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Makeover Your Finances in 10 Simple Steps! Courtesy of Women & Co

1. GATHER YOUR FINANCIAL RECORDS.
Gather pay stubs, insurance documents, credit card statements, bank statements, household bills, receipts from groceries, and other purchases. Then determine whether your important papers should be stored in a bank safe deposit box, a fireproof box at home, and/or with a trusted lawyer, relative, or friend.

2. TAKE INVENTORY OF YOUR FINANCIAL AFFAIRS.
Use your financial records to calculate your net worth (see the Net Worth worksheet on reverse), which will tell you the difference between what you own (assets) and what you owe (liabilities).

3. CALCULATE YOUR CASH FLOW.
Make a detailed list of what’s coming in (income) and what’s going out (expenses). By subtracting your total expenses from your total income, you’ll determine your cash flow. If the number is positive, you have a surplus, which provides an opportunity to pay off debt or save more. If the figure is negative, look at your expenditures to see how you can reduce your spending.

4. IDENTIFY AND PRIORITIZE YOUR FINANCIAL GOALS.
Short-term goals are those you’d like to accomplish within one year (e.g., pay off credit cards); mid-term goals, within 5 years (e.g., make down payment on a new home); and long-term goals, 5 years or more (e.g., saving for retirement). Look to your financial professional to help you determine the time frame for each goal, its estimated cost, and ways to save.

5. ESTABLISH A BUDGET.
By allocating specific amounts to your expenses and goals, you will know where your money goes. With a personal budget in place, you will be able to see how realistic your financial goals are and how long it will take to reach them.

6. FOLLOW YOUR BUDGET.
Keep receipts to track your spending. Review expenses monthly. Evaluate your progress regularly. Consider setting aside a rainy day fund to act as a cushion and help you weather a storm, should you experience a dramatic life change.

7. CHECK YOUR FINANCIAL REPUTATION.
A strong and accurate credit report is one of your most important financial assets. It not only gives you a clear picture of your credit rating, but also may reveal discrepancies or potential problems that can bar you from access to further credit. Review your credit report
each year for accuracy and then notify the appropriate agencies of any discrepancies.

8. RECOGNIZE SIGNS OF FINANCIAL DANGER.
Are you missing or making late payments, withdrawing funds from your savings to cover basic bills, or using cash advances from one credit card to pay another? Have you exceeded your limit on a credit card or been denied credit for a purchase? If so, it’s time to reevaluate your finances and put together an action plan.

9. PROTECT YOURSELF.
If you don’t have a will, living will, or health care proxy, speak to an attorney to help ensure that your assets will be handled according to your wishes. Having these documents can allow your loved ones to understand your wishes if you become ill, incapacitated, or pass away. Dealing with these issues today may help you and your loved ones breathe a lot easier in the future.

10. STAY INFORMED AND ENGAGED.
As you move through life and circumstances change, it’s important to periodically review your goals and objectives at least once per year, as they will likely shift over time.


Women & Co. is a membership service that provides financial education and related resources intended for informational purposes only. No feature of the membership shall constitute an offer
or solicitation with respect to the purchase or sale of any security. Women & Co. makes no guarantee about the accuracy of information provided by any third party. You should consult with your personal advisors about your particular situation.

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