No one can perfectly predict the future. There will always be unforeseen bumps in the road and unanticipated difficulties. However, by taking a proactive approach to your future, you can set yourself up for success, regardless of what life throws at you. Not sure what you can do to be proactive? Here’s a couple things you should be thinking about.
1) Retirement Accounts. Most of us plan to retire at some point in life, some earlier and some later. Having a solid retirement account can help ensure that you are financially stable when the time comes to quit working. When it comes to retirement accounts, it’s best to begin early to ensure that your investments have the maximum amount of time to compound. Many employers offer retirement plans that allow you to automatically contribute some of your paycheck each month to an investment account. If your employer doesn’t offer a retirement plan, you can set up your own through your local financial advisor or broker.
2) Insurance. If you were in a serious car accident today and it permanently impacted your ability to work and provide for your family, would your family still be financially stable? If you’re not sure, you probably should consider getting disability insurance. This type of insurance provides a payout in the case that an injury or illness impacts your ability to work and provide financially. You can buy a policy through your local insurance provider or, in many cases, your local financial advisor.
3) An “Emergency Fund”. Most financial planners suggest that you have somewhere between three and six months of living expenses saved up in an easily accessible savings account. For most people, this is anywhere between $6,000 and $30,000. An emergency fund will give you the flexibility to handle any unanticipated expenses or situations that arrive. Lose your job? You’ll have three months to find a new one. Car break down? You’ll have the funds to buy a new one.
4) A budget. None of the things listed above are out of the reach of even the most average income level. They do however require discipline to achieve. Let’s be honest, it’s more fun to go out to dinner than it is to contribute to a retirement account. And that’s where a budget comes in handy. A budget will help you identify where you are spending too much and where you’re spending too little and, if followed diligently, can make sure you end up exactly where you want to be financially.</div>
1) Retirement Accounts. Most of us plan to retire at some point in life, some earlier and some later. Having a solid retirement account can help ensure that you are financially stable when the time comes to quit working. When it comes to retirement accounts, it’s best to begin early to ensure that your investments have the maximum amount of time to compound. Many employers offer retirement plans that allow you to automatically contribute some of your paycheck each month to an investment account. If your employer doesn’t offer a retirement plan, you can set up your own through your local financial advisor or broker.
2) Insurance. If you were in a serious car accident today and it permanently impacted your ability to work and provide for your family, would your family still be financially stable? If you’re not sure, you probably should consider getting disability insurance. This type of insurance provides a payout in the case that an injury or illness impacts your ability to work and provide financially. You can buy a policy through your local insurance provider or, in many cases, your local financial advisor.
3) An “Emergency Fund”. Most financial planners suggest that you have somewhere between three and six months of living expenses saved up in an easily accessible savings account. For most people, this is anywhere between $6,000 and $30,000. An emergency fund will give you the flexibility to handle any unanticipated expenses or situations that arrive. Lose your job? You’ll have three months to find a new one. Car break down? You’ll have the funds to buy a new one.
4) A budget. None of the things listed above are out of the reach of even the most average income level. They do however require discipline to achieve. Let’s be honest, it’s more fun to go out to dinner than it is to contribute to a retirement account. And that’s where a budget comes in handy. A budget will help you identify where you are spending too much and where you’re spending too little and, if followed diligently, can make sure you end up exactly where you want to be financially.</div>
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