Simple Financial Lifestyle » Planning

What Is a Health Savings Account?

Guest Post — Mon, 07 Feb 2011 10:00:52 +0000

If you’re young and just starting out in life or a ‘seasoned’ veteran, you have many things in common–one of which is the desire to assure your family is protected in case of emergency. That means insurance coverage…enough to cover you in the event of unexpected trouble. You can’t be too careful. Without insurance the first medical disaster will wipe you out, and it may take years to catch up. In order to protect yourself from possible financial ruin it’s advisable to make sure you’re covered in case of disaster. Of course, that’s not always possible, especially in this economy, and particularly if you’re recently married or out on your own for the first time. Money may be tight. You’ve saved a little for a rainy day, but you know it won’t be enough if something terrible happens. Is there a way to protect yourself and your family’s medical needs? Yes there is. It’s called a health savings account (HSA.)

What Is an HSA?

A health savings account may be just what the doctor ordered…if you meet the requirements. HSAs came into being as part of the Medicare Prescription Drug, Improvement and Modernization Act, commonly called the Medicare Modernization Act (MMA) in 2003. Basically, a health savings account is a bank account you open with your money (your employer may also contribute) and is kept on account for a specific purpose–health care for you and your family. You can add to it at any time and draw on it when needed. There are some terrific advantages to a HSA, but in order to qualify certain conditions must be met.

HSA Advantages

It is more than a simple savings account. Deposits into a health savings account are made with your funds before taxes are deducted. Interest on these savings is tax free, and any money you remove from the account to pay for medical expenses is not taxable. The money in your health savings account continues to draw interest as long as it is in the account. If you move or simply change banks, your HSA goes with you. It’s your money. As long it’s in the account, it continues to work for you.

Most banks will let you use some of the money in your health savings account to invest in stocks, bonds, or mutual funds so that you can make even more off it. If you hold onto your HSA until after you retire, you can also withdraw the funds for non medical purposes without a penalty. Similar to an IRA, health savings account funds may be subject to penalties for early withdrawal if used for a non medical purpose.

Withdrawing money from your health savings account is permissible for a variety of medical reasons ranging from lab fees to surgery, and may include anything that has to do with the diagnosis or treatment of a disease.

Requirements and Limitations

There are certain prerequisites that must be met to qualify for the benefits of a health savings account.

* Enrollment in an insurance plan with a high deductible is required for an HSA. Carrying a High Deductible Health Plan (HDHP) usually means making lower monthly payments, which is another advantage for having the HSA. There is, however, a caveat–you aren’t allowed to carry an additional medical plan that doesn’t include a high deductible.
* You must not be eligible to receive Medicare benefits, and you can’t be claimed as a dependent on anyone else’s tax return.
* You must not have received benefits from the VA during the previous three months, nor can you be eligible for Tricare, which is an insurance program for military veterans.
* There may be limitations as to the amount that can be placed in a HSA in any given year.
* You take the risk of the necessity of remaining in relatively good health while your HSA grows. In the beginning there won’t be a lot in the account, but your savings will grow if the money remains untouched.

Do Your Homework

Before jumping into a health savings account, weigh the risks against the rewards. You may discover that having a HSA is worth it. Everyone’s needs are different. A health savings account may not be for you, but the only way to find out is to study all the pros and cons and make an educated choice.

Guest post from Bailey Harris. Bailey writes for the Health Insurance Blog.

Simplify your personal finances by building a financial fortress

B Simple — Wed, 20 Oct 2010 11:00:35 +0000

If you are looking to simplify your personal finances a good way to help you simplify them would be to build a financial fortress. Webster dictionary defines a

Fortress as A fortified place, especially a large, permanent military stronghold that often includes a town or a place or source of refuge or support

I am not recommending you build a large structure to hold all of your financial assets because the global financial markets are about to crumb. I am suggesting you put things in place to help protect your personal financial assets which would be like building your own personal fortress. By having a financial fortress you protect your assets against the unexpected as well as the expected. Having this fortress in place will prepare you for any situation that is throw at you financially. Its always better to be prepare than unprepared it always make the situation easier or more manageable to handle.

Here are financial attacks that your financial fortress can help protect you against:

Attack of Identity thief
Everyday you hear about someone’s identity being stolen. Having your identify stole is not a situation you want to deal with. So build a ID thief fortress with the following:

Set up account alerts to help monitor your account activities

Shred your financial documents

Sign up for ID protection services that monitor your credit bureau

Unexpected expense attack

It will happen one day you just can not predict when it will happen or how much damage it will caused. What I am referring to is the unexpected repair, medical expenses, or any other expenses that you did not plan for. To protect against this type of attack you should build an emergency fund fortress. This fortress should be stocked with enough cash to cover any unexpected expenses. How much to funded it with is always the question.

