We are nearly done with Woman’s Compass: The Course. I wanted to share what people are doing with their money RIGHT NOW during quarantine.
My clients that use Personal Finance apps have more money saved and are more organized. Don’t you want to be in this category? Lots of new ones. Here are a few of my favorites. Which ones do you like?
Qoins - to pay off debt
Banktivity - to connect all your accounts
Mint - to track your spending
Acorns - to round up your spending and save more money
Wealthfront - robo-advisor
What is your current financial situation? Why is it so important? Start with the 30-Second Snapshot. Participants in the Course kept saying they couldn’t assess their goals or deal with their money worries until they understood their current situation. You may not need to know exactly what are in these accounts but know the numbers. Keep track of them every month. What do you OWE? What is your total debt that you owe - include credit card, student loans, mortgages, business loans, past taxes? What do you OWN? What is the total amount of all your savings, your investments, your retirement accounts, your home equity? What do you SPEND? What is the total amount you spend every month - include annual expenses? What do you EARN? What did you earn last month? If you have variable income, what did you earn year to date?
Is it safe to keep all your investments in one firm? This question keeps arising from clients. Overall, if you keep your investments in one place, you will be more organized and are more likely to have proper asset allocation. However, a few of you are worried about keeping your investments in one firm. If that is you, then split your assets between two firms. But don’t use this as an excuse to have old 401ks at your old jobs or multiple IRAs in many different firms.
Keeping personal and business expenses separate. It keeps coming up in conversations! My clients that keep their personal expenses and business separate are more organized, are clearer about their revenue, their profit margin, and how to much to pay themselves. They also tend to have their own retirement plan set up, such as a SEP IRA or i401k. Don’t you want that?
Roth IRA Conversion. This is a great year to do so because your assets are lower. The benefit is this lets people do it that don’t normally qualify for a ROTH IRA because their income is too high. Check with your CPA what taxes you might owe.