Simple

Today's financial world is very complex. Your tax rate depends on your income. However, due to income phaseouts and tax credits, your tax rate is not really what tax you pay. Refinancing your home or business loan can help you save a lot of money in your monthly expenses. However, in the long run, it could cause you to pay thousands more in interest. A company you invest in could have great liquidity, solid profits for the last few quarters, and an outstanding projection. However, instability in the market could cause that company's stock price to be very volatile. The only way to navigate through this complexity is to keep things as simple as possible. Athletes often say they perform better when everything seems to slow down. Things seem to get simpler for them. Financially, we should strive for the same state.

Simplicity is easy to obtain if you really want it. First, you should organize your tax situation. Know what your income sources are, and review them periodically. Find out how investments are performing. Always be asking yourself, "Is this a tax deduction? If not, how could it be?" Discuss your tax situation with your tax professional at least once a year for planning. Second, meet with your financial adviser at least once a year. With market fluctuations, last year's big loss in an investment should be met with this year's big gain. Consider your full investment strategy. How many institutions/advisers do you work with? Investment diversity can be better achieved with one investment adviser than with ten. Your insurance situation needs the same consideration. A good way to have too much life insurance is to have multiple insurance providers. Third, get rid of the clutter. Bundle your utilities as much as you can. Cancel unnecessary credit cards - one credit card is all anyone needs. Narrow your charitable giving by becoming a strong supporter of a few organizations, rather than a minor contributor of many organizations.

It is not a coincidence that the most powerful advice we get is often considered simple. Keeping it simple is the way to make your financial world slow down, allowing you to obtain the control you should always have.

Stability

Financial stability, or the ability to meet the needs of ourselves and our loved ones, is always at the core of our goals. Sure, we may want the big house, expensive car and VIP tickets to all of our favorite events, but we would not consider having any of these if our basic needs were not met first. Most basic needs are the same for everyone - food and water, shelter, clothes. However, we all get into a bit of a gray area when determining what is a need and what is a want as we begin fulfilling those needs. How much do you spend on food? What size of a house is really necessary? How new should your wardrobe be? The answers to these questions are different for us all. But the answers are incredibly significant. Your state of mind factors heavily into your financial stability. If you are uncomfortable about what your basic needs are, finding financial stability becomes very difficult. This is why keeping a clear definition of what your needs are is very important.

Once you have stability defined, you have to find a way to achieve it. Many of us meet roadblocks on the way to achieving our financial stability. For some, it is mounting credit card debt they cannot manage. For others, it is a bad investment they cannot get out from under. For many, it is student loan debt that has put them in a position where it seems impossible to succeed. The good news is stability is always possible. It just takes knowledge, creativity, a good work ethic and patience. A good work ethic and patience are all up to you. A quality adviser can help give you the knowledge and creativity to set up the plan you need to succeed, and to help you evaluate and adjust your plan as you go. The best decisions are those with 100% support. Your adviser will help you make sure you have a plan you can support 100%.

Through good times and bad, financial stability is always at the core of our goals. It should, therefore, be something we plan with a much bigger emphasis. If you have not thought about this in the past few months, it is time to think about it now.