Fineman CPA Group logo

Fineman CPA Group

 

The Village Shoppes

95 Washington Street, Suite 203

Canton, MA 02021

Phone: 781-821-2727

 

Email: bob@finemancpa.com

Website: www.finemanCPA.com

December 2023

Manage Family Finances Like A Business

Manage Family Finances Like A Business

When doing your year-end financial review, consider managing your personal finances like you handle your business. Why? Looking at your personal situation from a business perspective helps you find places to cut expenses, boost cash flow and improve your personal financial situation.


CREATE A NET WORTH STATEMENT
First, summarize the current value of all your assets, including cash and cash equivalents, brokerage balances, retirement funds, real estate and your personal property. Then, subtract your liabilities. Remember that some business assets and debts may need to be included depending on your business structure.


LOOK AT CASH FLOW
When considering cash inflow, remember to include any dividend and interest income, rental income, etc. Compare inflow to outflow, including loan payments, food, clothing, education savings, taxes, insurance, gifts and more.


Recruit family members to assist by tracking their spending for a month — every penny. It isn't easy, but it's important.


Once you know where your money is going, look for spending cuts and ways to increase savings. Places many families can cut are forgotten subscriptions and extra streaming services. Fortunately, there are several apps to help with these tasks.


INCORPORATE RISK MANAGEMENT
Like your employees, examine your benefits elections. Do they still fit your family situation? The same goes for your withholding election. Review your insurance coverage: health and disability, life, homeowners and personal-liability. Your insurance professional can help identify changes that may be needed. Make sure to regularly check your credit report, too.


HAVE A SUCCESSION PLAN
Make sure you have a retirement transition plan and an updated estate plan. Review beneficiary designations for retirement accounts, insurance policies and provisions in your will and living trust to help ensure they still match your wishes. Updates are easy.


If possible, increase your retirement plan contributions each year and take full advantage of tax-deferred compounding.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.