Job Loss

Many people have dealt with this issue over the past two years. But how many of them were prepared for not having a job. Yes the easy solution would be to just go get another job but what if there are no jobs available what do you do then. Building a job loss fortress can help. Here are something you should do to build that fortress:

Have multiple sources of income

Have a job loss plan in place

Financial Markets Attack

This is something you can also not predict but you can build a fortress to help protect you from this attack. A meltdown in the markets can reduce your net worth within a couple days and can also impact on your future plans as to when you will be able to retire. Here are some tips to build your financial markets fortress:

Invest in multiple assets classes

Reallocate your accounts regularly

Revisit your investment goals and objectives often

Natural Disaster or Health attack

We can not predict when a natural disaster will hit or when your may become sick. But you can build a insurance fortress to protect you against these natural disaster and health issues. Review your insurance coverage to make sure you and your family are adequately coverage. Not having the proper insurance can place a significant financial burden on your personal finances.

Having these financial fortresses in place will help you protect your personal finances as well as help you simplify your personal finances.

TAKE ACTION

Look to see what financial fortress that you should build to protect against a financial attack.

What are other financial fortresses that should be build to protect your personal finances as well as help simplify them?

If you enjoy what you’re reading and want to stay up to date on the latest posts please make sure you follow me on Twitter and subscribe to my RSS feed. If you are serious about simplifying your personal finances also subscribe to SIMPLE FINANCIAL LIFESTYLE NEWSLETTER.

Do you have a Emergency Financial File to simplify your personal finances?

B Simple — Thu, 14 Oct 2010 12:00:55 +0000

Do you are your spouse manage all of your financial matters? If so what happens to your personal finances if the other is hospitalized or unexpectedly passes away? Would the non-CFO of the house know what to do to manage the family finances? In my post Financially Prepare your Spouse in order to Simplify I explain what the non-spouse needs to know in order to manage the family finances. Now its time to take it a step further. In order to make it even easier for the non-CFO spouse, you must create a file to explain what needs to be done to manage the family finances. I would label this file Emergency Financial File. This file should be filed with all of your other financial documents or in a location your spouse has access to and can quickly put their hands on it when needed. I would even purchase a red folder so it stands out from all of your other files.

This file should contain the following information:

Passwords and Login IDs
If you are truly trying to simplify your personal finances most of your personal financial information should be accessible online. You want to leave a listing of all of your passwords and log in information in the file. Make sure you are updating the file when you change any of your passwords.

Account Numbers
You want to leave a listing of all account numbers. This should include deposit accounts numbers, credit card account numbers, investment account numbers, retirement account numbers and any other financial related account number. If you have multiple banking relationships be sure to identify each bank as well. You don’t want them guessing what account number goes with what bank. A simple way to do this would be to make a copy of the first page of each account statement at least once a year and place the copy in the file.

Contact Names
You want to make a list of all financial contacts and place them in the file. These contacts should include all insurance contacts, accountants, attorney, investment advisors, and bank contacts. Many of these contact names should be on your account statements.

Location of assets
By keeping a copy of the statements this will help identify the location of assets but don’t forget those assets that you may hold in a safe deposit box or in personal home safe. Many individuals hold important financial documents, wills, jewelry and stock and bond certificates in deposit box or safe. You want to identify where those assets and documents are held. NOTE: If you hold assets or documents in safe deposit box make sure your spouse has access to the box and knows where the key is located.

Listing of all expenses
Create a list of all expenses and due dates so if your spouse had to step in and take over the finances. They would be aware of what needs to be paid and when it is due. Yes a bill may come in the mail but its better to provide them a list so they know what needs to be paid and when.

TAKE ACTION
Begin gathering all of the information discussed above so you can create your Emergency Financial File immediately. You just never know when it will be needed. The more information you provide the easier it will be on your spouse or whoever is left to manage your personal finances.

Remember take one step at a time to simplify your personal finances.

If you enjoy what you’re reading and want to stay up to date on the latest posts please make sure you follow me on Twitter and subscribe to my RSS feed. If you are serious about simplifying your personal finances also subscribe to SIMPLE FINANCIAL LIFESTYLE NEWSLETTER.

