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Steps to put you into financial good shape

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Do you ever think about your fiscal shape in addition to your physical shape? Just as diet and exercise provide longevity, financial planning also helps to provide for your future self.

If you've ever wondered about how you'll make ends meet in the future, you aren't alone. But, there are steps you can take before the first quarter of 2016 ends that will put you in better financial shape by the end of the year.

First, start by creating a budget, said Andrew Tisdale, a financial advisor with Edward Jones. A budget may sound scary, but it's nothing more than a plan, he explained.

"Spouses should budget together, going over all the known bills and income for the month," he said.

Once you know where your money will be going, you can begin to take steps to cut expenses and plan for savings.

"The earlier you start saving, the more potential you have for financial growth," he added.

One easy way to get started is if your employer offers a retirement match on your 401(k), take advantage of it. And, you can choose your investments based on your age, he continued.

"The stock market isn't gambling," he said. "When you consider investing money, look at things you use every day. Solid companies that have been around for a long time are a good place to start for long-term investments."

Self-employed? There are self-employed retirement plans available for savings, too.

Once you've taken those steps, it's time to start to build a pad - money you could live on for three to six months if needed.

"Always be prepared for incidentals," Tisdale explained. Incidentals can be anything from medical emergencies that result in job loss to environmental emergencies such as a storm that destroys the roof of your home. With a cushion, he continued, you can focus on the emergency rather than worrying about money.

"Even if $1,000 is all you can save, that's a start," he said.

Tisdale recently hosted a financial planning event geared toward women, because they are the family caregivers - which often involves financial planning.

During the event, a statistic was revealed: Ninety percent of women are solely responsible for their finances at some point in their lives.

As such, the following financial documents were noted that are needed for a family:

- Trust: A trust allows for property to be held for your designated beneficiaries. In the case of a husband and wife, this is usually their children.

- Will: A will is a legal declaration which allows for a person or couple to name who will manage their assets and divide their property after death. A trust is often a part of a will.

- Healthcare and power of attorney directives: With this document, you can designate someone to be your representative in the event you can't communicate decisions about your healthcare. A power of attorney is a legal document that will allow the person of your choosing to act in your place.

- Financial plan: Generally, a financial plan is a comprehensive evaluation of a person's current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans.

- Giving plan: A plan that includes those charities and non-profits you are invested in and plan to give charitable donations to.

Part of planning for your financial future is teaching your children how to save as well in order to create financial independence. An easy way to begin teaching this is to take a jar and have kids put a penny in each day. If you begin on Jan. 1, by Dec. 31 you'll have saved $668.

For help with financial planning, you may a financial advisor would be helpful. To choose one, interview a few and ask questions. Find someone you can trust and who understands your finances, local economy and lifestyle.

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