{"id":3211,"date":"2022-08-15T00:01:00","date_gmt":"2022-08-15T07:01:00","guid":{"rendered":"https:\/\/qa.simplifimoney.com\/blog\/?p=3211"},"modified":"2022-12-02T14:34:24","modified_gmt":"2022-12-02T22:34:24","slug":"you-are-here-fix-financial-mistakes-beat-inflation","status":"publish","type":"post","link":"https:\/\/www.quicken.com\/blog\/you-are-here-fix-financial-mistakes-beat-inflation\/","title":{"rendered":"You Are Here\ud83d\udccd\u2014 How to Fix Past Financial Mistakes &#038; Beat Inflation"},"content":{"rendered":"\n<style type=\"text\/css\">\n       .callout {\n\t\tmax-width:800px;\n\t\tmin-width:320px;\n\t\twidth: 80%;\n\t\tborder: none !important;\n\t\tborder-radius:8px;\n\t\tmargin:auto;\n\t\tmargin-top: 25px;\n\t\tfont-size:18px;\n\t\ttext-align:center;\n\t\tpadding:18px 20px 25px !important;\n                background-color:#F5F5F6;\n\t}\n        figcaption {\n                text-align:center;\n                font-size:1.25rem;\n        }\n        .wp-block-image img {\n                border-radius:10px;\n        }\n        @media screen and (max-width:557px) {\n                .wp-block-image img {\n                        width:100%;\n                        height:auto;\n                }\n                .callout {\n                        width:100%;\n                        max-width:none;\n                        padding:12px !important;\n                        line-height: 28px;\n                }\n        }\n<\/style>\n\n\n\n<p><em>The following is adapted from The Runway Decade.<\/em><\/p>\n\n\n\n<p>We all encounter obstacles on the road to financial success. We make personal mistakes, and we face collective challenges too, like inflation. These obstacles can feel tough to manage, but they don\u2019t have to hold you back. To get where you want to go, start by identifying the \u201cYou Are Here\u201d of your financial life.<\/p>\n\n\n\n<p>For most of us, that\u2019s a challenge in itself. When prices are up and markets are down, it can feel easier not to look \u2014 especially when you feel like you\u2019ve made a few blunders. But today is a new day. The purpose of clarifying where you are now isn\u2019t so that you can lament the past. It\u2019s so you can take control of your financial situation and move into the future with confidence.<\/p>\n\n\n\n<p>It\u2019s also important to remember that what was working well two years ago or even last year might not be working well today. During times of high inflation, you\u2019ll want to take stock of your finances more often.<\/p>\n\n\n\n<p>By taking a thorough inventory of your financial health, you can figure out exactly where you stand on the path to your destination.&nbsp;<\/p>\n\n\n\n<p class=\"callout\">Need a lift before you look? CFP<sup>\u00ae<\/sup> Michael Lynch, formerly onsite at ESPN, shows that historical market drops recovered <a href=\"https:\/\/www.quicken.com\/blog\/when-market-drops-remember-these-3-things\">faster than we remember<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Dump the puzzle pieces<\/h2>\n\n\n\n<p>Clarifying your current financial status is a bit like dumping all the pieces of a puzzle onto a table, flipping them over, and sorting them out. From there, you have to figure out how to put together all of those pieces to create the big picture so you can look at it and say, \u201cOkay, this is what we have, and this is where we are.\u201d&nbsp;<\/p>\n\n\n\n<p>First, gather up all of your important financial documents\u2014anything that a dollar touches\u2014like your will, personal tax returns, 401(k) and investment statements, annuities, and life insurance policies. If you have employee benefits at work, like a pension or health, disability, or group life insurance, you might find all of that in your employee manual.<\/p>\n\n\n\n<p>You\u2019ll also need to pull together all of your bank accounts, credit card statements, and mortgage statements for any properties you have financed. If you\u2019re in business, you might include employee agreements, business tax returns, and any stock options, if applicable.&nbsp;<\/p>\n\n\n\n<p>Basically, you want to catalog the value of all of your assets and liabilities. Whenever we meet with people for the first time, we tell them they\u2019re like a blank piece of canvas to us, and we need to paint in the picture with all of these details.<\/p>\n\n\n\n<p>Then, you\u2019ll want to clarify your cash flow resources and needs. Exactly how much money is coming in from all sources and how much is going out every month? What sources of income do you anticipate in the future, such as Social Security or pension payments from current or former employers? If you\u2019ve inherited a retirement account from a parent, you may have required minimum distributions to take out each year.