Alcoa, Tenn. — New Year’s resolutions are tough to keep. Most resolutions deal with losing weight or quitting smoking, but what about financial fitness?
“Wishful thinking won’t get the job done when it comes to improving one’s financial health,” said Hoy Grimm, managing partner at Alcoa, Tennessee-based LeConte Wealth Management.
In order to help community members make positive changes to their monetary belt, LeConte suggests following the below five simple steps:
Resolution No. 1: Take control of your financial future.
Stop hoping that you will have enough money (or income) to fund your future — start saving more money now. The economy may get better or it may get worse, but you can take control of your individual situation to prepare either way. Find the one thing that is sucking the financial life out of you and get rid of it! It could be a hobby, your house or your car.
Resolution No. 2: Take control of your spending.
If you do not know where your income is going, you probably won’t have any left to save! Look back at the money you spent in 2009. Find one habit, activity or thing that you paid good money for that you now regret. Resolve to replace it with one new behavior that will improve your financial future in 2010.
Resolution No. 3: Assess the limits of your fiscal self control.
Are you a saver or spender? Do you budget and balance your checkbook or do you rely on “retail therapy” more than financial discipline? Take some time at the beginning of the year to be realistic about your behavior and what you need to change to make 2010 a financial success. Either from a friend or professional, seek help in addressing your greatest behavioral weakness. Do you realize that large retail businesses spend millions on research, store design and product displays to induce you to spend more than you intend? You can counter this by not giving them the chance to work their marketing magic. In other words, stay off the enemies “turf.”
Resolution No. 4: Take control of your credit score.
For better or worse, financial institutions weigh your credit score heavily before extending an offer to you. You cannot change the past, but you have total control of your financial future. Make 2010 the year that you learn what your credit score is and how to improve it. Some improvements are very easy and with a small effort you can save money by reducing your cost of credit. Armed with your improved credit score, call all of your banks, credit card companies and insurance companies to bargain for their best rates. Be aggressive. Lenders are more eager to keep their best customers than they are to terminate their worst. Lenders more than likely will offer you an incentive to stay if you have a high credit score.
Resolution No. 5: Assess the risks in all your investments.
Many investors spend most of the time looking at the potential return of a particular investment while dismissing the risks. They ask, “How much can I make on this?” If they see a stock chart, they instinctively imagine the line ascending instead of declining. In 2010, try asking, “How much risk will I have to assume for the potential to make a certain return?” Professional money managers live in the world of “risk adjusted returns” and if you are serious about your financial future you should too. Risk is defined in many different ways. You are aware of the risk of capital loss. Are you equally aware of interest rate risk, reinvestment risk, inflation risk, liquidity risk and currency risk? Which one is exerting the greatest influence on your investments? What can you do about it in 2010?
“Even making small financial adjustments can yield worthy results,” said Kevin Painter, managing partner at LeConte Wealth Management.
Visit LeConte Welath Management’s web site for free financial calculators and additional information.
ABOUT LECONTE WEALTH MANAGEMENT, LLC:
Established in 2007 and located at 269 Cusick Road, Alcoa, Tenn., 37701, LeConte Wealth Management, LLC helps clients develop a plan to accumulate and preserve their wealth in pursuit of their unique financial goals. With more than 30 years of cumulative experience, the firm’s team provides asset management, retirement planning, estate planning, risk management and business planning. Securities and Advisory Services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.
Tags: Financial Adviser, Hoy Grimm, Kevin Painter, LeConte Wealth Management, new year resolutions
