Many
of us are familiar with the expression, “failing to plan is
planning to fail.” —when it comes to financial goals and objectives—this old
adage still rings true.
In
fact, it may be more relevant than ever.
It
isn’t always easy for some americans to make financial headway.
With pensions in decline and interest rates near historic lows, it
usually takes persistence and sound planning in order to get ahead.
Not
sure how to begin? That’s okay—it’s easy to become overwhelmed
if you think about all your needs at once. Instead, try taking it one
step at a time, starting with the basics:
Build
an emergency fund—No
matter where you are in life, it’s important to set aside 8-10
months of living expenses. You don’t have to do it all at once, but
every dollar you save today is a dollar you won’t have to borrow if
something unexpected happens.
Protect
your home and family—Most
of us have people who depend on us to keep a roof over their heads
and food on their plates.
That’s
a big responsibility, but it’s one life insurance can help you
meet—even if something tragic takes you away. You can start with an
affordable term life plan at first, and then add more coverage as
your needs and budget grow.
Prepare
for major expenses like college—As
a parent or grandparent, you naturally want the best for your loved
ones. Now’s the time to start a college or wedding fund so they
won’t have to go into debt to make their dreams for the future come
true.
Get
ready for retirement—There
are plenty of ways to set aside money for retirement: 401(k)s, IRAs,
and fixed deferred annuities* just to name a few. But they all have
one thing in common—the sooner you start, the better off you’ll
be in the long run. Try to increase your contributions over
time—perhaps 1% with each raise—or, if you are age 50 or older,
look into some of the ‘catch-up’ provisions that may allow you to
contribute even more.
While
the recession forced many of us to take a step back financially, it
also helped refocus our attention on the things that really matter. A
sound financial game plan can help us accomplish many things—but
perhaps the most important is making sure we never lose sight of them
again.
This educational, third-party article is provided as a courtesy by Alberto Romero for educational purpose only.
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