What are your Personal Financial Ugly Ducklings?

B Simple — Thu, 07 Oct 2010 11:00:36 +0000

In order to simplify your personal finances, you must identify your financial ugly ducklings and turn them into financial swans. What I mean by this is if you want to simplify your financial life so you can manage your finances better you must identify your bad financial habits which I refer to as your ugly ducklings and take action to turn this bad financial habits into a positive financial situation or what I refer to as financial swan.

Here are some ugly ducks you can turn into swans which will help you simplify your personal finances:

No financial goals – You have no long-term or short-term personal finance goals. If you establish goals you can simplify your personal finances quicker.

Not living on a budget - You do not set a monthly or annual budget. You are just spending money without setting limits. Establish a budget will enable you to reach your financial goals you set and help you take control of your finances. Gazelle budget is a simple solution to help establish a monthly budget.

Not planning for the unexpected – You do not have an emergency plan in place in case of an emergency. Establishing an emergency fund is like the goose that laid the golden egg when you are finances are in a bind due to an unexpected situation.

Not planning – You have not planned for the expected things that you know will happen in your life. Read this to find out what you can plan for. Establishing a plan for those expected financial situations will take the pressure off of you and your finances because you have planned for them in advance.

No estate plan – You have no plan in place to handle your assets upon your death. Read this if you do not believe you need a will. You do not know when it will occur but you can plan for it. Establishing a plan prior to your death is much easier on your family. You may not see the benefit but your family will definitely benefit and save some money in the process.

Too many credit cards – You have more than 3 credit cards with balances on them and you do not have plan in place to reduce your debt. Read this to make sure you are practicing safe credit card usage. Reducing the number of cards you carry and the outstanding balances on them will simplify your personal finance. This is one ugly duckling that you must turn into a swan rather quickly. If not it can get uglier rather quickly.

Not automating – You are still not using online banking, still cashing your payroll checks, or mailing you bill payments. Establish online banking which will enable you to pay your bills on line. Setup automatic deposit of your payroll checks to simplify your finance and save you time.

Too much paper – Is your mailbox screaming for relieve because you receive so much mail? Go paperless is more convenient and will save you time.

Forgetting due dates – Do you seem to forget the due dates of your bills or just forget to put the bill in the mailbox. Setting up your bills on your credit card or bill pay service will help you eliminate forgetting to pay your bill on time as well as save you from paying those late fees.

Living beyond your means - Trying to keep up with the your co-workers, neighbors and friends is causing you some financial stress but having the latest or newest whatever is more important. Stop trying to keep up. It will reduce your stress and enable you to live a healthier and wealthier financial lifestyle. It will trust me.

ACTION STEP

Take some time to review your current financial situation and identify your financial ugly ducklings and take action by turning the ugly duckling into a financial swan. Just like a duckling will not turn into a swan over night is the same with your personal finances. You must take one step at a time but if you take action I am sure your ugly duck will turn into a swan quicker than you planned.

If you enjoy what you’re reading and want to stay up to date on the latest posts please make sure you follow me on Twitter and subscribe to my RSS feed. If you are serious about simplifying your personal finances also subscribe to SIMPLE FINANCIAL LIFESTYLE NEWSLETTER.

Simple Personal Financial Tip: Managing your Financial Time

B Simple — Mon, 27 Sep 2010 13:00:37 +0000

Is finding the time preventing you from simplifying your personal finances? Simplifying your personal finances will enable you to spend more time doing the things you enjoy. If currently do not manage your time now, you may have a difficult time simplifying your personal finances. So in order to simplify, you have to mange your time more efficient. You can do this by setting up automatic deposits, automatic debits and automating your bills are some of the ways you can manage your time more efficiently.

Here are five keys to help you find the time to simplify your personal finances:

Have a vision of your personal financial picture

Take action and stop procrastinating

Always plan ahead

Prioritize your goals and objectives

Plan for the unexpected

Action step

Take a few minutes to decide what you time save actions you implement to help you manage you financial time more efficiently.

If you would like more tips to help you simplify your personal finances make sure you subscribe to simple financial lifestyle email newsletter and subscribe to RSS feed for blog updates.

8 Financial Seeds to Plant Now to Simplify Your Finances

B Simple — Thu, 02 Sep 2010 12:00:29 +0000

Looking to simplify your personal finances. You must first take action by planting financial seeds. Planting financial seeds is just like planting a garden. You must first plant the seeds in order for the plants to grow. So what financial seeds must you plant to get your financial simplicity garden to grow.

