5 Financial Habits You Should Start Today

Good financial habits are helpful to your financial success and there are five habits you can start today that will help you reach the financial future you are looking to achieve. It is always a good time to start new habits, but depending on the person, habits may take 21 to 60 days to become a part of your daily life. Once they are implemented, they tend to stick around for the long term.

Here are five habits that will help you attain both your short-term and long-term goals.

1. Create a Budget

Take stock of how much income you have coming into your household each month and what expenses your income is paying each month. You can do this by simply putting pen to paper or utilizing an online tool that will track this for you. Each month, review the expenses and see if there are items that can be reduced or eliminated. For instance, you may have forgotten about automatic monthly payments set up for services you no longer use. This will put you in a position to review each expense and make sure it is a necessary one for your household. In addition, you will have an excellent view of whether or not you are cash flow positive (having more income than expenses each month) or cash flow negative (having more expenses than income each month). (For related reading, see: Financial Planning: It's About More Than Money.)

2. Start and Maintain an Emergency Fund

Years ago, our parents and grandparents frequently spoke about saving money for a rainy day. The modern day term is an emergency fund. Your employment status, whether you are an employee or own your own business, and your level of comfort will dictate what size emergency fund you should maintain. Each person is different, and we have recommended anywhere between a six month to 18 month emergency fund for clients.

This is money that should be kept in a separate account from the account by which you pay your monthly bills. This account should be liquid, meaning you can use the money on a moment’s notice if needed. A savings or money market account will work well for these monies. You will want to determine what size your emergency fund should be and begin to accumulate funds until you reach that amount.

Once you reach the desired amount you should only use these monies for an emergency. Things that may warrant you tapping into these funds may be the loss of a job or income, unexpected home or car repair, or simply any unexpected expense. After the emergency is paid for, you will want to replenish this account at your earliest convenience.

3. Pay Yourself First

Ideally you want to pay yourself first each time you get paid, and then learn to live on the monies that are left. There are a few ways to pay yourself first depending on your type of employment. As an employee, you will want to take part in your company’s 401(k) or retirement plan. A small business owner or independent contractor may want to consider setting up a retirement plan if they do not have one.

The last option would be for those that do not have or cannot set up a retirement plan. They would have to use either an IRA or brokerage account. A good target would be to try and pay yourself 10% of your pre-tax earnings if you are deferring to a retirement account, which is preferred. You may need to adjust this a bit if you are contributing after tax. (For more, see: Mistakes in Designating a Retirement Beneficiary.)

4. Review Beneficiary Designations Annually

We all face critical financial and life events that will impact us during the course of a given year. You certainly would not want your assets to end up going to beneficiaries which you did not intend them to go. Beneficiary designations should be reviewed at least annually or if you experience a major life event or change. Examples of times that you would want to review these designations would be: the birth of a child or grandchild, marriage, divorce, death, disability or job change. Whether you are digital or analog, place a reminder on your calendar to review this each year.

5. Rebalance Portfolio Annually

Rebalancing is something you will want to make sure you review at least annually - whether you manage your portfolio yourself or use an advisor. Typically rebalancing has a tendency to get forgotten when markets are going up because people tend to get complacent and think there may be no risk in waiting. Rebalancing will help you maintain your portfolio allocation and risk with its intended targets.

You may recall back in the late 1990s, when technology investments were booming, the technology bust. There were many investors that saw their portfolio's asset allocation change from 10% allocation to technology stocks to 70% in a relatively short period of time. In many cases this large allocation to technology was a huge overweight, meaning more money was allocated to that sector than you initially intended. This was great while those securities were doing well, but what these investors did not realize was the risk they were imposing on their assets. When the technology sector busted they had 70% of their portfolio at risk instead of the original 10%. Had they rebalanced along the way, a good deal for this risk could have been avoided.

Implementing these five simple habits will help you reach both short and long-term financial goals. (For more from this author, see: The Importance of Rebalancing Your Portfolio.)

Disclosure: This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

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Personal Finance Basics for Millennials

For many Millennials, personal finance can be hard to understand most often because they lack basic education of the topic. There aren't personal finance classes in high school, college or business school that taught them the basics of financial literacy. It's understandable that they might be lost. Personal finance should be easy to understand, so it's easy to succeed. In order to succeed, Millennials need to understand their personal financial situation and some basic personal finance concepts in order to develop better habits.

Here are five personal finance basics for Millennials.

