Secure Your Finances Now – MYM2 EP 868

It’s Monday and welcome to Minding Your Money Mondays – Hi I’m Patricia Stallworth, your host. I’m the CEO of PS Worth a financial planning and education firm and the author of Minding Your Money.

Well, we’re heading into uncertain times, and one of the most common questions I get a lot  is: What can I do now to help ensure I can weather whatever comes? Or words to that effect.

Well, I think in this case, the best defense is a good offense – and that means getting back to basics. So here are 5 basics to help you get and stay on track to help secure your finances right now. So let’s dive in:

1. #1 Pay Yourself First.
   Instead of paying all your bills first and keeping whatever is left for yourself, flip the script. Prioritize setting money aside for your personal financial security before tackling other expenses. A good place to start using that money is to build, rebuild, or shore up your emergency fund. Advisors typically recommend saving 3–6 months of expenses, but because of these extraordinary times, I’m going to suggest that you aim for a year, if possible. A good place to keep a portion of your money is in a high-yield savings account and I’ll link some resources for these in the show notes. But if you want more specific advice for your situation, schedule a call and let’s talk.
2. Eliminate High-Interest Debt.
   it’s no secret that high-interest debt can drain your finances. So create a plan to pay it off as soon as possible starting with the debt with the highest interest rate. The less you owe, the more you’ll have to invest, save, or even enjoy life.
3. Maximize Your Retirement Contributions.
   If your employer offers a retirement plan with matching contributions, at the very least, contribute enough to take full advantage of the match. If your budget allows though, aim to max out your contributions to build a stronger foundation for the future. One of the things I hear so often is that people don’t contribute more than the match because they don’t see the benefit – well there is a real benefit. Money that you contribute to your retirement plan is deducted from your salary so that means that you get to save for retirement and you get to pay less in taxes at the same time. But the real story is what your contributions could be worth 10-20-30 years down the road.
4. Build a Diversified Portfolio.
   Diversification is key to protecting your investments from the unpredictability of the market. A diversified portfolio includes various asset types, such as stocks, bonds, or funds like mutual funds, index funds, or exchange-traded funds also known as ETFs. Funds, in particular, provide instant diversification with a single purchase because they include a not just one stock or bond but a bundle with hundreds of investments or more. Plus, they tend to be a lot less costly than purchasing individual stocks and bonds. The goal here is to spread risk and mitigate the impact of market ups and downs, especially the downs.
5. Finally, Diversify Your Income Streams.
   Explore ways to increase your income and reduce reliance on any single source, especially if you’re uncertain about your primary job. This could involve starting a side hustle, investing in passive income opportunities, or finding creative ways to monetize your skills.

And there you have it, five basics you can get back to help you feel more prepared and confident, no matter what lies ahead.

If you like this and want more, I would also like to invite you to visit www.psworth.com to learn more about our services and to become a ps:insider so you’ll receive extra insights, invites to events, as well as resources to keep growing your money knowledge base.

Remember, minding your money never goes out of style and if you don’t mind your money, someone else will and then they will control your future. Bye for now.