Here are some financial seeds you should plant to simplify your finances:

Saving Seeds – Want to grow your retirement saving and investment savings accounts? Open an IRA or start contributing to your401k plan at work for retirement. Looking to build investment portfolio open a discount brokerage account. Once you establish these accounts begin to make monthly automated contributions to your accounts. Plant this seed and watch your savings grow.

Eliminate Debt Seeds -Tired of looking at that credit card debt. Stop using your credit cards for purchases instead use cash. Develop an aggressive plan to eliminate your consumer debt. Plant the seed and watch your credit card debt go away.

Major Purchase Seeds – Want to purchase a new car, house or any other major purchase. Start saving for it by putting funds aside each month so you can reach your goal to make that necessary purchase. Plant this seed and you will have the funds for this purchase shortly.

Estate Planning Seeds – Worried your assets will not be distributed according to your wishes. Draft a will to make sure your intentions are fulfilled as you wish. Plant this seed and you will rest better knowing that your assets will be handled according to your wishes.

Bill Paying Seeds – Tried of forgetting to mail your bill on time or seeing that late charge. Plant the seed of automated bill payment by establishing bill pay through your bank or setting up direct pay to your credit card. Planting this seed will eliminate those ugly late charges and enable to make sure the bills are always paid.

Eliminate Paper Seeds – Receiving too much mail. Sign up for e-bills to reduce the amount of paper bills you receive each month. Planting this seed will save you time from opening all of those bills that you receive. NOTE: You will receive less paper but remember to review your bills to make sure they are accurate.

Automate Seeds – Tired of forgetting to make that deposit. Tired of waiting in line at the bank to make that deposit. Plant the autodeposit seed so you don’t have to wait in line or forget to deposit that check. Its done automatically for you. Planting this seed is the easiest and most convenient seed you can plant. You will never have to worry about what did I do with that check or waste your valuable time waiting to simply make a deposit.

Easy Banking Seeds – Want to check you account balance? Want to make sure that check cleared. Sign up for online banking. Plant this seed and you will have 24 hour access to your bank account.

TAKE ACTION

Decide what financial seed or seeds you need to plant so you can begin to simplify your personal fiances as well as reach your financial goals. Then take the necessary steps to plant the seed.

What are some financial seeds that you need to plant now in order to simplify your finances?

Remember take one step at a time in order to simplify.

This post was featured in Carnival of Personal Finance #273 – Labor Day Edition

If you enjoy what you’re reading and want to stay up to date on the latest posts please make sure you follow me on Twitter and subscribe to my RSS feed. If you are serious about simplifying your personal finances also subscribe to SIMPLE FINANCIAL LIFESTYLE NEWSLETTER.

Plan for the EXPECTED in order to simplify

B Simple — Thu, 26 Aug 2010 12:00:04 +0000

We have all heard that you should have an emergency fund in place for those unexpected expenses or emergencies. It is something I believe is important if you want to simplify your personal finances. Not only do you want to plan for the unexpected you also want to plan for the expected. Yes, it sounds like common sense but you have plan for those expected events in life. By having a plan for the expected events as well as an emergency fund in place for the unexpected you will simplify your finances.

Here are some expected events that you should be planning for to simplify your finances.

Retirement – We all know we would like to retire one day. So have you started to save for your eventual retirement? Do you know how much you will need in retirement to live the lifestyle you desire? Are you contributing to a retirement plan? Do you know at what age you would like to retire and begin to make a IRA withdrawal? Planning for your eventual retirement is essential part of simplifying your personal finances. If you plan for it now its much easier to reach the goals that you set for yourself.

Death – We all know that we will eventually die one day but just not sure when. Yes it would be much easier if we knew when it would occur but at this time we can not predict our day of death. We know we will die some day so why not plan for it now even though we are not sure what day and time it will happen. To simplify this you should have a will. SEE You probably should have life insurance for those you leave behind. If you really want to be proactive, purchase a prepaid funeral plan as well as plot for your burial. You know it will happen just not sure when so why not plan for it and simplify your finances as well as your loved ones.

Car Purchase – We know your car will not last forever. You will eventually need to purchase a new one day. So why not plan for it. Here is how you can do it. You purchase a new car and decide to finance it over 3 or 5 years. Once you pay off the car loan, instead of allocating the car payment to another expense why not continue budgeting the car payment but pay yourself. This way when it is time for a new car you would have already saved the money for the new car. Now that’s planning ahead as well as simplifying your finances.

