Whether you’ve retired a few years ago or you’re just starting your first job, did you know that careful financial planning will significantly improve your overall wellbeing for the years ahead? Here are a few tips for you to consider to improve your finances and to improve your
Set a Budget
Living within your means it the single most effective thing that you can do to ensure that you aren’t in debt or creating a difficult financial climate for you and your family. Spend some time budgeting before you get your paycheck and then stick to it!
Don’t Spend Your Savings
Many people spend every dollar they make, but if you want to plan for your future, you need to be saving as much as possible. But there’s the trick: Don’t spend your savings! Every dollar matters and there will come a day that you need it! Once you have a little money in the bank, designate what that money is to be used for. For example if you have $2000 in the bank, perhaps set $1000 of it aside only to be used for emergencies, $200 for future car issues, $200 for medical bills, and $600 towards future investments.
Start a Retirement Account As Early As Possible
Starting a retirement account, such as a 401k or a Roth-IRA, as early as possible is extremely important. These accounts let you add money, tax free, into an account and it will grow over time. If you do some research on compound interest, you’ll see that the earlier you start investing in your retirement, the more that money grows. In fact, if you put in a small amount early enough, you may end up with the same retirement benefits as you would if you waited for several years and put in a very large amount.
Talk to a Professional
Sometimes they’re available for free conversations through an employer or a community outreach program, but speaking with a financial planning professional–at any stage of life–is always a good idea. Begin asking around or even talking to your pastor about bringing one in to speak to the congregation.