December 17, 2015 2:00 am
"It's time to think differently about how to achieve long-term financial fitness," says Schneewind. "Like binge diets, taking a short-term view of your finances often leads to inconsistent results. You can resolve to spend less and save more, but the best way to achieve lasting results is by working with a financial advisor to create a plan that's tailored to your whole financial picture and unique goals."
To develop your plan, Schneewind says, simply remember the acronym PLAN:
Prepare – Start getting your financial house in order today so you can be better prepared to build (and stick to) a plan that will work for you. Consider scaling back your holiday spending by 20 percent to start your financial plan with a bang in the New Year.
Learn – The less we know about money, the more we stress about it. Learn the 50/20/30 approach to your income: 50 percent of your take-home pay should go toward essentials like your mortgage and utilities, 20 percent for investing in your future, and 30 percent for discretionary spending, like vacations, shopping and fun.
Act – It takes, on average, 30 days for a new habit to stick. Establish a daily routine of reviewing your checking account to see how you're performing against your budget. Each day, reflect on one thing you did to help build your financial confidence, like reading a money blog or talking to a friend for advice.
Network – We all know it's easier to stick to an exercise program with a buddy, and the same holds true for your finances. Use the brain trust around you and network your finances with friends. The more you talk about money, the more it can help you increase your overall financial confidence.
Source: Northwestern Mutual
Published with permission from RISMedia.