<\/p>\n\n\n\n<p>This probably doesn\u2019t sound like a fun activity, but it\u2019s essential to good financial planning. You have to know exactly what you\u2019re dealing with to make accurate projections about what you\u2019ll have available in the future and what gaps you might need to fill along the way.<\/p>\n\n\n\n<p class=\"callout\">Need a hand? Use <a href=\"https:\/\/www.quicken.com\/blog\/question-of-the-month-jan-2022\">Quicken or Simplifi by Quicken<\/a> to gather up your assets, liabilities, and cash flows automatically.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Keep the right mindset<\/h2>\n\n\n\n<p>More than likely, you\u2019ll be energized by this process as you start to feel organized and empowered about the wise decisions you\u2019ve made and the assets you\u2019ve accumulated thus far. Even some people who haven\u2019t been paying close attention to these things are surprised to find that they\u2019re often in better shape than they realized.<\/p>\n\n\n\n<p>But, we also understand that this part of the process can be incredibly discouraging to some people. Your picture might reveal that you\u2019re a lot further from your retirement goals than you thought. Don\u2019t beat yourself up over it.&nbsp;<\/p>\n\n\n\n<p>Know this for sure: there are people in better shape than you and people who have been in much worse financial condition than you who still managed to retire successfully.&nbsp;<\/p>\n\n\n\n<p>Plus, let\u2019s face it, this is your life, not someone else\u2019s. You can\u2019t use someone else\u2019s plan to build your goals. It\u2019s easy to start comparing yourself to others and feeling bad that you haven\u2019t made more progress, but this isn\u2019t a competition. It doesn\u2019t matter what the studies and statistics say about where people your age should be. Don\u2019t fall into that trap!&nbsp;<\/p>\n\n\n\n<p>You\u2019re playing your own game, and it will be different than just about everyone else\u2019s for a reason.<\/p>\n\n\n\n<p>Whether you\u2019re looking at the statistics and saying, \u201cI\u2019m way behind where I should be,\u201d or saying, \u201cI\u2019m ahead of everyone else \u2014 I\u2019m doing great,\u201d both mindsets are misguided. In reality, how you\u2019re doing compared to other people at the same stage in life doesn\u2019t tell you whether or not you\u2019re in good shape.<\/p>\n\n\n\n<p class=\"callout\">You\u2019re in good shape if you\u2019re on track toward your own <a href=\"https:\/\/www.quicken.com\/what-retirement-planning\">retirement goals<\/a>. That\u2019s it. That\u2019s the measuring stick.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">You gain tremendous power<\/h2>\n\n\n\n<p>Most people don\u2019t truly know where they currently stand on basic things like account balances, asset allocation, details of group benefits, and other financial details. The main question we want you to answer affirmatively is, \u201cDo you know?\u201d&nbsp;<\/p>\n\n\n\n<p>By painting in the big picture of where you currently stand with your finances, you gain tremendous power to shape and adjust your financial future.&nbsp;<\/p>\n\n\n\n<p>Now you know what all of the pieces are and what they do, so you can sit down and talk to your spouse, your kids, trusted friends, or a financial advisor, and start moving in the right direction with confidence.<\/p>\n\n\n\n<p class=\"callout\">When managing your finances as a couple, make sure you can answer these <a href=\"https:\/\/www.quicken.com\/blog\/for-love-or-money\">10 important questions<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If inflation is getting you down or you feel like past mistakes sent your finances in the wrong direction, here\u2019s how to get them back on track.<\/p>\n","protected":false},"author":25,"featured_media":3221,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"How to Fix Past Financial Mistakes &amp; Beat Inflation | Quicken","_seopress_titles_desc":"If inflation is getting you down or you feel like past mistakes sent your finances in the wrong direction, here\u2019s how to get them back on track.","_seopress_robots_index":"","inline_featured_image":false,"footnotes":""},"categories":[69],"tags":[],"class_list":["post-3211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.quicken.com\/blog\/wp-content\/uploads\/2022\/08\/couple-looking-at-documents-together.jpg","_links":{"self":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/3211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/comments?post=3211"}],"version-history":[{"count":18,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/3211\/revisions"}],"predecessor-version":[{"id":5233,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/3211\/revisions\/5233"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media\/3221"}],"wp:attachment":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media?parent=3211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/categories?post=3211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/tags?post=3211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}