DOLLAR SENSE

October is Financial Planning Month and a good time for a few words to the wise. Holley G. Cary (pictured), CFP, is vice president and financial planner at First Tennessee Bank National Association, and she has some advice if you want to protect your finances — and who doesn't? We're all in favor of improving our quality of life and getting focused on goals, whether personally or for small business.

So here are her seven tips for getting into action:

- Create a written spending plan. Better than budgeting, which can be mentally restricting, plan to spend what you need for your lifestyle. Address fixed expenses first, such as rent, mortgage, utilities and groceries, then develop a discretionary plan for larger one-time expenses.

- Create a written savings plan. Take advantage of your employer’s pre-tax plan at work. If none is available, look into the suitability of a traditional or ROTH IRA option through your bank or investment advisor.

- Create an emergency fund. Start saving 10 percent of your income through automatic transfers, keeping in mind this is a fixed expense in your spending plan. Target the equivalent of three to six months of expenses as an anticipated balance in a liquid savings account.

- Create a debt pay down or payoff plan. Examine your “smart debt” — mortgage, student loans, vehicle acquisitions — against your discretionary debt, which includes things like credit cards and other high-interest notes. Use the “snowball method," first targeting the debt or credit cards with high interest rates. Then work towards a method of paying down subsequent accounts with payments saved.

- Have a written contingency plan in case of incapacity or death. Work with an estate-planning professional to capture what’s appropriate for you and your family situation.

- Choose your professional team wisely. These are the professionals you trust for expert advice, such as your banker or CPA.

- Always revisit your plan. An annual review is wise. Remember that financial planning is never completed. Circumstances change and your plan should be flexible.
 

QUOTABLE

"This is a way to have it for a couple of days. It’s not a rental. It’s a demo. You get to see if it fits up and down your apartment stairs, you need to make sure you’ve got a safe place to keep it, that you have a route dialed in. We understand that buying an e-bike is a significant investment.”

- Clark Butcher, owner of Victory Bicycle Studio, on the shop's e-bike demo program. Read more from the Memphis Flyer.