4 Tips to Ensure a Healthy Financial Future
4 Tips to Ensure a Healthy Financial Future
Over the last year, we’ve experienced unparalleled uncertainty about the future. Will I still be employed? Will I get sick? Can I make my house payment? How long will my children be virtually learning? What will the future look like?
All of these questions, and more, are enough to cause fear and worry about the future. But when it comes to your finances, the future doesn’t have to be as uncertain! Here are some strategies you can put in place to move towards a healthy financial future:
1. Save for a rainy day
There is no crystal ball to predict when hard times will come or when you may have additional expenses. However, you can save for those events now so it doesn’t become an emergency when your car needs an extra repair or when your child needs a trip to the ER because they took a tumble off their bike. We recommend saving at least a couple thousand dollars each year to cover these “emergencies.” Because if you plan now to cover them, they won’t feel like an emergency expense when they happen!
Breaking it Down: If you put aside $150 each month, you will have saved $1,800 after 12 months to protect against any unexpected expenses!
2. Pay more than the minimum
A recent report shared that three out of every four households in America have some kind of debt. By taking your highest, interest-accruing debt and paying more than the minimum payment, you can not only pay off your debt faster but you will also pay less overall. When you pay the additional amount, be sure you are indicating that the extra amount is going to pay off your principal balance.
3. Protect your family
Whether you currently have children, are planning to have kids, or want to be sure you are taken care of after retirement, now is the perfect time to start planning. You can protect your family by purchasing a life insurance policy, but you can also put aside funds for things like daycare, your children’s college, and funding your retirement. Each family’s goals may be different, so a financial advisor can help you crunch the numbers to determine what strategies you will need to reach your specific goals.
4. Plan for the future
One of the largest future expenses is your retirement. There are all sorts of different types of funds. You may already have a 401K, an IRA, or something else. And you may just be getting started! As the stock market varies, it’s important to keep contributing to your investments. The old adage is to buy stock when it is low and then sell when it is high but, as no one can predict when that will be, it is generally recommended to keep contributing to your investments so they pay off in the long run. Working with a financial advisor is a great way to help you make the right decisions with your investments.
You may not know what the future holds, but you can put a plan in place to have a healthy financial future. If you want to learn more or get a customized plan for your financial goals, we’d love to talk with you!
210 Financial is more than just numbers. The “210” in our name stands for a childhood home that represented safety, love, and family. That is what we want to provide for everyone that we care for. Welcome home. Welcome to 210.
Content prepared by Austin Savage Co.
Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and 210 Financial are not affiliated companies.
We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.
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