As 2008 begins many people have resolutions. As we head into the income tax season here are my thoughts on financial planning. And I’m not all about money. My first job was with the federal government & I left that when my daughter was born to teach. Then I worked in a public library system for 10 years (non-profit). Job satisfaction is of higher value to me. But paying attention to finances is important, especially if you have children & want to help with their college!

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When was the last time you visited with your financial adviser? With my job change last fall I needed to rearrange my retirement planning. And at the time, I realized that it had been 10 years since we had reviewed all of that. What’s all THAT? It’s the reality that many people put off & think they’ll worry about later. Well, later comes sooner than you expect!

short term:

  • credit cards are great IF you pay them off in full every month – the interest rate can be devastating otherwise. We use a card that earns frequent flyer miles for all purchases & double miles for college tuition. (We have to pay it anyway!)
  • new cars – we used to enjoy them, but have learned that the depreciation immediately isn’t a good investment
  • mortgage – pay it off sooner – if you look closely, there isn’t that much tax savings if you have one (plus you have to pay the interest)

long term:

  • save for college – many of you have young children & college will come soon. We found that college is like buying a new car each year. (what kind will depend on the institution).
  • retirement – again, saving over the long run allows for it to grow
  • evaluate your retirement savings goals – every 5 years may be more practical than our 10 year span

What have I forgotten? What are your tips for financial planning?

(photo by Pete Rocks)