Wealth manager Harry Abrahamsen has five easy ways to stay on top of the big picture.
PORTLAND, Maine – Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the founder of Abrahamsen Financial Group. He works with his clients to create and develop their own heritage. Abrahamsen shares five financial tips, starting with knowing what you have.
1. Analyze your finances quarterly or semi-annually
You want to make sure that your long term strategy is in line with your short term strategy. If the short term doesn’t work, you may need to adjust what you are doing to ensure that your outcome produces the desired results that you are seeking to accomplish. It’s like embarking on a journey across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered in order for you to cross safely. Your finances behave in exactly the same way. Check your current situation and make sure you factor in all of the various wealth eroding factors that can take you off course completely.
With interest rates so low, it might be time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, only do this if you need to or can create a positive cash flow. To make sure you’re saving as much as possible, you need to factor in current payments, excluding taxes, and insurance charges. This way you can make an apples to apples comparison.
The most important things to look for when reviewing your credit report is accuracy. Make sure the valuation agencies report things to the actuary. If it does not appear to be providing correct and accurate information, you should consult a reputable credit repair company to help correct the incorrect information.
4. Savings and retirement accounts
The most important thing to consider when reviewing your savings and retirement accounts is to make sure that the strategies match your short and long term investment goals. Too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a good strategy in place will allow you to have a macroeconomic view of your finances versus a microeconomic view. Stay the course and adjust accordingly from a risk and tax perspective.
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A great tip for reducing utility bills or car insurance premiums: just ask! There may be things you don’t know that could save you hundreds of dollars every month. You just need to call all the companies you do business with to find out about cost reduction strategies.
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To learn more about Abrahamsen Financial, click here.