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The stock market crash leading to the recession at the end of 2008 caught many by surprise. If you’re among those whose savings and investments were ravaged by the economic downturn, don’t despair. To lose your assets in such a manner is a traumatic experience, to be sure, but you can bounce back. The first thing you should do is explain the situation to your loved ones so they can offer their support during these trying times, then follow our 7-step financial recovery plan to reclaim your monetary standing.

1- Evaluate the damage

The first action to take in our 7-step financial recovery plan is to catalog all of your losses as well as your remaining capital. Don’t rely on your initial panicked realization. You need to look at hard numbers, which is why it’s important that you take every asset into account, including your house. The situation may not be as dire as you think. You should also contact the credit bureau or any of your financial institutions to check your credit report.

2- Set short-term financial goals

Don’t try to achieve everything all at once. Getting back on your feet is going to take some time, which is why our 7-step financial recovery plan recommends that you set temporary objectives to minimize your debt. This can include saving a modest sum every month and paying off high-interest loans. Make sure to keep your goals realistic. You may not be able to clear all of your credit cards immediately, so it’s a good idea to rank them by interest rate to determine which should be handled first.

3- Redo your budget

Given your current monetary situation, you’ll likely need to tighten your belt to achieve your short-term goals, so track your spending habits and eliminate any superfluous expenses. Be reasonable about it and avoid compromising your health. You may not have much use for cable television or a golf membership right now, but you still need to eat. As part of our 7-step financial recovery plan, we also suggest that you get rid of any unnecessary debt, such as the lease on a second car.

4- Follow your revised budget

Depending on how you typically deal with stress, this can be the most difficult part of our 7-step financial recovery plan. If you’re prone to splurging, it’s imperative that you resist your compulsive spending habits for the time being and that you always follow through on your new monetary decisions. This is not to say that you shouldn’t adjust your budget if you find you were overly optimistic about certain expenses, but keep in mind that you can’t afford your usual luxuries anymore.

5- Update your budget regularly

A key point in our 7-step financial recovery plan is the importance of revisiting your budget every few months. This will allow you to track your progress while adapting to the ever-shifting economic climate. However, be careful not to let your expense budget escalate each time you review it. A slight increase can be expected from time to time as your immediate needs change, but you should always prioritize your short-term financial goals.

6- Pad your income

The most obvious way to increase your revenue is to take on additional work. If your current occupation allows it, you can either volunteer for extra shifts or stay late to accumulate overtime. Otherwise, you may have to get a part-time job elsewhere. Our 7-step financial recovery plan also advises you to develop a passive source of income such as accumulated interest or paid advertisement on a blog. If you’re a homeowner, you can rent out a room as well.

7- Set new financial goals

Once you have achieved all of your short-term goals from the beginning of our 7-step financial recovery plan, it’s time for you to assess your overall monetary situation and formulate long-term objectives. To ensure that you can weather another market decline, your aims should include building a retirement fund (or replenishing it if you already had one), saving a fixed amount of money every month and establishing a more flexible budget. It’s also crucial that you maintain a practical lifestyle that’s adapted to your monetary means and needs.

Making a full financial recovery

Though our 7-step financial recovery plan will help you get back on your feet, keep in mind that the process can be particularly long and arduous, depending on the gravity of your situation and the extent of your responsibilities. Some days will seem harder than others, but it’s important that you never get discouraged. Try to learn from your experience. After all, what doesn’t kill you only makes you stronger — and you’re not dead yet.

7-Step Financial Recovery Plan Provided by AskMen.

Credit cards are hailed as convenient tools, a way to build credit and earn points or rebates. However, there is another side to credit card spending, experienced by many who pay less then their balance month after month and one that can lead to a downward spiral that is difficult to rebound from.

Generations X and Y, those aged from 14-42 are being hit the hardest. Unlike their Baby Boomer parents, they are more likely to start off their working careers already in debt. While student loans and other education related debt make up a great chunk of that for many, credit card debt is also quite high and on the rise for young people-some high-school students even have their own credit cards, something unheard of a generation ago.

So with all that money going to iPhones, PSPs, and the latest designer duds, is this generation just plain spoiled? Not so fast grandpa. Many in this generation are broke-or close to it-but the blame came be placed squarely on starting out in debt and having to struggle with high-interest rates, not on extravagant living.

According to personal finance counselor Sophia Jackson, credit card debt is an epidemic among the under-30 crowd. College students average $2,200 in balances on their plastic, says Bankrate.com. Graduate students have more than double that amount, and high interest rates translate into hefty monthly payments and long-term balances for many.

