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Money Talk

■ WELMER NERI FINANCIAL PLANNER (415) 887-8891 WELMERNERI.COM

Make Your Money Werq for You

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I moved to San Francisco from the Philippines 2004 with nothing but my luggage, eager to succeed and realize my dream — not just for myself but also for my family who depends on me. As a registered nurse and immigrant, I know firsthand about hard work.  Juggling nursing jobs allowed me to earn, save, and realize some of my financial goals.   I thought I’d achieved the “American Dream”, but like many others, I lost a lot of capital from my portfolio during the market crash in 2008, and even more in the recession that followed. Although that was a difficult lesson, It made me realize that it does not matter how much money you make, if your financial house is not built on a solid foundation. Without proper understanding, you’re vulnerable to losing all your hard earned money.  So as a result of my experience, I became more proactive in learning how to make my money work for me.

I want to show you how you can make your money work for you and set financial goals. Setting financial goals is like hanging a map on your wall to provide directions to guide you through each step towards accomplishment. Your map might have your future adventures outlined with tacks and twine. It may be patched with pictures snipped from travel magazines. But to get where you want to go, you still have to make real-life moves toward your destination.

Here are 5 tips for creating goals that can help you get to your financial destination

  1. Figure out what’s motivating your financial decisions. Goals like saving for an early retirement, paying off your house or car, or even taking a second honeymoon in Hawaii may leap to mind. Take some time to evaluate and rank your priorities, and consider how they relate to each other. This may help you focus on a path to your financial destination.
  2. Control your money. Controlling your money may be as simple as dividing your money into designated accounts, then separating and organizing each account’s statements, receipts, and other important papers like these. Additional financial documents like insurance policies, tax returns, and wills also need to be kept in order, keeping the details of your financial health easy to access. A large part of working towards your financial destination is being able to find a document when you need specific information to help chart your course.
  3. Track your money. After your money comes in, where does it go? Monitor your spending habits for a few weeks and the answer may surprise you. There are a plethora of tools offered by banks, and many apps you can link to your account(s) to determine where your cash is actually going. Some questions to ask yourself: Are you a stress buyer, usually good with your money until it’s the only thing within your control? Or do you spend, spend, spend as soon as your paycheck hits, then transform into the most frugal individual on the planet until the next direct deposit? The answers will come when you answer honestly.
  4. Keep an eye on your credit. Building a strong credit report will assist in reaching future financial goals. You can boost your credit rating by making loan payments on time and reducing debt. If you neglect either of those, you could be denied for mortgages or loans, endure higher interest rates, and face potential difficulty getting approved for things like cell phone contracts or rental agreements. There are multiple websites (like Credit Karma) to help keep track of your credit score, which you can also use as a compass on your trek to financial independence.
  5. Know your number. This is the ultimate financial destination—the amount of money you will need to retire. Kicking back at age 65 is a great goal—but, without a realistic number, you might hit 65 and find you need to stay in the workforce to cover bills, mortgage payments, or provide help supporting your family. Paying off your car or your student loans has to happen, but if you’d like to do it on time–or maybe even pay them off sooner–you need to know a specific amount to set aside each month. And that second honeymoon to Hawaii? Even this one needs a number attached to it!

Looking at where you are and figuring out what you need to do to get where you want to go can be easier with help. Plus, what’s a road trip without a buddy? Call me anytime and we’ll chart your course together. (415) 887-8891 WELMERNERI.COM