Home Purchase -We know we will purchase a home or upgrade to another home in the future since most people don’t live in one house their entire life. Why not think ahead an plan for your future home purchase.

College Education - We know its important for our children to get the most education as possible and also know its not cheap to send your child to college to further their education. You may hope for a scholarship but be proactive and plan for their future education needs.

So TAKE ACTION put a plan in place for those expected financial events in your life. Its better to plan for them than not plan for them. Planning for those events will help you simplify your finances.

What are some events in your life that you know will happen that you should be planning for?

If you enjoy what you’re reading and want to stay up to date on the latest posts please make sure you follow me on Twitter and subscribe to my RSS feed. If you are serious about simplifying your personal finances also subscribe to SIMPLE FINANCIAL LIFESTYLE NEWSLETTER.

Don’t hate yourself for not having a job loss plan, just do it

B Simple — Wed, 04 Aug 2010 11:00:37 +0000

In order to simplify your personal finances you must be prepared for the unexpected. With the current global economic state that we are currently living in, are you prepared if you lost your job tomorrow? You may not feel like your job is at risk but you never know. So have you considered how you would handle an unexpected or even expected job loss? What would you do?

Most people would answer get another job. Unless you already have have something lined up it could take several weeks or even months to find another job. Are you prepared to have no income for several months?

What you really must have in place to lessen the financial impact and relieve some stress is a job loss disaster plan. This plan would map out what you would do if you suddenly lost your job . Its better to spend a few hours now mapping out your plan instead of several days or months wondering where your next pay check will come from. Here are some things you want to consider when designing you job loss disaster plan:

Do I have an emergency fund in place to cover short term job loss? You should have an emergency fund built up to cover your living expenses for several months in case of possible job loss.

Is my emergency fund adequately funded in case of job loss? If you have an emergency fund in place is there enough in the fund now to cover your current living expenses for several months.

What would I do about medical insurance? If you employer supplements your current medical insurance, its important for you to know what your options are if your job is eliminated.

Where would I begin my job search? Know where you would start looking for new job if your current one is eliminated.

Do I have a current resume? Make sure your resume is current and ready to be distributed to potential employers.

What current expenses could I eliminate if necessary? Review your current expenses and identify expenses that you could eliminate. These may be current luxuries that you can afford while employed but you may not be able to continue if faced with job loss.

Identify the minimum income I can live on each month? Review your monthly budget and determine what is the minimum about of income you will need monthly.

What other sources of income do I currently have? Do you have investment income or other ways to generate income outside of your job to help.

How much debt do I have outstanding? Knowing what you owe is important especially if your job is eliminated. Now is a good time to work to eliminate any unnecessary debt just in case. If you having a difficult time paying off this debt with a job just think how difficult it will be to eliminate this debt without a job.

So take action by answering these questions and begin putting your job loss disaster plan in place. By having a disaster plan in place you will not only simplify your finances but also reduce some stress when and if a job loss occurs. Remember its always better to be safe than sorry and to be prepared then unprepared.

Let me know what you would do if you loss your job today?

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Financially Prepare your Spouse in order to Simplify

B Simple — Wed, 14 Jul 2010 11:00:35 +0000

Simplify your personal finances by making sure your spouse or loved ones have an understanding of your financial picture. In many households the husband or the wife is the sole chief financial officer in the household. This means that the chosen individual handles all or the majority of the family financial matters without the much involvement from other spouse. This can cause financial stress if the CFO of the household becomes ill and unable to manage the household finances or even worse passes away. This leaves the other spouse the non-CFO trying to figure out what is going on and is left to manage the finances of the household. This can be very challenging task especially for someone who has never managed the finances before and all of a sudden is forced into that role. To lessen the burden on your spouse and loved ones who must now manage the family finances here are some tips to help simplify your finances:

Make them aware of the location of all financial documents – Whoever will handle your finances should know where to find such documents as the will, account statements, life insurance, retirement statements and banking account statements. Many of us use online banking so make sure that individual has your passwords for all online access. Make a list of all family accounts and account numbers. Take the time to update this list whenever you open or close an account.

Know who to contact – This is just as important as knowing the location of the documents. Make sure they know the name and contact information your accountant, attorney, and investment advisor as well as bank representative. Any other person who has knowledge of your finances. By knowing these individuals your spouse will be able to reach out to them for help if needed.