1. Set Goals

Think about what your short and long-term goals are. For some Millennials, experiences may be more important than saving for things such a home or retirement. Your goals can be whatever you would like them to be, but you must identify, quantify and prioritize them. Think about weighing your short-term goals more heavily than long term. You have more time than your parents do to achieve your goals. (For more from this author, see: Savings Options for the Self-Employed Millennial.)

2. Master Cash Flow

Spend some time with your cash flow to get a handle on monthly expenses including student loan debt, credit card bills and other obligations. You will need to have a plan for these before you can move on. Create your budget and see if you can stick to it for three to six months. By understanding your cash flow, you can be disciplined so that when extra income comes in, you can afford to save it towards your goals.

3. Build Emergency Savings

Having an emergency fund that can cover three to six months of living expenses is essential. Life happens. If you lose your job or a medical need arises that emergency fund will come in handy. You don’t want to be caught off guard and not be able to come up with needed funds.

4. Save for Goals

If you have mastered those steps, you can move on to saving for your goals. Some short-term goals may require money to be kept on hand in cash if you can’t afford to take a risk on that money. But long term goals, such as retirement, require taking some risk. Even if you can’t save much in a retirement account, something is better than nothing. And if your employer provides a match, try to contribute enough to get that free money. You have lots of time before retirement so by starting to save now, you can take advantage of compounding to grow your assets. If your employer doesn’t offer a plan, there are ways to save on your own through individual retirement accounts (IRAs) or Roth IRAs.

5. Find Consistency 

It’s up to you to determine what your goals are and how you are going to save for them, but you must be in control of your money. Build good money habits now that will grow with you as life gets more complicated, and it will. Marriage, a home and kids can all make managing your personal finances more complicated but if you established good habits in your 20s, then it will be easier to maintain them. As you advance in your career or work a side hustle, you will also be able to put aside more money towards those big goals.

Understanding personal finances and developing good habits is key to Millennials successfully managing money in the short and long term. (For more from this author, see: Retirement Planning for Millennials Now.)

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How to Transfer Financial Values to the Next Gen

Some wealthy families remain wealthy for many generations because they’re able to sustain intergenerational financial values. Although it isn't easy, these values can be passed down through what you say and what you do to successive generations, or else they may not survive a generational transition. Financial values and guiding principles can become murky or even lost if they’re not articulated, discussed and nurtured.

Creating a Family Guide

In order to keep these values alive and well, it’s best to write them down for reference by current and future generations, thus guiding the values-based pursuit of financial goals in the family tradition. This can be accomplished through a dedicated document or as part of a more comprehensive statement of family values. The latter, a concept I developed for clients, is what I call the family guide. This is a living, breathing record of principles and beliefs of all sorts to follow in pursuing various types goals, financial and otherwise, consistent with the practices and positive examples of past generations. (For more, see: Tips for Family Wealth Transfers.)

As financial values are often a natural extension of broader values, a family guide is a natural context for outlining the thinking and practices that have long served as wellsprings of family wealth. Each generation can have a proven blueprint for success in making choices as stewards of family wealth today and for future generations. This ancestral record can include principles for investing, financial planning and wealth management - equipping future generations to carry on family traditions of financial success and keeping them from repeating costly mistakes made by forebears.

Key Topics to Include

These documents can serve as the collective family wisdom on what ancestors have learned about handling money. Key topics for these documents naturally include:

• An emphasis on saving and spending discipline - living well with one’s means to build wealth.
• The importance of understanding risk levels of different types of investments. Taking too much risk jeopardizes family wealth currently and for future generations. Taking too little risk can reduce potential returns because, over the long term, this can subject holdings to erosion from inflation.
• Having a distinct predisposition toward building wealth rapidly, with high risk, versus slowly with reasonable risk. Part and parcel of this is an awareness of prevalent fraudulent investment scams seeking to part the well off from their money.
• Understanding the importance of not just growing wealth through investing but also preserving it through such protections as appropriate insurance coverage.
• Understanding the spectrum of risk inherent in different types of investments. It’s crucial for future generations to understand what types of assets are completely safe, which ones are largely safe and which carry high risk. The names and structures of some investing vehicles tend to change over time, and more and more vehicles for holding assets are being created. Though the names and structures of vehicles may change over the years, many of the underlying assets tend to be basically the same from one generation to the next. The risks of these underlying assets and the rules of vehicles involved should be carefully considered before investing. (For more, see: A Quick Guide to High-Net-Worth Estate Planning.)
• Knowing your true tolerance for investment risk and assessing the risks of different investments against this tolerance.
• Spotting bubbles and realizing the perils of getting caught up in the investing herd that create them. This means having a sense of when valuations become irrational and unsustainable because they are clearly outside historical norms.
• Following a disciplined investing process, including consistent buy and sell disciplines. Those who buy high tend to be the last to buy and those who sell low tend to be the last to sell. Knowing when to buy stocks involves knowing that value and momentum indicate future performance - up to a point. Value stocks are no longer value stocks after their prices rise high enough and momentum eventually runs its course.
• Respecting individualism in investing. This can lead to a sound investing discipline rather than investing with the crowd - marching to a different drummer, as Henry David Thoreau famously wrote.
• The importance of listening to qualified financial professionals or doing your own solid research.
• Knowing what to look for in an advisor, such as a certain number of years of experience, and the right educational credentials and appropriate certifications or designations. Such credentials can help consumers discern professionalism among advisors.

