1. Know your goals. This means trying to step back and say, “Where are we going? How are we going to get there?”  While it doesn’t necessarily mean having all the pieces in place, you should be able to identify the goals and a few actions that will bring you closer to achieving them.  Don’t be be afraid of dreaming a little, but also make sure the goals are specific, measurable, and realistic.

2. Don’t be paralyzed by past mistakes. Most people, even those who are highly successful, have made bad investments at some point in their lives.  The important thing is to learn from your mistakes and move forward. Stressing about the past is not a productive activity.

3. Develop a plan. A goal without a plan is nothing but a wish.  You also need to be flexible enough to re-calculate as goals and situations change. This is where a trained and certified financial planner can be an asset, monitoring your performance, how it measures up to the market, and whether or not you are on track to meet your stated goals.

4. Know your cash flow. This is the financial equivalent of taking your blood pressure. It’s not about putting you on a budget, it’s about knowing how much money is coming in and where it’s going. You might be surprised at how much you are spending on certain items. Having a handle on your cash flow combined with knowing your goals, will help identify possible changes that can be made to help you achieve your objectives.

5. Plan your major celebrations without stress. Planning for a child’s wedding?  Rather than incurring excessive debt, consider scaling down the event to reduce stress. In addition, if there is enough time and with proper planning, there may be ways to save well in advance.

6. Understand your liquidity. Liquidity is the ability to convert your investments into cash quickly.  Liquidity is valued because life is dynamic and your need to move quickly may be necessary – whether it’s due to an opportunity like a good investment, or an unforeseen expense, like a flood in your basement.

7. Know and manage your risk. Things go wrong and accidents happen. Whether it relates to a downturn in your health or your finances, you want to protect your family. Understanding your insurance options is an important part of every financial plan.

8. Plan for financial independence. Knowing when you can retire and having some confidence that you will have enough money, is what financial independence is all about. The financial planning process can help you project your retirement at a given age based on such things as assumed income, expenses, inflation, social security, and savings.

9. Establish an estate plan. This gives you control over your money and your children’s future when you’re gone.  Unfortunately, too many people relegate this to the bottom of their list.

10. Manage your taxes. Your accountant and financial advisor should be talking when it comes to your tax planning. You should have a strategy in place that will minimize your taxes, while helping you achieve long term value.

11. Manage your debt. Carrying debt creates anxiety and stress. Credit card debt in particular often results in interest rates exceeding 20%! It’s important to pay down debt as quickly as you can. This ultimately frees up funds that can be relegated elsewhere.

12. Understand your investment strategy. Your investment strategy should be tied to your goals, time horizon, and risk tolerance. Having a plan guides you so that you avoid the type of panic that can lead to making bad decisions.

13. Putting it all together. Simply stated, this means looking at the big picture and feeling confident you have crossed your T’s and dotted your I’s. Be sure to prioritize your needs and talk with a professional who can offer independent advice.

Questions about retirement savings, estate planning, or investments?  If you would like to set up a no-cost consultation with the Investment & Retirement Center located at First Financial Federal Credit Union to discuss your savings goals, contact us at 732.312.1500 or stop in to see us!*

*Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free 800-369-2862. Non-deposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.

Article Source: http://www.valuewalk.com/2015/06/personal-finance-commandments/