National Financial Awareness Day: 5 Ways to Improve Your Financial Wellness

It’s National Financial Awareness Day, and we’re here for it! SOGO Wealth & Risk Management has a knack for helping our clients manage their assets, so listen up as we brush up on these simple tips for the everyday adult to make steps toward improving your financial wellness.

1) Determine Your Net Worth –

When was the last time you sat down and compared everything you own vs. everything you owe? Figuring out your net worth is a perfect starting point to creating financial goals for yourself. Is your net worth negative? Don’t get too down on yourself. Having a net worth that is negative is pretty common, especially if you’re living that student loan life still. Don’t let this number discourage you from even starting to be financially aware. Digest the information, and use it to determine next steps. 

2) Create a Budget (and Use It!) –

No, really, we mean it. Before the age of online banking, folks had to rely on balancing a checkbook with pen and paper, forcing them to create a budget and plan for expenses. We could take a lesson from our parents and follow this method, because nothing will help you become more aware of just where your money is going than watching it sneak away on purchases you didn’t really need. Write down “Target” or “Home Depot”  5 times in a month and you’ll be surprised to see just how much is “disappearing.” Create an old-fashioned budget using Google Sheets, including every single expense you anticipate coming out of your bank account in the next month. Don’t forget weird expenses, like quarterly medication, car registration, and other charges that can seem to come out of nowhere. Assign your money to expenses you planned, and cut down expenses that are not needed. Track any unexpected recurring expenses and either make room for them in your budget, or get to the root of the problem and solve it. If you’re always $100 over on your grocery budget category, adjust and move forward. If you’re always over $100 on your hobby budget category, think about if you’re making smart decisions or just mindlessly swiping your card. 

3) Keep an Eye on your Credit Score –

You’ve probably been monitoring your credit score electronically, but it’s time to think about actually paying off credit card debt as you spend it. Everyone has heard of Dave Ramsey’s snowball method to eliminating debt, so try something similar to this and challenge yourself to make sacrifices (for a little bit!) in order to save in the end. Raise your hand if you’ve charged something worth $50 years ago, and realized it has become a $350 item due to interest rates? (Raise). We know. We’ve done it too, but now’s our chance to get that (and keep that!) balance at zero. 

4) Get it together! 

We mean this with love. Having your financial documents in order means being one step closer to being more financially aware. If you have gaps in your paperwork, request it from the bank. Missing an interest rate from your pile could mean spending dollars on an unnecessarily high-interest rate. Should something unexpected or tragic happen to you, you’ll definitely want to have your paperwork in order and not stress your family out to the max.

5) Invest and Save –

Whether tonight’s dinner includes a Burrito Supreme from Taco Bell, or whether you’re making dinner reservations at Galpão Gaucho, SOGO is right here to manage your wealth and keep you financially stable, no matter where you are financially in your life at the moment. SOGO’s agents are ready to discuss the options with you, from Individual Retirement Accounts, or IRAsannuities, or high net worth insurance protection for those with an especially large amount of assets. 

Adulting is hard, but we believe in you. Let us help you get your financial state in order. Our agents are wealth management experts, and will gladly walk you through your best options. 

In case you missed it: “Summer School Lesson 3: Employee Benefits” will debrief you on employee benefits options for the people that make your business possible.