Sustaining Family Wealth

By codifying and recording financial priorities and values, families can take an important step toward assuring that the principles that led to the creation of family wealth can live on to sustain it. And in the process, each generation can assure that they leave their heirs something more important than money - family values. (For more, see: Leaving Inheritance to Children Easier Said than Done.)

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How Financial Wellness Benefits Employees

Dealing with personal finances can be stressful. Stress can have a negative impact on employee performance, in addition to other areas of life like personal relationships and overall health. Whether it is worrying about debt, paying bills or planning for retirement, financial concerns are at the forefront of our psyche. One way that employers or business owners can alleviate some of that stress is helping their employees work toward gaining financial wellness.

A Lack of Financial Wellness

Unfortunately, many of us lack the knowledge, skill set or inclination to tackle the many aspects of financial wellness. A survey by the American Psychological Association found money was the top source of stress for American adults. From an employer's perspective, a financial wellness program can lead to a more productive, engaged and happier workforce. A strong financial wellness program can help employees develop skills to manage money, effectively budget, set short- and long-term goals and plan for retirement. (For more, see: Employee Financial Wellness Programs.)

According to a 2017 PricewaterhouseCoopers (PwC) survey, 53% of employees feel stressed when dealing with their personal financial situation and 46% say financial challenges cause the most stress in their lives. Twenty-two percent of those surveyed said financial worries have impacted their productivity at work, and 12% said they have occasionally missed work due to financial worries.

Financial concerns can include worrying about retirement, maintaining a certain lifestyle, paying off debt, being able to cover monthly expenses and not having adequate emergency savings. These concerns don’t only apply to employees with lower incomes. Forty-four percent of workers making more than $75,000 per year listed not having enough emergency savings as their top financial concern. For workers making less than $75,000, 54% had the same concern.

In a 2011 study, Aon Hewitt reported 28% of workers participating in a 401(k) plan through their employer had a loan outstanding. While usually a better option than withdrawing funds or cashing out the plan, taking a 401(k) loan can ultimately prove to be a retirement setback if the employee is younger than 59½ years old and can’t repay the loan for whatever reason. That money will then be treated as a taxable distribution with a penalty and won’t be available for retirement in the future.

Implementing a Plan

Implementing a financial wellness program to address these types of topics and concerns can help combat your employees’ stress levels and help make them more confident in their financial decisions. Starting a financial wellness program doesn’t necessarily mean it needs to becomplex and expensive plan. Oftentimes, simple suggestions on cash management, debt reduction and retirement planning can have a large positive impact for employees. 

A successful financial wellness program not only focuses on the broader financial wellness topics, it also focuses on the simple but effective techniques that can make all the difference including training to help your employees build skills in budgeting, saving, debt reduction, retirement planning and helping them better prepare for unexpected financial emergencies. This approach can be beneficial to all employees and can be particularly useful to employees in their 30s and 40s who have many years to go before retirement.

Employees in their 50s and 60s who are closer to retirement can also benefit from these budgeting skills, and they will likely see value in retirement planning that can help them map out the next stage of their lives. The goal is to help your employees feel confident they are making the right financial decisions for the short- and long-term. Implementing a financial wellness program as part of your firm’s existing employee benefits program can help your firm and employees plan for a prosperous future together. (For more, see: Starting a Business? Embrace the Discomfort.)

