Stop Worrying and Start Planning Instead!
Too many people worry about their financial future. Worrying will not help you meet your financial goals, nor will it enable you to keep real financial concerns at bay. What you need is a solid plan of action, as well as a strong financial planning team behind you.
Your financial specialist can assist you in finding the best strategies to apply to your circumstances. However, you can also begin to take action now in a variety of ways.
Consider these steps, so you may start taking a proactive approach to your finances and your future:
- Set aside a specific amount, and then place that regularly in your savings accounts or other investments. You might be surprised by how substantial the compounded interest can be for your earnings. The beneficial effects of such compounding will be greater during longer investment periods. If you want to calculate how fast your savings might grow, click here.
- Become better informed. When you understand the nuances and implications of your investments, you will have more opportunities to make the best investment decisions for your circumstances. If learning about investing does not interest you, hiring a money manager is another viable option. This person can make investments on your behalf, so you can be sure that you are maximizing your funds as much as possible.
- Your investments should be diversified, so you can recover more easily if some of them do not yield the return you expected. To be prepared for emergencies, keep some of your money in an investment account that may be converted easily back into cash. Putting all of your “eggs” in one “basket” is generally not advisable.
- You should know your net worth, so prepare a balance sheet on an annual basis. This document will name of all your assets after the subtracted amount of all of your debts. To determine whether you are meeting your financial objectives, you may assess and compare your yearly balance sheets.
- Develop a clear idea of where you wish to be financially when you retire. During retirement, a high number of Americans must depend on assistance from the government (or others). If you remain focused and have the right kind of plan in place, you could be one of those who are able to retire in comfort. To calculate the amount you need to save for retirement, click here.
- Review your financial plan on a regular basis, and update it regularly and as needed. When you need to, make adjustments to previous investment choices. By staying on top of your planning and investments, you will ensure that you meet your financial goals.
- Avoid using credit to buy consumption items, such as electronic or household furnishings. You should not buy things that will decrease in value unless you have the cash to pay for them. On the other hand, when you purchase a home – which can appreciate in value – borrowing money is typically a sound plan.
- Every month, pay off the balance of your credit card. You should utilize a credit card for convenience. Do not regard it as a source of long-term financing. Interest rates for credit cards are far too high to employ them for anything but short-term convenience purchases.
- To make the most of your tax return, keep an eye on your investments. A greater return of two percent can make a surprisingly significant difference with regard to the growth of your investments. To calculate the monthly yield needed to reach your savings goal, click here.
- To be sure that you are not over-insured or under-insured, your insurance agent should review your insurance needs annually, if not more often. If you sell or purchase any property, remember to contact your insurance representative.
We know that planning for your future can seem overwhelming, and we are here to help. To get the assistance necessary to properly plan your finances, feel free to contact us today.