Some of the work I've done over the past few years has involved working with the military. Along with providing individual consultations, I've also had the opportunity to conduct briefings (i.e. presentations) to groups of Servicemembers.
I usually wasn't asked to discuss something specific like "budgeting" or "debt", so over the years I developed a briefing that covered a variety of topics in order to cover as much ground as possible. This is a short version of my "Five Steps To Financial Readiness" briefing.
Step 1: Determine Your Current Situation
The best way to determine your current financial situation is to complete a personal balance sheet that lists your assets and liabilities. You can find sample templates online, but the easiest thing to do is to take a sheet of paper, draw a line down the middle, and list everything you own on the left and any debts you have on the right. Think of a balance sheet as a "financial report card" and complete one regularly to track your progress.
Step 2: Deal With Debt
Ignoring any debt you have on your balance sheet will won't make it go away and will almost always make it worse. The website www.PowerPay.org is a free resource you can use to come up with a personalized debt repayment plan.
Step 3: Start A Cash Reserve
You should set a goal of saving at least $1,000 in an emergency reserve even if you're working on paying off high-interest debt. If you don't have bad debt to pay down, then set a goal of saving between three and six months of living expenses. You can go to www.BankRate.com to find a fee-free high interest savings account to use as your reserve.
Step 4: Review Your Credit Report And Score
I usually wasn't asked to discuss something specific like "budgeting" or "debt", so over the years I developed a briefing that covered a variety of topics in order to cover as much ground as possible. This is a short version of my "Five Steps To Financial Readiness" briefing.
Step 1: Determine Your Current Situation
The best way to determine your current financial situation is to complete a personal balance sheet that lists your assets and liabilities. You can find sample templates online, but the easiest thing to do is to take a sheet of paper, draw a line down the middle, and list everything you own on the left and any debts you have on the right. Think of a balance sheet as a "financial report card" and complete one regularly to track your progress.
Step 2: Deal With Debt
Ignoring any debt you have on your balance sheet will won't make it go away and will almost always make it worse. The website www.PowerPay.org is a free resource you can use to come up with a personalized debt repayment plan.
Step 3: Start A Cash Reserve
You should set a goal of saving at least $1,000 in an emergency reserve even if you're working on paying off high-interest debt. If you don't have bad debt to pay down, then set a goal of saving between three and six months of living expenses. You can go to www.BankRate.com to find a fee-free high interest savings account to use as your reserve.
Step 4: Review Your Credit Report And Score
Almost everyone looks at your credit report and score these days, so it's important to review your reports for signs of identity theft and make a plan to improve your score if it's low. You can get free copies of your credit reports at www.AnnualCreditReport.com and get suggestions for improving your score for free at www.CreditKarma.com. Go to www.FTC.gov if you've been a victim of identity theft.
Step 5: Plan For Future Goals
Once you've covered the basics you should start planning for financial goals like college expenses for your children, purchasing a home, and retirement. Websites like www.BankRate.com and www.SmartMoney.com have great articles about planning. If you want personalized advice, you can go to www.NAPFA.org or www.GarrettPlanningNetwork.com to find a fee-only financial advisor that never receives sales commissions from his or her recommendations.
To learn more about our company - and find out how we are different from other financial advisors - call (210) 587-6433 or visit www.VannoyAdvisoryGroup.com.