The bottom line is that most teens and young adults just don’t have the life experience needed to comprehend the implications of paying back their loans or debts when they take them on. And let’s get real for a minute, how can a 19-year-old student be expected to grok the reality of paying back thousands of dollars in college expenses when he’s buying books, food and clothes, excited about the upcoming semester, sports and college life? The numbers don’t have much basis in reality, and it’s a natural assumption to think you’ll be able to pay off the balances as soon as you graduate and land a high-paying job. Combine this with the fact that college teaches you nothing about personal finance and you’re facing a financial mess right at the start of your adult life.

Many will pay minimum payments on their loans for years, either not realizing how much is going to interest just to service the debt or simply not having anything extra to throw at the principal. With young credit, new credit or no credit, interest rates are often in the high double digits, lowering the chance of fast repayment.

Ironically, low credit scores from high debt-to-income ratios, high credit card balances and missed or late payments can affect your job and income potential. Many employers do routine credit screenings and background checks on applicants; security clearances are also in jeopardy for those with bad credit.

A weak economy further impacts your ability to repay loans. When high-paying jobs are scarce, many find themselves jobless for short periods or working lower-paying jobs than they expected. Without lifetime savings or investments, the younger generation falls into the trap of adding on more credit card debt or, at best, is only able to pay minimums on current debt and not get ahead of their bills.

Sounds pretty grim. But there is hope. The best solution is for Generation X to avoid new debt and pay off old debt as aggressively as possible, and for Generation Y to avoid the debt trap at all costs. It would be wise to put off credit card use at least until entering the workforce and becoming more familiar with personal finance, basic budgeting and personal accounting.

The young who are able to invest for retirement, rather than simply service their debts, will be in the best position for financial success. Invest what you can now, even as little as $100 a month will likely return huge dividends when you retire.

A basic understanding of personal finance, debt management, budget management and accounting will go a long way toward helping you avoid the debt trap. Learn how to manage your money and you may even leave a legacy for those generations to come.

Mint Tip: Pay your credit cards in full each month:
The average American carries $8,500 in credit card debt. At a minimum payment of $100/mo, it takes 6.7 years, and $4,257 in finance charges before you’re in the clear.

Here are the raw stats:

Every business reports your financial management activities to the three major credit bureaus—Experian, TransUnion, Equifax. Your financial activities dictate your FICO (Fair Isaac Corporation) score, ranging from 300 (worst) to 850 (best), and this is what lenders, landlords and employers use to determine your credit risk. The lower the score the more likely you’ll be considered a risk. It also dictates interest rates. A low score can mean thousands more in interest payments, as you can see in this table:

Here’s how FICO scores affect rates based on a 3-year auto loan for $15,000.*

*from myfico.com

Your credit history can haunt you for the rest of your life so it’s a good idea to follow this easy three-step-plan to build, maintain and (if you must) repair your credit.

#1 Build Your Credit

Open Checking/Savings Accounts: You can open an account for as little as $10 at some banks. The ability to maintain your accounts will show lenders that you can reliably handle money. Opening an account is particularly beneficial for those who haven’t already established credit. Bounced checks mess up your credit report, so use that check-writing feature wisely!

Apply for a credit card: Part of your debt planning should include determining what type of credit cards you should sign up for. Get a credit card with low interest rates (not just intro rates), no annual fees, and a generous grace period. Try not to carry a balance so you don’t end up paying interest. Retailer cards are easy to get but have high interest and worse penalties, so only get one if you’re able to pay in full each month. Secured cards require a deposit, which becomes your limit. Be careful about missed payments as they come out of that deposit. Be aware that secured cards also have high interest rates.

Don’t get lots of credit at once: When you get credit, it goes on your report so if you open many accounts at once, they drag down scores and worry lenders. Even applications stay on your report for two years. If you need more than one card, wait six months before opening another. Wise financial management practices dictate that you use your first card responsibly, especially during the first six months; doing so will allow you to get better rates on future cards.

Piggyback on someone’s credit: If family members with established credit add you to their credit cards, your credit will reflect upon theirs. Conversely, so-so or bad credit from your family members may be something you’ll inherit as well, if you sign on as additional members and users of their credit cards.   Also, if they co-sign a loan with you and you default, you’ll be impacting their credit, so be careful. 

