Investing Unit 1: Action Steps

Image:Check.gif Check off the Action Steps after you have completed them.


Cash Management

Image:Square.gif Develop financial management knowledge and skills, i.e., record-keeping, budgeting, tax, risk, and credit management.
Image:Square.gif Reduce expenditures to free up money to help achieve financial goals.
Image:Square.gif Compare financial account statements provided by institutions with personal records.
Image:Square.gif Complete an annual financial checkup, including net worth and cash flow statements.
Image:Square.gif Build a team of financial advisors to guide and direct financial decision making.
Image:Square.gif Review financial management strategies periodically and revise when necessary.

Emergency Cash Reserve

Image:Square.gif Determine/establish adequate amount of emergency fund for your individual situation.
Image:Square.gif Deposit funds in easily available accounts where they can be accessed with minimal financial penalties.

Risk Management

Image:Square.gif Locate your insurance policies such as life, health, property, casualty, automobile, liability, and disability.
Image:Square.gif Evaluate current policies and shop around for additional or replacement coverage if indicated.

Tax Management

Image:Square.gif Learn about tax laws and use related strategies to reduce total taxes owed.
Image:Square.gif Check your income tax withholding level and adjust, if indicated.
Image:Square.gif Explore the advantages of different tax strategies.
Image:Square.gif Utilize tax-advantaged and tax-deferred options when appropriate, i.e. IRAs, 401(k), 403(b).
Image:Square.gif Maximize tax deductions (e.g., using home equity credit-line loans versus non-deductible consumer interest.

Financial Goals

Image:Square.gif Write out short-, intermediate-, and long-term financial goals following the SMART goal format.

Credit Management

Image:Square.gif Keep credit use at a safe, manageable level.
Image:Square.gif Obtain a copy of your credit report to see if it is accurate and complete.

Home Ownership, Investments, Children’s Education, Retirement Planning

Image:Square.gif Determine which of these categories contain areas you wish to include in your financial goals.
Image:Square.gif Write down specific financial goals for those categories following the SMART goal format.

Estate Planning

Image:Square.gif Establish and periodically evaluate wills and estate plans.