When I do financial coaching w/ friends & family
Step 1 is ALWAYS to get organized
Start by tracking your expenses
@mint
@PersonalCapital
@ynab
More:
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Create income / net worth statements
Here is the coaching template that I created and use with all of my clients
drive.google.com/open?id=18ee7t…
![](https://pbs.twimg.com/media/EWSOJLLX0AA98hg.png)
Optimize ALL expenses
Can you lower your cable / phone bill?
Can you spend less on food? (budgetbytes.com)
Do you have any recurring charges you no longer need?
Attack them all!
Starter emergency fund
How much? At least enough to cover insurance deductibles
Pay off ALL High-Interest Debt
Payday lenders
Credit cards
Loan sharks
401(k) up to the employer match
Full emergency fund
3+ months of expenses in cash
6+ months if you have 1 income and kids
Max Health Savings Account (HSA) contributions if you have a high deductible health plan
$1,400 deductible individual
$2,800/family
fool.com/retirement/com…
Max IRA contributions
Roth / traditional
$6,000 / $7,000 depending on age in 2020
Pay off ALL non-mortgage low-interest debt
Student loans
Cars
HELOC
Max out 401(k)
$19,500 / $26,000 depend on age 2020
529 contributions
33% to a regular brokerage account
33% to mortgage paydown
33% to irregular expense fund (car, roof, vacation)
Whatever you want
If you have kids, YOU NEED A WILL & OTHER ESTATE PLANNING DOCUMENTS
Pay to meet with a local lawyer
It's expensive but worth it
YOU NEED LIFE INSURANCE
20-year, fixed-rate, TERM insurance (not whole/universal) is a good start
I like $1 MM per adult
@Policygenius & @healthiqinsure are excellent resrouces
Health
Umbrella policy
Disability
Home/renters
Car
Business (if small business owner)
@creditkarma for tracking credit score
SSA.gov
Annualcreditreport.com
@upromise
missingmoney.com
travelmiles101.com
GET AN ENERGY AUDIT DONE
Many utilities offer this FOR FREE
And will even subside improvements
F.I.R.E.
@ChooseFi
@AffordAnything
Personal finance
@AnswersPodcast
Market
@MFIndustryFocus
@MarketFoolery
@MotleyFoolMoney
Hire a fee-only money coach
I like momandddadmoney.com
But there are lots of great choices
It's all of our responsibility to do these things on our own
And to spread the word so others have a roadmap to follow
Sadly, they don't teach this stuff in school (I'm working on changing that!)