Take control and banish these 6 threats to your finances.

1. Not budgeting: Having a spending plan ensures you always have enough money for the most important things, and a budget also helps you identify potential spending cuts and savings opportunities.
2. Identity theft: Protect against identity theft by shredding documents such as receipts, credit card offers, bank statements and other papers that contain personal information. Make sure to create strong passwords for your online accounts,
3. Lack of emergency funds: Nearly a quarter of Americans have no money stashed in an emergency savings account and just 31% have enough to cover six months of expenses. Build an emergency fund by setting and sticking to a budget, making monthly savings goals and looking for ways to add to your income.
4. Debt: With mortgages, car loans, student loans and credit card bills, achieving debt-free status can feel impossible. Create a plan to pay off debt. Cut back on spending and make minimum monthly payments while focusing on paying off high interest rate debts (like credit cards) first.
5. Poor credit score: A poor credit score (under 619) could lead to rejections on loan applications, higher interest rates on approved loans, it could even affect your ability to rent an apartment or qualify for a job. Paying your bills on time, reducing existing debt and steering clear of new debt can help improve your credit score.
6. No life insurance: Life insurance protects your loved ones, providing them with the resources to cover funeral costs, debts, estate taxes and other expenses upon your death. The amount of life insurance you need depends on your financial situation and number of dependents.

If you're concerned about any of these threats, contact us and we'll help make your financial future less scary.

Luers & Dyer, CPAs, LLP is a full service accounting firm with offices in Julian and San Diego. For more information about our company call (760) 765-0343.