Tackle Financial Planning with These Seven Steps

October 15, 2024 – St. Louis, MO –

October is Financial Planning Month! In honor of this fiscally responsible observance and Gershman Mortgage’s almost seven decades of helping customers reach their dreams of homeownership, the Gershman team huddled up to share our top seven financial planning tips and tricks!

1. Save for a rainy day with a money market account: Having a separate account for emergency funds is a no-brainer. Open a money market account and have it pull a portion of each paycheck to save for the things you don’t want to spend money on, but have to (think: broken HVAC, emergency car repairs, or sudden medical bills). Setting aside a special place for these funds can save you from putting these expenses on your credit card or dipping into your personal checking or savings accounts. Bonus: Money market accounts typically have higher interest rates than regular savings or checking accounts. You can shop around for the money market account with the best interest rates!

2. Take advantage of HSA or FSA accounts: If your employer and insurance company offer a Health Savings Account or Flexible Spending Account, you should take advantage of it! Utilizing these accounts is a smart move because they provide tax savings as well as a cushion for medical expenses. And, if you have an HSA, you can build up your savings for the future because you don’t have to use it or lose it by the end of the year!

3. Set up auto drafts where available: Setting up large payments like your mortgage payment or car payment to be automatically drafted from your bank account is a fantastic way to ensure your bills are paid on time, every time! Not only does this remove the burden of having to pay those bills yourself every month, but you also have the added bonus of never making a late payment, potentially saving you money in late fees. As the infomercials say, “Just set it and forget it!”

4. Keep track of those monthly subscriptions: Do you know off-hand how many monthly subscriptions you’re currently paying for? Do you know how many you’re paying for and not even using? Keeping track of these subscriptions and their monthly costs is more critical than ever, as everything these days seemingly requires an account. Be sure to cancel accounts you’re not using frequently or take advantage of the “pause” option, which more and more services are offering these days. This allows you to take a break from the service without canceling your account entirely.

5. Hire a financial advisor or financial coach: If you’re struggling to make sound financial decisions or don’t even know where to begin, you’re not alone. This is a very common problem, especially in today’s economy. Hiring a professional can be a great way to change your behaviors or patterns and start saving as much as possible. They can point out where you’re making mistakes and offer solutions to correct your course. They can also help monitor your finances and give you a heads-up before you find yourself in trouble.

6. Evaluate your long-term goals regularly: Do you plan on retiring someday? Early? At all? Do you plan on having children someday, or if you already have them, do you plan on paying for their college education? Younger generations are starting to veer from what were once considered “traditional” goals by trading in the nuclear family and a white picket fence for extravagant vacations, placing the value more heavily on experiences over things. Everyone has their own independent and unique idea of the best way to spend their hard-earned money, and everyone has that right. It’s just important to evaluate these goals regularly so you can prepare for the future you desire and deserve.

7. Last but certainly not least, check to see if you’re eligible for a home loan refinance with Gershman Mortgage! If you purchased your home in the previous couple of years, there’s a good chance that the interest rate on your loan is higher than what rates are today. Even a fraction of a percentage point has the potential to save you hundreds of dollars every year over the life of your loan. Who couldn’t use some extra cash? A refinance with Gershman Mortgage is a painless process that will not only lower your interest rate but could also help you pull some money from your home equity to pay off debt or complete some significant projects. If you need more incentive to save more money each month, refinance with Gershman and we will waive our lender fee of $1,095 if you closed your original home loan with us during the past two years!* Reach out to a Gershman Mortgage loan officer today to see how we can help!

Financial planning can seem overwhelming, but it’s a winning strategy that can help set you up for success. Follow these seven tips to ensure your finances are in the best shape possible!

NMLS #138063 Equal Housing Lender. 16253 Swingley Ridge Road, Suite 200, Chesterfield, MO 63017. (800) 457-2357

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*Purchase a home and close with Gershman Mortgage. If you return to Gershman Mortgage to refinance, we will waive our lender fee of $1,095. Six payments must have been made to be eligible for the fee waiver. Refinance must close by December 31, 2025. This is for informational purposes only and not an offer to lend or extend credit. Subject to credit and income approval. Terms and conditions are subject to agency and investor guidelines. Customer must have tangible net benefit for refinance.

Written by Alli Wideman 10/15/2024 for Gershman Mortgage