Financial SafetyBuilding Money Mindfulness

With a new year just underway, it’s the perfect time to take steps to shore up your financial stability. There are a few key areas that will go a long way to strengthening your finances: reducing debt, creating (or building up) an emergency fund, protecting your savings when your income takes a hit and creating a budget.

 

Reduce debt

For most Americans, debt is essential, accounting for a great majority of all home (88%) and vehicle (85.4%) purchases. At the same time, ensuring that you have sufficient income to pay down your debt is essential for avoiding a mounting debt burden.

An important way to reduce debt is to reign in your credit card purchases, which can accumulate finance charges each month if you fail to pay the balance in full.

If your income is insufficient to pay off your credit card balance in full, shop around for a card with the most favorable interest rate. You have the potential to receive a lower interest rate on a credit card if your credit score is strong. To improve your rating, pay your bills on time and reduce your reliance on credit cards.

 

Create an Emergency Fund

Creating an emergency fund is an important way to handle unexpected expenses, such as a medical emergency, major car repair, or appliance replacement. Ideally, you want to keep three to six months’ worth of living expenses in the fund. Without such a backup source of payment, you may incur credit card debt.

If you tap your emergency fund during a downturn in the job market or by incurring unexpected expenses, create a budget to build it back up.

If your income rises, consider creating a bigger emergency fund that covers more than six months’ worth
of expenses.

 

Protect Your Savings When You Lose Your Job

Losing your job creates a nearly immediate shock to your cash flow, and it could prompt you to make unsound financial decisions, such as piling up debt on a credit card. Resist the temptation and instead look for ways to replace your lost income, such as by filing for unemployment benefits. The benefits have the potential to address some of your basic expenses and prevent you from taking out your credit card.

Additionally, scour your budget and try to find expenses that you can trim or even eliminate. Discretionary spending items like eating out and leisure travel are easy to cut; so, too, are those premium cable channels and $8 pints of name-brand ice cream.

Don’t be afraid to withdraw money from your emergency fund, this is the occasion that you dreaded but planned for.

Avoid taking money out of your 401(k) or other retirement accounts, as it may make your retirement savings goal difficult to achieve.

 

Budget by the Numbers: 50/30/20

Developing a budget is a practical way to manage your finances and achieve a positive cash flow. One popular and easy rule to follow is to allocate your after-tax income on a 50/30/20 basis: 50 percent on your needs, 30 percent on your wants, and 20 percent on savings.

Your needs include goods and services that you cannot live without, like mortgage payments, groceries, insurance, and healthcare. As an example, a car payment is a need; HBO Max is not.

Your wants are comprised of discretionary items, like eating at restaurants, leisure travel, and that premium Internet package or luxury car (choose instead middle-of-the-road broadband and a more economical vehicle).

If possible, putting away 20 percent of your net income to savings has the potential to help you save for retirement and establish an emergency fund, the latter to be used if you incur an unexpected expense or loss of income.

Building money mindfulness helps you take better control of your income and expenses and is an important step to achieving your financial goals.

 

 

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. This material was prepared by LPL Financial. Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL Financial affiliate, please note LPL Financial makes no representation with respect to such entity.

Not Bank/Credit Union Guaranteed | Not Bank/Credit Union Deposits or Obligations | May Lose Value | Not Insured by FDIC/NCUA or Any Other Government Agency.

MC-21703-1120

Tracking # 1-05108000

https://i0.wp.com/baileywealth.org/wp-content/uploads/2021/05/bailey-wealth-3.png?fit=300%2C46&ssl=1
1604 Hewitt Ave., Suite 704 Everett, WA 98201

Follow us:

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: AK, AZ, CO, ID, IL, IN, MO, MT, NM, NV, OR, SC, TX, VA, WA.

Copyright © Bailey Wealth Services 2021

Holly Farrar

Client Services Associate

As director of First Impressions, I strive to make sure our clients have a comfortable and meaningful experience while providing remarkable customer service at the highest standards. I enjoy going to local Everett events and festivities while spending time with friends and family. I love to read, especially dystopian novels.  I am involved in volunteering opportunities within the community including grocery shopping for homebound people, coffee trailer and first responder appreciation.

Education and Biography

Training

Holly Studied Business and Management at Sno-Isle Business and Management & Everett Community College. She has over 20 years of customer service and administrative experience.

