Investment Mortgage Guy

Have you made your New Years resolution yet? Do you want to make 2010 a better year for you and your family financially? Do you cringe when you hear the word budget? For many, good financial management can seem like a daunting task.

Here are some tips that will help you become a better steward of your finances this year:

Tip #1 – Focus on taking baby steps at first. My advice is to spend one hour per night for 3 nights a week for the next 3 months (90days). I promise that if you do, you will be well on your way to setting up some good systems for 2010 that will give you more confidence and peace towards your finances.  Most people never even get started with organizing their finances because they look at the task in it’s entirety and feel completely overwhelmed.

Tip #2 – Use Quicken or a another software product to track and analyze your spending. A great first step to taking control of your spending is actually spending some time looking at what you are spending money on. (big revelation right!) You would be surprised how helpful it can be to download your checking account transactions into a software program and label each item. For example, you may set up categories for groceries, household items, gas just to name a few. In a matter of a few months, you will start see patterns of spending and make decisions with your money. I started doing this myself two years ago. At first, the software program seemed complex and confusing. I made it a goal to learn one new aspect of the program each month. After 12 months, I have learned quite a bit and set up several budgeting and reporting features. I used to hate looking at this information. Now I love it.  Mint.com has a great free service if you want to start budgeting and tracking.

Tip #3 – Get mobile – Most banks now a days have software you can download to your cell phone to get your bank balances and even transfer funds.

Tip #4 – Go paperless – Most major banks, mortgage companies and utility companies will allow you to set up an online account. This has many more benefits than just saving trees. You can make payments online, see your current obligations and have right at your finger tips access to months of history of your transactions with that company.

Tip #5 – Work with good professionals. A good accountant and financial planner can save you thousands with their advice and guidance. I think it’s smart to do your own budgeting but I still want guidance on tax advice and investment and insurance strategies. I rely on people who do those things everyday versus trying to figure out everything on my own.

I hope these ideas are helpful to you. May your 2010 be prosperous and fruitful!

Rob Bonahoom – Mortgage Coach – 651-485-3710