ICFE eNEWS #14-01 - Jan 14th 2014
"Five Easy Ways to Improve Your Finances in 2014"
RELEASE: January 2014
San Diego, CA. - All most people need to do is to take five common sense
steps to improve their finances in order to avoid costly mistakes and
even greater debt accumulation. Because more Americans are paying off
short term credit card debt than ever before, developing new money
management skills is an essential part of the process of debt
Developing financial self-discipline is the consumers' best defense,
even in a soft economy, to avoid compounding past mistakes and improving
one's personal finances in 2014. Here are five steps to take:
- Keep your financial know-how current in order to be in a position to
make intelligent spending and other financial decisions. Being aware of
changes in the tax laws, investment returns, etc. helps one avoid
becoming overconfident and unprepared.
- Project your income and expenses for the next twelve months and then
track the variances. Developing a spending-plan, a/k/a budget, promotes
better spending decisions. Spend money thinking of your future as well
as your present. You have an obligation to be as good to the person you
are going to be in 20, 30 or 40 years from now as you are to yourself
- When investing, focus on the relationship between the risk and the
projected return of your investments. Many investors overlook the
possibility of not getting their basic investment back because they are
focusing on early, high-end returns. Have a plan and a purpose for your
investing. Focus on making good decisions rather than beating out a real
or an imagined opponent in the stock market or in real estate.
- Maintain well organized records for income tax and general financial
planning purposes. This is often as easy as having twelve envelopes, one
for each month, and placing all pertinent financial statements, receipts
etc. into an envelope monthly and then placing the monthly envelopes in
a larger, yearly envelope.
- Manage your money so expenses stay below income. Everyday spending
decisions, especially credit based one, will have a far greater negative
effect on one's financial future than any investment decision one is
likely to ever make. Household and grocery items take up about 30 cents
of every take-home dollar. Using coupons and taking advantage of rebates
is a way to make and immediate, positive impact on your finances.
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President - Executive Director
Institute of Consumer Financial Education (ICFE)
ICFE - Institute of Consumer Financial Education -