73: Back to Basics: Essential First Steps to Taking Control of Your Finances

Take Back Retirement

“It’s not about deprivation. It’s about balance. It’s about taking care of your today self and your future self.”

Join our hosts, Stephanie McCullough of Sofia Financial and Kevin Gaines of American Financial Management Group, as they simplify the world of financial planning, starting with understanding cash flow. They tackle how to monitor the inflow and outflow of your money, without yet worrying about its source or where it's going. Learn the importance of observing more than one month of data, as things can fluctuate from month to month.

Stephanie and Kevin further explore the significance of setting up an emergency fund and how much cash you should ideally have available. Listen as they explain why it's essential to have a cash cushion to cover unexpected expenses. They provide insights on how to calculate the amount you should have in your emergency fund and why it may need to be increased if your future seems uncertain. Also, discover the differences between cash and investments, and why cash is best for emergencies.

They discuss the different retirement savings and investing options available, such as 401(k)s, IRAs, and target date funds. Gain knowledge on the benefits of each, from lower costs to matching options and pre-tax savings. They also touch on setting up a regular investment account with no limits or restrictions. Their ultimate aim is to emphasize the importance of establishing an investment plan that suits you and doesn't cause unnecessary stress. This episode is your guide to making informed and confident decisions about your financial future.

Key Topics:

• Cash and Cash Flow (04:10)
• Looking at the Trends (06:41)
• How Much Cash Should I Have and Where to Put It? (09:42)
• How to Invest More Money (20:17)
• Don’t Get Intimidated by the 1099 Form (22:48)
• Savings vs. Investment (23:39)
• Wrap-Up (25:20)

Resources:

• Take Back Retirement Episode 29: How Much Cash Should I Have and Where Should I Be Putting It?
• Take Back Retirement Episode 12: What Women Need to Know About IRA’s, with Sarah Brenner
• Take Back Retirement Episode 45: What Women Need to Know about Target Date Funds
• Put One Foot in Front of the Other - Santa Clause is Coming to Town (skit)
• HEE HAW Gloom Despair And Agony On Me | Classic Her Haw TV (skit)

If you like what you’ve been hearing, we invite you to subscribe on your favorite platform and leave us a review. Tell us what you love about this episode! Or better yet, tell us what you want to hear more of in the future. [e-mail]

You can find the transcript and more information about this episode at www.takebackretirement.com.

Follow Stephanie on Twitter, Facebook, YouTube and LinkedIn.

Follow Kevin on Twitter, Facebook, YouTube and LinkedIn.