#2 Maintain Your Credit

Get Your Credit Report: Use annualcreditreport.com to get all three reports once a year for free. If you find mistakes, immediately contact the credit agencies since discrepancies stay until you take care of them. If your report is bad due to debt, start working on repairing your report. Avoid companies that offer to fix your credit:  many are reputed to be rip-offs and have been reported to use illegal practices. The only way to improve credit is to pay debts and dispute false charges.

Mint Tip: If there are unauthorized charges and you suspect identity theft, immediately visit the Federal Trade Commission Identity Theft Site.

Get Your Credit Score: Although you can receive credit reports for free, it’s not typically the case with credit scores. Credit scores cost $15.95 at annualcreditreport.com or myfico.com. Cheaper sites calculate their own scores, and are often inaccurate. Just like credit reports, you have three scores. Check all of them if you’re making a major purchase. You don’t want to get caught off guard if the lender checks one that you weren’t able to review beforehand.  Recently, a new service called CreditKarma.com was launched to provide free credit scores to the public. The downside?  You’ll have to supply your personal information to this new company before you’re able to review your scores.

Don’t close old accounts: Once you’ve paid off your credit card accounts, don’t close them off!  Older accounts will show that you have long-lasting credit history, and this will indicate that you have financial stability. If you close your available credit, it’ll raise your debt-to-credit ratio. 

#3 Repair Your Credit

Pay in full every month: If you carry a balance, you’ll pay interest. If you’re unable to pay in full, pay at least the minimum on all debts. Paying at least the minimum will improve your credit history and score, which will give you leverage for lowering your interest rates.

Pay on time: Late payments mess up your report for years. It can also raise interest rates. Any late payments you make on any one bill will affect the interest rates you have across all your credit accounts. If you have trouble remembering due dates, have Mint remind you when bills are due and set up auto-bill pay online through your bank.

Lower your debt-to-credit ratio: Your debt-to-credit-ratio is what you owe versus how much credit you have. If you owe $5,000 and have $10,000 in credit, your ratio is 50%. The lower the ratio, the better. Aim for a ratio that’s less than 30%. A quick way to lower it is to increase your credit line; but, don’t spend more just because you happen to acquire more credit.

Related Mint Tips:

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In the movie, Wall Street, ruthless stockbroker Gordon Gekko preached the mantra “greed is good,” but today it’s “green is good,” as his yuppie lifestyle gets replaced by attempts to save money while saving the planet. Here are six easy ways to go green.

1. Move to a more walkable neighborhood

With gas prices topping $4 a gallon, living in a place where you can walk, bike, or take public transit can save you as much as $5,000 a year on gas (according to research by the Congress for New Urbanism) while at the same time reducing greenhouse emissions, slowing suburban sprawl, and kick-starting the local economy. To see how your neighborhood rates, visit WalkScore which recently ranked the 40 largest cities in the country on how close residents were to markets, cafes, restaurants, and shops.

2. Work from home

If you’re able to work at home you can help cut down on traffic congestion and the resulting pollutants released into the air. Since even public transportation costs money, even telecommuting one day a week can save you as much as $1500 a year and allow you to spend more quality time with your family.

3. Shop responsibly

At EcoPerks, each time you purchase a product from one of its 500 participating retailers, you earn points for yourself and your chosen environmental cause. Every dollar you spend is converted into a matching donation. You can also calculate your carbon footprint and purchase eco-friendly products and services from the site.

4. Think global, eat local

Buying your groceries at the local Farmer’s Market, instead of a national supermarket chain, keeps money in the local economy and in your pocket. By cutting out the middleman and buying directly from the farmers that grow your food, you’ll save money and be able to choose from a wider variety of incredibly fresh produce. Remember to bring your own reusable shopping bag (preferably one made of canvas, not paper or plastic).

5. Ban bottled water

Want great tasting, high quality water? Just turn on the tap. Most cities in the developed world have perfectly good water and if you are really worried you can always use a water filter to purify tap water. In fact, according to a four-year study conducted by the Natural Resources Defense Council (NRDC), one-third of bottled water tested contained levels of contamination. NRDC found that city tap water is subjected to much more rigorous testing and purity standards. Bottled water is one of the biggest scams going and not only are you paying for those plastic bottles, they are extremely harmful to the environment.

6. Recharge your batteries

A staggering half a billion batteries are purchased in the US each year and when they are done powering your personal electronics they go straight into landfills, releasing toxic chemicals into the environment. Switching from disposable to sustainable batteries, which cost a bit more upfront but can be used as much as 3,000 times, provides an incredible cost savings in the long run and can have up to 30 times less impact on the environment according to a study done earlier this year.