Disclosure: David Chazin is a registered representatives of Lincoln Financial Advisors. Securities and advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln Marketing and Insurance Agency, LLC and Lincoln Associates Insurance Agency, Inc. and other fine companies. Insight Wealth Strategies is not an affiliate of Lincoln Financial Advisors Corp. Lincoln Financial Advisors does not provide legal or tax advice. 3000 Executive Parkway, Ste 400. San Ramon, CA 94583. (925) 659-0217. David Chazin’s CA Insurance License #0D45501 CRN1975657-121917

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Beyond Your Bank: Getting a Small Business Loan

Whatever the state of your business, a small business loan can provide the capital you need to help achieve your goals. Applying with your bank might seem like the obvious way to go. It allows you to keep everything under one roof, helpful for busy entrepreneurs who need to keep things organized. But it might not be the best way to go, because you could miss out on better options and products from other providers.

It’s well worth looking at all your options so you can get the best terms and rates. Here’s how to find the best small business loan option for you, and how to decide if it makes sense to get this type of financing in the first place.

Does a Small Business Loan Make Sense?

First, make sure a small business loan is your best option. Small business loans are not the only way to fund and run your business. Depending on your long-term goals, you might opt for a line of credit, get a small business credit card or even seek out investors. Before you borrow, consider the potential downsides. For one, you may have a hard time getting approved if your business doesn’t have established credit and your personal credit isn’t great. Some lenders require collateral for a small business loan, which you lose if you default on the loan. A loan may be a source of unnecessary risk and expense if you can raise the money through revenue and profits instead. Additionally, paying that loan back is a long-term financial commitment. If your profits can’t keep up, it could put you in a precarious position. (For related reading, see: 4 Steps to Getting a Small Business Loan Without Collateral.)

Why You Should Consider This Form of Financing

That said, there are plenty of good reasons to leverage a small business loan. First, small business loans can be a type of good debt. Good debt is a small liability with calculated risk, which you then leverage as an investment. Your business is an asset with the potential to appreciate in value. A small business loan allowing you to do so can be a great financial tool. Typically, small business loans offer lower interest rates than small business credit cards. If you need financing, it may be less expensive for you.

It may also be a better route than seeking out investors. Unlike investors, commercial lenders don't want a say in how you run your business. Other than your terms of repayment, lenders don't take a percentage of your profits. And finally, a loan can help you build up your company's credit history, which is separate from your personal credit history.  

Best Small Business Loan Options to Consider

If you’ve decided getting a small business loan is right for you, here are the top three lenders you can consider in your search. Depending on your needs and where you are in your business, one of these options might be best for you over the other two. Even after you check out these options, don’t hesitate to shop around and compare rates if you know of other lenders you might want to work with.

If You’re Just Starting Out: SBA Microloan

When you’re starting your business, it can be extremely difficult to find a bank willing to lend to you. The bank doesn’t have any credit history to consider when determining whether or not you’re a risky borrower (which also influences the interest rate they’ll offer you). You can go through a qualified local lender to apply for a Small Business Administration (SBA) microloan if you’re in this situation. You can borrow up to $50,000, but the average loan in the program is $13,000.

These loans are also fairly cheap, with interest rates running between 8% and 13%. The specific rate you qualify for will depend on the lender you choose, your credit history and credit score, and how much you request to borrow. The SBA microloan program allows for repayment periods up to six years—although, like your interest rate, that will vary from borrower to borrower. Expect to put up collateral to qualify for this loan and meet the lender’s credit requirements. Be aware it can take a while to get approved, too. You’ll want to plan ahead before applying. (For related reading, see: Expanding Your Small Business With an SBA Loan.)

If You Have Bad Credit: Fundbox

Don’t have business credit? Is your personal credit less than stellar? It can start to feel impossible to get a small business loan from traditional lenders. But you still have options. Fundbox doesn’t even have a credit score requirement for borrowers. The lender offers two different ways to get business financing: invoice factoring and a line of credit you can draw upon for a specific period. For invoice factoring, you can borrow up to $100,000. You have 12 to 24 weeks to pay off the loan. Fees start at 4.66% to 8.99%, depending on which repayment period you choose.

If you’d rather have a line of credit, Fundbox offers up to $100,000 for that as well. There’s no collateral required or even a personal guarantee. The lender typically charges a fee of 0.7% per week on the amount of credit you use. You’ll need to repay your balance within either a 12-week or 24-week period. That means withdrawing $1,000 will cost you $7 per week until you repay that amount in full. While Fundbox doesn’t require a credit check to apply, they do require you to have been in business for at least three months before they’ll consider your application.