Specialisms

Holly’s focus is to create meaningful connections between our clients and our office. She schedules appointments, answers calls, processes transactions, preparing paperwork to maintain accounts as well as opening new accounts, and transfers.

Albert Ballesteros

With over 25 years of customer service working in the Financial Industry and the State of Washington, Albert is a welcome addition to the service team. He helps with opening new accounts and servicing current accounts. You have probably received appointment reminders from him. He also works with the marketing team in planning monthly letters to clients, planning special events and creating the weekly newsletters.
In his spare time, he volunteers at Northshore Christian Church, having completed two mission trips to the Philippines and has a passion for singing. He enjoys playing and watching most sports but is especially an avid fan of the Everett Silvertips.

Education and Biography

TRAINING

Albert attended Honolulu Community College where he obtained his AA in Liberal Arts.

SPECIALISMS

Albert joined Bailey Wealth Services in 2022. His focus is to provide support to both prospective and existing customers with exceptional customer service. He is very personable and brings professionalism to his role.

Wes Burroughs

One of the things I enjoy most about what I do is educating clients on what is available to them as an investor. Our clients know where they’re at financially and where they are going because we make breaking down the complexities of a constantly changing world a top priority. Outside of work, I love spending time with my wife, Blyn, and playing with our daughter, Sophia. I also enjoy running and hosting game night with friends.

Education and Biography

TRAINING
Wes attended Liberty University where he obtained his BA in Philosophy.

SPECIALISMS
Wes joined Bailey Wealth Services in 2021. His focus is helping families maintain and grow the wealth they already have. Wes enjoys working with our valued clients to facilitate financial relationships by providing solutions, solving problems, and helping them manage their financial lives.

A. Sean Bailey, CFP®

My mission is to assist families as they strive to acquire, accumulate and retain wealth in a tax efficient manner so they may live in retirement with confidence and dignity. When I’m not engaged in professional activities, you can find me on a mountain top with my wife, Kim, and our two children, Eleanor and Oscar.

Education and Biography

TRAINING
Sean received his Bachelor’s Degree in Business Administration, Finance Concentration, from the University of Washington.

SPECIALISMS
Sean Bailey has been in the financial services industry for 30 years. He specializes in developing comprehensive financial, estate and retirement planning strategies for clients nearing and in retirement. Sean is a Registered Principal and Investment Advisor with LPL Financial. He is a CERTIFIED FINANCIAL PLANNER™ Practitioner. Sean is also a member of the Financial Planning Association and Ed Slott’s Elite IRA Advisor Group.

Ed Slott’s Elite IRA Advisor Group is not affiliated with Bailey Wealth Services or LPL Financial.

Sonya Jones

I endeavor to provide excellent service to our clients and organizing processes and procedures to ensure our office runs smoothly. When not working, I enjoy spending time with my fiancé, Erik, and our two boys, Lukas and Archer along with our dog Pixie. I love cooking for them and experimenting with different recipes and techniques, including treats for Pixie. Our favorite family activity is taking road trips, especially to California to visit family and friends.

Education and Biography

TRAINING

 

Sonya received her BA in Art at California State University, Chico and has over 25 years of administrative and customer service experience in the financial services and accounting industries.

 

SPECIALISMS

 

Sonya’s focus is to help clients reach their financial goals by assisting them with their various transactions and paperwork to service and maintain their accounts. This includes opening new accounts and initiating transfers from and to financial institutions. Sonya is constantly looking for new ways to improve our processes to ensure we work efficiently and in a manner that creatives positive experiences for our clients.

Sonya Jones

I endeavor to provide excellent service to our clients and organizing processes and procedures to ensure our office runs smoothly. When not working, I enjoy spending time with my fiancé, Erik, and our two boys, Lukas and Archer along with our dog Pixie. I love cooking for them and experimenting with different recipes and techniques, including treats for Pixie. Our favorite family activity is taking road trips, especially to California to visit family and friends.

Education and Biography

TRAINING
Sonya received her BA in Art at California State University, Chico and has over 25 years of administrative and customer service experience in the financial services and accounting industries.

SPECIALISMS
Sonya’s focus is to help clients reach their financial goals by assisting them with their various transactions and paperwork to service and maintain their accounts. This includes opening new accounts and initiating transfers from and to financial institutions. Sonya is constantly looking for new ways to improve our processes to ensure we work efficiently and in a manner that creatives positive experiences for our clients.