Aaron went back to our roots for his two, five word speeches when accepting the Webbys for Best Financial Service and Best Banking and Bill Pay site, saying:

“Money for nothing … And your Mint’s for free!”

This was the unofficial theme song during our TechCrunch launch a year ago. Leave it to Aaron to find an 8 word solution to a 2 X 5=10 word problem.

Now, this wasn’t one of the dozens of great ideas suggested by our readers, but don’t fear. We’re going to give out a bunch of t-shirts anyway!

Here are the winners (email me your physical address, gender and preferred t-shirt size if you’ve won):

1. “My mind on my money. My money on Mint.” Bish (This was Aaron’s close second choice.)

2. “Saved all year for this.” Phil

3. “This wasn’t in my budget.” Bao

4. “Afford yourself. Get Mint.” jcb

5. “Credit card, bank account, 401K. Managing your money every day.” Andrea H.

6. “Mint even simplifies speeches.” Michael

7. And my personal favorite, a virtual haiku which ignored all the rules we/webby laid out:

“no more where’s my password.
all my money is here
scared at first, now rich
i can see it working
wish the government tried Mint”

Another chance for competition and creativity: Anyone up for rewriting the lyrics to either the Dire Straits “Money for Nothing” (1988) or Snoop Dogg “What’s My Name” (2005) to make them into Mint theme songs? More prizes to anyone submitting an entry we’re wow’ed by. The bar has been raised!

Thanks for all your great suggestions!
The Mint Team

Career Planning

During these tough economic times, you may find that the only work you can land is temporary, but don’t despair: Suze Orman worked as a waitress for 7 years before becoming a renowned financial management guru.

Mint Tip: For great web sites to aid you on your job search, you can visit Craigslist, Indeed.com, Simplyhired, or Yahoo!HotJobs.  And continue to tap your school’s career center for potential employment leads.

Moving and Housing

If you do move, get your friends and family’s help to keep moving costs down.  And you’ll likely want to find a roommate to keep your monthly rental costs down, too.  You can connect with potential roommates through online sites such as Craigslist, roommatelocator.com, roommates.com, metroroommates.com, roompals.com, and roomster.net, just to name a few.

Food

Restaurant food costs more than home cooking.  To help you plan your healthy and cheap meals at home, you can check out Amazon.com for a few highly rated cookbooks and recipe books like “Cheap and Easy Cooking; Cheap, Fast & Easy Cookbook” and “Cheap.Fast.Good!”   Join your local CostCo or Sam’s Club, use coupons at local grocery stores, plan out your meals carefully and be creative with your leftovers.  This is one area of your personal budget where spending some time can save you significant money.

Transportation

Avoid buying a car unless it becomes absolutely necessary, as monthly car payments, insurance and maintenance costs can weigh heavily on a tight budget. Public transportation is not only good for your bottom line, it’s also great for the environment.  Or use a car sharing program such as Zipcar.com, which allows you to rent a vehicle on an hourly or daily basis. Finally, if it turns out that you’ll really need to own and drive a car, then buy used. New cars depreciate rapidly and many people end up owing more on their car than it’s worth.  Check out our car buying advice in:  Young Professional’s Car Buying Guide. Have you faced some financial challenges we haven’t covered here? Anyone find other sites or tips helpful in making ends meet as a new grad? Share here…readers (and Mint employees not that long out of school ourselves) will thank you! Related Mint Tips: Personal Financial Planning Online Financial Planner Online Personal Financial Tracking Personal Financial Advisors

Focus on reducing your debt.
With a steady income, you can now handle some of your financial management issues with confidence, and you can start tackling any debt you have head on. Always pay your bills on time and, if possible, pay more than the minimum — you’ll reduce your debt faster this way. If you’re committed to paying the balance in full each month, you should look into using reward cards for their benefits. It’s also important that you control your spending so that you avoid racking up additional debt. Some great ways to avoid overspending? Wait 24 hours before making any decisions that involve major purchases. Compare your typical monthly expenses over time, or versus your neighbors using online tools like those offered by Mint.com.

Establish a 401K or IRA.
Retirement seems far away, but the more you save now, the more you’ll have when you retire. If you’ve got a healthy savings habit, the power of compound interest will ensure that you also get a healthy retirement. Some retirement financial management advice to consider:

• if your 401K has an employer match, contribute the maximum pre-tax amount
• And invest enough to your 401K to get the full match.
• if you don’t have an employer-sponsored retirement plan, or if you’ve got the extra money after maxing out your 401K, set up a traditional or Roth IRA. Find out which type of IRA you’re eligible for here.