If Your Business and Credit Are Well Established: SmartBiz

SmartBiz offers SBA 7(a) loans but without the lengthy application and funding process. You can borrow anywhere between $30,000 and $350,000 (or more if you’re in commercial real estate). Borrowers receive funds on accepted loans within seven days, and make payments over 10 to 25 years. SmartBiz loans are well worth considering because of their relatively low interest rates that range from 6.36% to 9.57%. You’ll need to check a number of boxes to qualify, however.

Requirements include:

• Owning a U.S.-based business for at least two years
• A personal credit score of at least 650
• At least $50,000 in annual revenue
• No outstanding tax liens, bankruptcies or foreclosures in the past three years
• No recent charge-offs or settlements
• Being current on any other government-related loans.

If you meet the requirements, SmartBiz is a solid option for your business financing.

What to Consider Before Taking a Small Business Loan

Whether or not your company's cash flow is stable, taking out a small business loan is a big financial commitment. You’ll want to ask yourself the following questions before you move forward and request financing.

Do You Have Cash Reserves?

If something goes awry and your cash flow dries up, that could put you at risk of defaulting on your loan. It’s wise to have cash reserves in case of emergency. If you don’t have reserves and your cash flow is irregular already, you might want to focus on building in a stable, reliable stream of revenue via other means before looking for loans.

What’s Your Credit Like?

There are some lenders that don’t require a credit check, but if you don’t qualify there for other reasons, your options dry up pretty fast. You need a credit history and a strong credit score to qualify for most loans. Consider taking a few months to boost your credit score to improve your chances of getting approved. You can do this by taking out a business credit card, making regular payments on your bills on time and in full, and by watching your credit utilization ratio (keep it at 30% or less). (For related reading, see: 3 Easy Ways to Improve Your Credit Score.)

How Much Money Do You Actually Need?

Don’t go into this decision without knowing exactly what you need (which might be very different than what you’d like to have). If you take out too much, you’ll pay more in interest (and might have a tough time paying back the full balance when it’s due). If you take out too little, you could fall short of your goals. Analyze your goals and current financial situation to determine the best dollar amount.

When Do You Need It?

Some lenders offer to fund within a week or just a few days. Others, however, can take weeks or even months to go through the application and funding process. Start the process well in advance of when you actually need the money and consider funding timeframes with each lender.

Do Your Due Diligence Before Applying

Taking out a small business loan is no small decision. To make sure you’re getting the best loan for your business, consider several lenders and their interest rates, fees and eligibility requirements. Make sure, however, to first consider the pros and cons of getting a small business loan and your financial needs when applying. If you do your due diligence, you’ll be in a better position to get the funding you need when you need it.

(For more from this author, see: How Small Business Owners Can Create Cash Flow.)

Disclaimer: The information being provided is strictly as a courtesy. When you link to any of these web-sites provided here, you are leaving this site. Our company makes no representation as to the completeness or accuracy of information provided at these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, sites, information and programs made available through this site. Registered Representative/Securities and Investment Advisory Services offered through Signator Investors, Inc. Member FINRA, SIPC, and Registered Investment Advisor. AspenCross Wealth Management is independent of Signator. 1400 Computer Drive Westborough, MA 01581

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The Importance of Durable Financial Power of Attorney

Most people are familiar with the concept of a power of attorney, a document that allows someone else to act on your behalf. According to legal definitions, the individual designating the power of attorney is the “principal” and the designated person is the “attorney-in-fact”. There can be multiple attorneys-in-fact, but of course they are making decisions in concert. The scope of the power can be limited or broad, but the purpose is for the attorney-in-fact to make decisions in the best interest of the principal. A broad power of attorney is an attempt by the principal to give their attorney-in-fact the same rights the principal would have if they were able to act on their own behalf.

What Does Adding “Durable” Do to a Power of Attorney?

A power of attorney goes into effect upon signing and terminates if the principal becomes incapacitated. Adding the durable specification means the power of attorney will stay in effect if the principal becomes incapacitated. There is also the option to add a “springing” specification, which means the durable power of attorney does not go into effect upon signing, but springs into effect if the principal becomes incapacitated. This addresses the situation whereby the principal wants to remain in control until they are unable to do so, and only at that point does the attorney-in-fact take over.

While this is efficient, a drawback of the springing specification is there could be disputes over whether or not the incapacity has occurred. In addition to the durable financial power of attorney discussed here (also called a durable power of attorney for finances), there is a durable medical power of attorney (also called a durable power of attorney for healthcare). (For related reading, see: Medical vs. Financial Power of Attorney: Reasons to Separate Them.)

