automatic

* I try to set aside a little money into the Emerg fund Every month. It usually happens on the mid month paycheck.
* My percentages are out of wack. But I am getting better. I am not outspending as much every month. I have also created a Food budget. I am working at sticking with it. A little hard this month with lots of travel.

2) Pay off debt

* Mortgages/student loans - I do not have either. I only have HIGH BAD Debt. :-(
* I am working on paying off as much debt as possible. I am also looking at second jobs. I found some new resources thatnks to Boston Gal and I am looking at that further.

3) Establish/Maintain an “Emergency” Reserve Fund

* I have tons of unexpected things come up. I do see the value and I have begun building a balance. Based on my History I think I need $2000.00 saved. See side bar.
* Where? I have a savings account attached to my checking account. Once I have $2000.00 Saved I will begin saving in my Credit Union Account. It has higher interest.
* How much? Keep 3-6 months worth of expenses... This is very very hard. If I were to lose my job I would have to temp to maintain & fill in the gaps. This for me is a longer term goal.

4) Save for Retirement

* Why? Obviously, no one wants to work forever! I went to a retirement seminar last week. I am behind BUT not so badly that I cant make it back. The good news is that I have 25 years or so to work. My 401k from NC needs to be moved into my 403b. I will work on that in Oct/Nov.
* Where? I have a 403b through my employer who contributes 12% without my contributing anything. That is AWESOME!!!
* How much? Once the Debt is gone My goal is to contribute5% to the 403B and 5% to my 3-6 months savings. Until I have 3-6 months savings then I will put 10% into the 403b. Its do-able.

5) Establish Funds for other Goals

* Short term goals: I am adding to my emergency fund. And paying off debt.
* Long term goals: Down payment on a home. $40K (possibly 50k)
* Special goals: My daughter will be in college next year so a 529 is not possible. However, I want to help her pay off as much of the student debt as I can so she does not start off life in debt.

6) Additional steps to take:

* Establish good credit; I have decent credit and I continue to maintain it.
* Maintain excellent insurance coverage...
* Health - I need to upgrade my health ins.
* Work covers disability insurance.
* I have life insurance that will cover my daughter's college if anything were to happen.
* Car ins is paid for the fall, as well as rental.

*** I need to have a will ***

* Give generously; I gave to my school this year. it made me feel really good. Education is important to me and I wanted to give something back. So I did :-)


I am not a financial professional. If you are looking for financial advise you should seek it elsewhere. If you would like to join me on the journey, walk with me for a while and be my friend......