Get sufficient health care coverage.
If your employer doesn’t offer coverage, see if you can be covered under your spouse or significant other’s health insurance. If not, pick up your own health insurance. If you’re in a low income bracket, visit the Centers for Medicare and Medicaid (www.cms.hhs.gov) for information on programs that may help you, such as SCHIP (a program for children) and Medicaid (a program for individuals and families). For free and low-cost prescription programs, visit TheMedicineProgram.com (http://www.themedicineprogram.com/) and Partnership for Prescription Assistance (https://www.pparx.org/Intro.php).

Get the other coverage you’ll need.
At a minimum, you’ll need auto, renters’ or homeowners insurance, and disability insurance. But the good news is that most insurance companies will give you a discount if you have multiple policies with them. Also, don’t worry about life insurance for now unless you’ve got dependents.

Plan for long-term goals.
It’s never too early to set the stage for fulfilling your long-term goals. Here are a few ideas to help you keep your focus on the future:

• Visualize your goal: think about how fulfilling it would be to own a car or home, to embark on a trip around the world, to start a business or even to retire early! Then commit to making it happen.
• Plan your budget carefully and watch your spending. Look into using personal money management software such as Mint.com, which can make it much easier for you to manage your personal budget and find ways to save. Any savings you achieve should be applied to your long-term goals and plans.
• Commit to putting away a certain amount of your paycheck monthly.
• For longer-term goals, consider investing your money in the stock market.

Develop sound tax strategies.
The biggest chunk you’ll be paying out of your paycheck will be going to the tax man, so why not check out these tips to maximize your take home pay?

• By using the IRS’ withholding calculator, you’ll be able to determine the right number of tax deductions to claim. This will prevent you from overpaying or underpaying your taxes.
• Visit PaycheckCity.com to review their paycheck, 401K, 403 (b), and savings calculators. Figure out what it will take to pay just enough so you break even every year.
• If you have business-related expenses, save those receipts. You may be able to write them off during tax time.

By heeding these suggestions, you’ll be well on your way to successfully managing your finances. Keep in mind that tools like Mint can make your financial management tasks easier by providing you with simple budget tools and alerts. Do you have a new job and are you using Mint to track your spending? If so, we’d love to hear how Mint has helped you find and save money!

Related Mint Tips:

Financial Planning Software
Financial Planner
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THE DETAILS: Home foreclosures, and the rate of homes entering the foreclosure process, rose to a record in 2007 as homeowners battled slumping house prices and spiking loan payments.

THE DEBATE: Who is to blame? The borrowers – for their questionable financial management and for taking out loans they did not understand and could not afford? Or the lenders – for offering loans that they sold as being less expensive than they really were?

COMMENTARY: The subprime lending debacle has its roots in a combination of factors. Aggressive real estate agents, lenders, home developers, banks and financial institutions got involved in the mortgage lending, management and investing process. The Fed has been criticized at both ends of the issue — for doing too little and too much: for not doing enough to prevent the crisis from happening, as well as artificially assisting homeowners in trouble by providing bail-outs and protections after the fact.

In my opinion, what we should have is a free market in which you’re held responsible for your own decisions. If those decisions are wise, you’ll profit; if they’re reckless, you’ll have only yourself to blame.

We’re Not Tracking Finances, Spending and Borrowing Well Enough

Borrowers willingly took on these mortgages. They are the ones with the most intimate knowledge of their own financial situation, risks, job stability and future prospects. They are the ones who are responsible for their own financial tracking. That’s information no credit score or income statement will ever reveal. As such, it is their responsibility to read and understand the terms of their loan, and determine their loan cost now and into the future. People who make poor financial decisions or speculate carelessly will lose money — and that’s the harsh reality and efficiency of a free market.

To bail-out such borrowers (as the “Anti-Predatory Lending Act of 2007″ does) sends a horrible message to everyone else: that if you borrow to own or speculate in housing that you cannot reasonably expect to afford, and if the market turns against you, then you can count on a government hand-out or a legislated low-rate to soften your fall.

Imagine that we applied the same logic to credit cards. Lenders “ought to know better” than to approve a new card with a $20,000 limit, if the borrower already has significant credit card debt. Is it the fault of the card company, or is it the fault of the consumer who cannot control their spending, who hasn’t spent enough time tracking finances, and has requested yet another card to fuel their shopping sprees?

