The New Year is a great time to take a look at your financial situation and make changes for the better. While people often associate wealth and security with good luck, it’s often a matter of good financial planning!
To help you, we’re sharing new information from Consumer Reports. Their February 2013 issue lists the “money stumbles” that can cause major setbacks in household wealth. We have turned it around to explain what to do right! The following list shows that if you want to get ahead in the DC Metro area, you should start with protective measures!
7 Critical Steps to Protect Your Finances
1. Update Wills and all beneficiary information. According to a 2012 survey by Consumer Reports, 86% of Americans have not updated their wills or other estate-planning documents within the past five years. Make sure your legal documents, life insurance policies, investment accounts and retirement plans have the proper information.
2. Share important information with your family. If the unexpected happens, does your family know where to find insurance and bank account information? Have a single, designated location, such as a safe deposit box, for important documents and make sure family members can access it.
3. Make the most of your 401(k). Set aside at least 6% of pre-tax income to maximize the benefits of your employer contribution. Pay attention to your plan’s performance and management expenses.
4. Have adequate home insurance protection. Check your homeowner’s insurance policy to make sure you are covered for full replacement cost of your home, and full replacement coverage of your personal property. You should also have coverage to protect you from liability lawsuits.
5. Plan for emergencies. Have 3 to 6 months of living expenses set aside. Make sure you have essential records in a secure place.
6. Check your credit report at least once a year. Even if you believe your credit is good, checking your credit history on a regular basis can help you nip fraudulent activity in the bud.
7. Manage debt wisely. Credit card debt is easy to accumulate but hard to pay off. If you have revolving debt of $10,000 or more, it’s time to create a debt reduction strategy. Also, if you or a family member will be attending college, avoid expensive bank loans and seek financing through Sallie Mae.
New Year, New Opportunities in DC Metro Real Estate!
If you haven’t been perfect with your finances, you’re not alone! The Consumer Reports survey found that 62% of respondents admitted making a big financial mistake at some point in their lives. The cost of the mistakes were $10,000 or more for the majority of these respondents. Start fresh in 2013, and resolve to put your finances in order!
We hope this information helps you! And when you need information about DC Metro area real estate, turn to us for the high quality service you can count on. We always have the latest reports on market conditions as well as DC area home sale statistics.
Whether you are buying or selling a home or just have a few questions, contact us for expert real estate guidance!
All of us at The Estridge Group wish you a very happy and prosperous New Year!
Melinda Estridge
The Estridge Group-Long & Foster Real Estate, Inc.
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