With a durable financial power of attorney, the attorney-in-fact has the right to pay bills, deposit checks, file tax returns, buy and sell real estate, invest in securities, make gifts, and even sue, among other things. As one would expect, with the durable medical power of attorney, the attorney-in-fact has the right to make health care decisions for the principal in the event of incapacity.

The Benefits of Having a Financial Power of Attorney

Due to their different concerns, and even if the attorney-in-fact is the same for both of them, these two documents should be drawn up separately for purposes of privacy and simplicity. Families can benefit from having a durable financial power of attorney in place if there's a significant chance that an older family member will become incapacitated due to disability, illness, or age. A durable financial power of attorney can prevent the family from having to go through the court system to appoint a guardian or conservator to manage the principal’s financial affairs.

Additionally, a durable financial power of attorney can make it easier for a family member to take the helm and avoid conflict with other family members. You don’t have to be older to benefit from having a durable financial power of attorney in place, because you never know if an accident might happen that could lead to your own incapacity and leave financial chaos behind.

For example, it’s common for spouses to have durable financial powers of attorney for one another in case something happens to one of them. In community property states especially, many transactions require the signature of both spouses, so it's prudent for spouses to confer durable financial power of attorney upon one another. Some community property states such as California already provide that if one spouse becomes incapacitated, the other spouse automatically assumes the management of the community property. In this case, to avoid conflict, it is important the other spouse and the attorney-in-fact are the same person.

In your suite of estate planning documents, a durable financial power of attorney could be an essential one to avoid having a court appoint who will take care of your finances when you are no longer able.

(For more from this author, see: Medicare: Understanding the Basics.)

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Control What You Can for Financial Success

When I played with the Ottawa Senators, my coach often told us to stay focused on what we could control. In hockey, a lot can go wrong—the team could suffer through a string of bad luck with injuries, we could be bothered by the ice condition, etc..

Many people get frustrated and angry when such situations arise. But with experience, we came to understand our success depends on powering through adversity by preparing for the worst and planning for the best. Here are three ways you can apply this advice to your financial planning so you are prepared for those factors beyond your control:

1. Live Within Your Means

Many people complain that they can’t seem to save. They often point their finger at the fact they haven’t received a raise in a while. It can be frustrating to dedicate a lot of time to an employer who doesn’t seem to appreciate the value you bring to the table, but that’s for another discussion. When it comes to creating a budget and having enough money to save for future goals, focus less on the income you are making and pay attention to your expenses instead.

Many financially successful people are able to accumulate a nice nest egg with lower salaries. You can’t really control the income you make, but you can control the way you spend it. (For more from this author, see: To Save More, Focus on Your Needs, Not Your Wants.)

2. Spend One Hour of Your Day Learning

Getting a promotion often comes with a raise, which is great. However, there are a lot of factors affecting your chances of getting a promotion. Most of these factors are beyond your control, so you shouldn’t worry about them. Stay focused on what you can control, which is your dedication to the quality of your work and your education. Take an hour a day to continue learning about your craft and become an expert in your field. If you are able to accomplish that, the work opportunities and raises will come.

3. Invest in a Strategy That Makes Sense to You and Stick With It

Many people stress about the markets. They watch financial news and check their accounts every day. However, the biggest investment mistake comes when investors change their asset allocation at the wrong time, taking more risk at the top of the market and reducing risk after a large sell-off. Focus on what you can control. It is nearly impossible to know what the markets are going to do, however if you invest in a strategy that makes sense to you and stick with it, you will be able to avoid the biggest investor mistakes.

Control What You Can for Financial Success

A lot of things can affect our financial success. However, many of these factors are well beyond our control. The key is to put your time and effort into the things that will make you successful in your career, your finances and your life.

(For more from this author, see: How to Build Your Financial Foundation.)

Disclosure: MoneyCoach LLC and/or Patrick Traverse offer Investment advisory and financial planning services through Belpointe Asset Management, LLC, 125 Greenwich Avenue, Greenwich, CT 06830 (“Belpointe), an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration with the SEC should not be construed to imply that the SEC has approved or endorsed qualifications or the services Belpointe Asset Management offers, or that or its personnel possess a particular level of skill, expertise or training. Insurance products are offered through Belpointe Insurance, LLC and Belpointe Specialty Insurance, LLC. MoneyCoach LLC is not affiliated with Belpointe Asset Management, LLC. Additional information about Belpointe Asset Management is available on the SEC’s website at www.adviserinfo.sec.gov

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