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How to Back-up Your Life

How to Back-up Your Life

Too often people go through life with a tunnel vision approach of how they plan to go about their daily activities, long term goals and work related endeavors. Any well thought-out strategy is successful because the planners know that “the best laid plans of mice and men often go awry”.

Life is always tossing in the monkey wrench. You should never assume that what you plan today will work for you tomorrow. We see examples of these alternative plans everywhere, yet most of the time they go unnoticed. What does this say about our priorities? By putting some focus on the areas we have neglected to plan for, we can get a better understanding of where our life priorities really stand and where they really should be.

Why is having a Plan B a vital part of success? Not only do back-up plans keep you calm in times of duress, but they also offer two important attributes that should always be accounted for before planning anything in life: flexibility and adaptability.

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Flexibility allows you to change plans without notice which means you can adapt to any situation that arises to achieve your intended goals. There are areas in life where you should always have a back-up plan. We know one thing for sure: that change is constant. You have to be able to handle change whether good or bad. Here are some suggestions in areas that may need attention.

Your Career

-Always back-up your career. This is something to consider now when the economy seems to be headed into dire straits. I know too many people who have been laid off and have no idea what to do if they don’t find another job in their field. Always find something you can do in lieu of your dream job.

-Update your resume often. Whenever you finish a big project, switch jobs or get a new title, it is important to update your resume right away. Not only will it save you time later when you need it, but it is always good to have it updated for spur of the moment career opportunities. I have seen people lose promotions because their resume was not ready to go and they took too much time to update it.

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-Save, Save, Save. Financial planners recommend that you have at the very least two months pay saved up. If you get laid off or worse, fired, there is no guarantee of a severance package. If a medical condition befalls you and you need to take an extended leave of absence, this is a security blanket that will see you through to your recovery. Even if you cannot seem to save that much, save something or meet with a planner who will help determine the plan best for you based on your current salary that will stick.

Your Finances

-Always have a retirement plan. If you are at least 30 years of age and have not opened a savings account, 401K or Roth IRA, do it now! This is especially important for those earning a living in the blue collar or hospitality industry with companies that do not offer you benefits for retirement. Retirement may seem like a long way off, but by opening an account is a step in the right direction towards ensuring your stability later on in life.

-Plan for divorce. It is not a pretty phrase to read, but let’s face it, more than half of all marriages end in divorce. Of course we all tell ourselves that we will be the exception, but it is still a financially independent and intelligent thing to keep in mind, especially for women, so that we have financial security should the marriage fall apart. It is as simple as starting a separate savings account. You can find amazing deals right now if you do it online with interest rates up to 4.75%! That is as good as a CD and you can keep adding to it for the life of the account.

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-Plan to be widowed. The last thing you need when something so horrible happens is to have to worry about finances. Whether you are 20 or 60, you should have a living will. If you need a good reason why, let’s remember Terri Schiavo. She was only 25 and the absence of a living will kept her in a vegetative state for more than a decade. You and your partner should have life insurance policies with the other being named as the beneficiary.

Also, any retirement plan should also have the spouse’s name on it in the event of a tragedy. Each of you should also have your own credit card. Too often I see spouses just added on as users to the credit cards without realizing that they are just authorized users and not actual account holders. It is important to build your own credit and not just rely on your spouse’s.

-Always insure valuable items. The engagement ring you bought your wife, the family heirlooms your mother gave you, antiques of value in your house, etc. It is important to inventory your items of importance in case of a natural disaster, fire or robbery. Get them appraised first before insuring. You might also want to take photos of the items and put them somewhere safe.

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Your Personal Records

-Always back up important records. Plan a day each month to back up your files on your personal PC, laptop and work computer. I recommend an external hard drive. What size you will need depends on what kind of files you work with each day. External drives have come down in price and are much easier to use and less time consuming than CD burning. Instead of amassing a bunch of CD’s, you can just update files on the external hard drive.

This also means scanning in and saving important documents such as birth certificates, any financial records such as taxes and of course, work files! In case of a fire or computer crash, you will still have this valuable information. Your birth certificate can be certified by a notary public without having to go through vital statistics from the state you were born. You may also want to look into a safety deposit box for heirlooms and important records. Not only will these items be insured, but they will be safer than in your personal possession.

Back-up plans should not only be applied to business projects, educational goals, but everywhere in the real world: dealing with children, spouses and social environments. It is important to pay attention and start planning the alternatives so you are not left in the dust unable to adapt because you failed to develop a Plan B. Lack of planning robs you of your flexibility because unfortunately, failure is always an option and if you fail to plan, you plan to fail. You may never use your back-up plans, but like the flood insurance you purchased, it’s always nice to know you have it.

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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