On Money & More – September 2024

“An ounce of prevention is worth a pound of cure.” ~Benjamin Franklin

WHEN IT COMES TO OUR HEALTH, we often hear the importance of regular check-ups, balanced diets, and exercise routines. But what about our financial health? Just like our physical well-being, our financial health requires regular attention and care. A proactive approach can prevent small issues from becoming bigger problems down the road. As we dive into the theme of health and wellness this month, let’s explore how you can give your finances the check-up they deserve.

Assess Your Financial Vital Signs—The first step in any health check-up is to assess the basics. For your finances, this means taking a close look at your income, expenses, savings, and debt. Start by creating or reviewing your budget. Are you spending more than you earn? If so, it’s time to identify areas where you can cut back.

Next, evaluate your savings. Are you setting aside enough for emergencies? At Cutler, we often recommend having at least three months’ worth of living expenses saved in an easily accessible account. If you’re not there yet, make a plan to build up this safety net. It’s your financial equivalent of a healthy immune system—ready to protect you when unexpected expenses arise.

Review Your Insurance Policies—Just as you would ensure you have the right health coverage, it’s important to review your insurance policies to protect your financial health. This includes life, health, home, and auto insurance. Are your policies up to date? Do they provide sufficient coverage for your current situation? If you’ve experienced major life changes—such as marriage, retirement, the birth of a child, or purchasing a home—it’s crucial to revisit your policies and make necessary adjustments.

Check Your Investment Portfolio’s Pulse—Investments are the heart of your long-term financial health, helping you build wealth over time. Regularly reviewing your investment portfolio is essential to ensure it aligns with your goals and risk tolerance. After several years of strong stock market performance, are your investments still diversified? Are you on track to meet your investment goals? If you’re unsure, consider seeking advice from a financial advisor.

Remember, investing is a long-term game. Don’t let short-term market fluctuations dictate your strategy. Staying the course with a well-thought-out plan is usually the best approach, much like maintaining a consistent exercise routine for your physical health.

Plan for the Future—Finally, just as a healthy lifestyle includes regular exercise and a balanced diet, a healthy financial life includes planning for the future. Whether you’re saving for retirement, your children’s education, or a dream vacation, having clear goals and a plan to achieve them is crucial.

Regularly review your financial goals and adjust them as needed. Life is full of changes, and your financial plan should be flexible enough to adapt to new circumstances while keeping you on track to achieve your dreams.

Your financial health is as important as your physical health. By taking the time to regularly assess your financial situation, review your insurance coverage, and plan for the future, you’re giving yourself the best chance at long-term financial wellness. So, schedule that financial check-up today—and if you don’t have somebody to talk to about your financial health, call Cutler. We are here to help.

All opinions and data included in this commentary are as of August 12, 2024 and are subject to change without notice.  The opinions and views expressed herein are of Cutler Investment Counsel, LLC and are not intended to be a forecast of future events, a guarantee of future results or individual investment advice including the asset allocation provided. Nothing herein should be construed as tax advice. This article is provided for informational purposes only and should not be considered a recommendation or solicitation to purchase or sell securities. This information should not be used as the sole basis to make any investment decision. The statistics have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed. Investing involves risk, including the potential loss of principle. Neither Cutler Investment Counsel, LLC nor its information providers are responsible for any damages or losses arising from any use of this information.