Ways to Help Make Your Own Financial Luck
Have you ever found a twenty-dollar bill on the street? Won a prize for a giveaway or found a four-leaf clover? Odds are you felt pretty lucky!
When it comes to finances, there are days when we wish we could just capture some of that luck. We find ourselves wondering, Wouldn’t it be nice if we found out that we won the $20 million dollar lottery?
While we certainly don’t recommend rushing out to buy lotto tickets to turn your finances around, there are a few strategies you can embrace to help make your own financial luck:
1. Set some treasure aside for when you need it most.
There’s nothing worse than coming into a bit of bad luck. Your car breaks down, a family member breaks a bone, or suddenly you need a new water heater. Life is full of these little inconveniences that can pop up when you least expect them. The best way to turn this bad luck into good luck is to have money saved up to cover these emergencies in advance. We recommend saving up a few thousand dollars for your “rainy day fund” or “emergency fund.” With this in place, this can help prevent derailing your entire financial plan.
2. Build some momentum.
If you’ve got debt, it can be hard to feel like there is an end in sight. Whether that be credit cards, student loans, car payments, or your home’s mortgage, the best way to create your own luck is to pay more than the minimum. We recommend starting with your highest-interest loans and pay as much extra on the principal as you can afford. You’ll be surprised how much faster you’ll start to pay down that debt! And once you’ve paid off your highest-interest loan, you can roll over all that momentum into your other debt.
3. Hide your loot.
Depending on your financial situation, you may want to consider to start saving up for your retirement by investing, whether that’s in a 401(k), traditional Roth, or a Roth IRA. Think of these investments as hiding your loot away for when you retire. When it comes to funding your retirement, time and consistency are your allies. Over time, we want to help you work towards and achieve your financial goals.
4. Protect who you love.
No one can predict the future, which is why it is so important to plan today how your family will be taken care of should you pass unexpectedly. We recommend getting a life insurance policy that will cover between 7 and 15 times your income. This will ensure that your family will have plenty to live off of until your children are grown and it could even help pay for your children’s college educations.
5. Pass your luck on.
You usually can’t predict who will be lucky, but in this case, you have the ability to set your children up well for the future simply by teaching them about finances early and setting aside any finances you want to pass along to them. You can help your children avoid the same mistakes you made and jumpstart their financial luck by teaching them the importance of saving money, avoiding debt, and investing early on. And we think starting a legacy that prioritizes good money management is pretty lucky!
There is no magic bean or four-leaf clover that will miraculously fix all your finances. However, putting a strategy in place can help you plan for your future!
To create a plan for your unique situation, schedule a free meeting with one of our financial advisors. We are ready to help turn your luck around!
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.
Insurance products are offered through the insurance business 210 Financial. 210 Financial is also an Investment Advisory practice that offers products and services through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. AEWM does not offer insurance products. The insurance products offered by 210 Financial are not subject to Investment Advisor requirements.
Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.
This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.
210 Financial is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by 210 Financial. 1714698-3/23
Content prepared by Savage Content Collective
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