Life is full of surprises. Some are welcome. Others, not so much. While we understand and accept this, we can’t help but wish we could control external situations, especially ones which would eliminate a lot of stress.
So, while we may not be able to control the economy, or fluctuations in the stock market, fortunately, there are several ways to boost our own financial security. It all begins with creating a sound plan that evolves as your needs change.
To help you get started, we’ve put together a list of what you can do:
- Save as much as you can. Do you really need a new car at the moment? Do you have to have the latest smartphone? Time to rethink your priorities and only buy what you absolutely need.
- Build an emergency fund. You should aim for least three months’ income in liquid savings or a money market account.
- Make a budget. Get a realistic picture of your income and see where you can trim your expenses.
- Think long-term. It’s never too early to plan for retirement, college or other major expenses. The sooner you start, the more time your money will have to grow.
- Choose cash over credit. Try to avoid high-interest fees, so only charge what you can afford to pay for in full when the bill comes due. Now is not the time to take on new debt.
- Save for retirement. You should take advantage of company-sponsored retirement plans and employee matching programs, if they are available. Contributions to them are often tax-deductible.
- Make a will. All adults should have one, especially if you have dependents.
- Contact your financial professional. Don’t be mistaken that you should wait until things are calmer before acting on your long-term financial goals. Change is constant, so now is the perfect time to speak with a financial professional who can put you on the path to prosperity.