Know investment objective – How are your assets currently being managed? If something happens to you or your spouse your financial circumstances will change and your investment objective may change as well. You want to make sure your investment objective is in line with your current circumstance. For example, if you have a growth objective and now you will need income from your investments you will have to adjust your investment objective. So make sure you are aware you how your investment are currently invested. This free investment advice may help.

Know your current financial picture – You want your spouse to know all of your income sources, assets, and debts so they can step in an manage your finances immediately. Knowing this information puts them in a better position. Provide full disclosure. Keep an updated personal financial statement with your financial documents. Your personal financial statement should show all of your assets and liabilities as well as your income sources.

Know what funds are available – If something happens to you will your loved ones have sufficient funds to take care of you as well as funds to support them. Discuss what life insurance is in place if any and if there is disability insurance in place to replace your lost income. Review to make sure its enough if you are not there.

TAKE ACTION by making sure the non CFO in your household is aware of all five tips in case something happens to you. Its always better to be prepared then unprepared. By knowing this your spouse will have a much easier time handling the finances if you are not around. They will have enough to deal with if your not around so simplify it for them while you can.

Remember in order to simplify your personal finances you must take one step at a time.

This post was featured in Carnival of Personal Finance – Its Getting Hot in Here Edition

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Keys to Win Your Personal Financial Super Bowl

B Simple — Sun, 07 Feb 2010 09:00:40 +0000

The Super Bowl will be played in a few hours when my hometown Saints will face the Colts. To prepare for this big day each team has put in hours of preparation time so they can execute their game plan to win the game. The Saints have designed a defensive game plan to stop the Colts and Peyton Manning from scoring while the Colts have designed a defensive game plan to stop the Saints and Drew Brees ( I hoping the Colts game plan does not work). Just like each Super Bowl team has designed their offensive and defensive game plans to win the Super Bowl. You should design your own personal financial game plan to help you simplify your personal finances so you can win the personal finance game.

Here are a few keys to winning the Super Bowl as well as your personal financial game:

Financial Offensive Keys to the Game

Accumulate Yards

In the game of football, you want your offense to accumulate a lot of yards so you can score. In the Super Bowl both teams will design plays to gain yards. Some plays will be designed to gain a lot of yards while other plays will be designed to gain a few yards. The same can be said for your financial game plan. Instead of yards you want to accumulate money to save. So design some short term and long term saving plans to accumulate money. This will help you win the financial game.

Don’t Get Sacked

Both Super Bowl teams will try to protect their quarterbacks from being sacked. Having a good offensive line can help you protect your quarterback from being sacked. In the financial game, the best way to avoid being sacked is to have a financial budget. A financial budget will show you where the pressure is coming from and will enable you to put extra protection in place to prevent the sack.

Don’t Fumble

To win the Super Bowl each player must protect the football and not fumble it. To prevent you from fumbling the ball in the financial game, consider consolidating your accounts. The more accounts you have the more likely you are to fumble. Consolidating will help you have a better grip and hold on your accounts so you can monitor them better and avoid fumbling.

Financial Defensive Keys to the Game

Protect Your Endzone

On the defensive side each team wants to limit the number of touchdowns the other team scores. The best way to do this is to have a good defensive game plan in place to eliminate those touchdowns. In your financial game, you also want to protect your end zone. The best way to protect your end zone and eliminate those scores is to have insurance in place. Insurance is a great defense, which can help you hold the other team to field goals or not allow them to score at all.

Avoid the Big Play

If you want to win the Super Bowl your defense can not give up the big play. The other team may have a few trick plays in their game plan to get that big play to score. In the financial game, you have to prepare yourself for those unexpected trick plays. To do this establish an emergency fund, just in case one of those trick plays are called you will be prepared to quickly response and prevent that score from occurring.

Good Red Zone Defense

In the Super Bowl, each teams red zone defense must tighten up to prevent the other team from scoring. The same goes in the personal financial game. You should set up red zone alert when your accounts reach predetermined amounts. By having red zone alerts, you can make adjustments in advance of some things happen like your account being overdrawn.

What are your financial keys to help you win the personal financial game and simplify your personal finances?

TAKE ACTION

If you don’t already have a personal financial game plan in place put one. You cannot win the game without a good game plan in place. Once its in place you must execute on your plan. What good is a plan without execution.

Remember in order to simplify your personal finances you must take one step at a time.

This post was featured in Carnival of Personal Finance #243: Valentine’s Day Edition hosted by Get Rich Slowly

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