The Real Culprit of the Subprime Mortgage Crisis?

Surprisingly, few in the media are calling out the original culprit here: a government policy of monetary manipulation that pushed interest rates to artificial lows. This, along with “pro-housing” legislation and tax-breaks, sent a signal to some that housing was a can’t-miss proposition. But when interest rates are decided by the whims of bureaucrats, the party can end at any time…and unfortunately, it looks like it has.
Further Reading:

Expenses Tracking
Debt Planning
Finance Management
Expense Planner
Track Spending

As the year end approaches, you may find yourself reflecting on your financial magagement…did it get better or worse this year? And do you have a plan for next year which will get you to where you want to be, financially, this time next year? If you have a student loan, how much can you pay off in 2008? How will you lower your taxes? Or your out-of-pocket medical costs? Can you pay your bills and get started on saving for some big ticket item, maybe even a home?

Some people can develop a solid and effective financial mangement on their own, but others have complicated financial situations, and need help. If you have the time, you can probably learn much of what you need to know to act as your own financial advisor. But most people don’t have time or the confidence to play that role solo, especially when the stakes are high (ex: it affects family members).

That’s where a financial advisor comes in. A good one can assess your current financial situation, help you carve out a financial path, and then help you move down that path to help you achieve your life goals.

Mint’s Point of View

Financial advisors aren’t necessarily just for large corporations or the rich. They can help you plan for major expenses, investments, and help you prepare for life altering events like marriage, children, and college. They can help you manage your budget, refinance your mortgage, even lower your taxes.

Seven Steps to Find the Guru for You

If you decide you need a financial planner, you should know where to begin. And you should know how to pick one that will help you save and make more money. So, how do you find someone to worry about your money as much as you do?

1. Decide what your financial situation calls for. Do you need to establish or revisit your retirement plan? Do you want to buy a new car? Or put a down payment on a home? Are you trying to decide between an IRA and a 401k? Your goals can be broad or specific, long-term or short-term. What progress you have made so far in achieving your goals. Do you have a time table? What stands in your way?
2. Decide on a budget for advice, and the way you’d like to pay for it. Some advisors are fee-only; some commission only. Some charge a combination of fee and commission, and others offer salary-based services. Commission-based payments only save money if you keep the same investments for 7 years. Since the average lifespan of mutual fund ownership is 2 years, you’ll end up paying more. If you’re unsure, stick with the fee-based plans.
3. Use referrals and the Internet as starting points. Referrals shouldn’t be your definitive source of information. What works for a friend or colleague might not work for you. Sites like www.wiseradvisor.com and www.myfinancialadvice.com provide unbiased, criteria-based searches as opposed to zip code searches.
4. After your initial research, make a list of 3-5 financial advisors whom you’d like to meet. You can request a Form ADV from each advisor to learn more about them before you meet. That’s a form they must file with the SEC containing information about their services, fees, investments, business activities, and background information.
5. Hold initial interviews with your short-list. And confirm that the initial consultation will be free. They shouldn’t be charging you for an interview; this is their opportunity to sell you on their services. Here are some of the critical questions to ask during the interviews:
   • What licenses they hold, in which states
   • What services they provide
   • Their investment strategy
   • How they would prepare and implement your plan
   • Who their existing clients are (ask for references)
   • The average size of their portfolios
   • How their portfolios have performed
   • Their fees and/or commission fees
   • If they sell financial products
6. After the interviews, get critical. Did they seem straightforward and honest? Did they listen well and come up with good ideas for your financial plan? Did it seem like your situation was uniquely analyzed? Consider how well you got along with the financial advisor. Did you sense a rapport?
7. Lastly, contact their references and run a background check. Federal and state laws require that brokers, advisors, and forms be licensed and registered with the SEC. Sites like www.sec.gov and www.finra.org provide databases that allow you to investigate potential advisors. If you’re unsure about independent advisors, go with a major brokerage firm. Use sites like the National Association of Personal Financial Advisors (www.napfa.org) to find comprehensive question sheets and explanations of credentials.

By following this seven step plan, you’ll give yourself a great gift in the New Year: an expert partner in your quest to achieve some more financial success, goals and peace of mind. It’s a great head start on your New Year’s resolutions.

And we, of course, encourage you to Sign Up Now for Mint.com if you’re going to be looking for a financial planner. We can make it easy for you to get an accurate picture of your financial situation in time for your advisor interviews.