Did you make a New Year’s resolution that included fitness? What about your financial fitness? When you develop or re-evaluate your financial plan with the support of AAFMAA Wealth Management & Trust LLC (AWM&T), you’re one step closer to achieving the financial future of your dreams.

Financial preparedness is the key to long-term success, and it’s time to focus on the health of your military family’s finances. The AWM&T team is here for you with seven steps to ensure that your finances are fit and ready to serve you, this year and beyond. .

Strong, Robust Finances in 7 Steps

1. Establish Goals

Before you develop a strategy, you need to know where you’d like to go. Ask questions about your desired future to map out the route. For example, where do you see your military family five years from now? In retirement, do you plan to travel the world, own multiple homes, buy your dream car, or put grandkids through college? Write down your goals and structure them by using the S.M.A.R.T. method. This acronym stands for Specific, Measurable, Attainable, Relevant, and Time-based.

2. Assess Risk

Do you understand the specific level of risk that your finances can withstand? Risk tolerance measures the variability in investment terms and is unique to you. This assessment takes into account your financial goals, time horizon, age, lifecycle phase, and current economic and political conditions. AWM&T offers a free risk assessment tool that quantifies your acceptable levels of risk and reward, and removes any guesswork on your part.

3. Analyze Cash Flow

The next step to consider is the importance of how money moves in and out of your accounts, or what’s known as your cash flow. Auditing where your money is going and how much you are spending on a monthly and annual basis provides crucial information for your cash flow analysis. Once you determine which costs are essential and which are discretionary, you’ll find room for improvement, which can invariably increase your cash flow.