Setting financial goals can be a chore, let alone following through with them. But in an unpredictable world, you will be thanking yourself for setting goals that you can work towards in order to have a more financially stable life and retirement. By setting and sticking to certain goals, you can feel confident about having enough money to retire on, you will see debt disappear, and have saved enough money for a significant emergency fund. At Aureus Wealth Management, our financial advisors are here to help you set financial goals and to help you plan for your life.
Get Out of Debt
No matter what kind of debt you have incurred, from a mortgage to car loans, to credit card debt, it will eventually need to be paid off; and sooner the better. “Good” debt like a mortgage is still a payment that brings down your monthly income. The sooner you pay off debt, the sooner you will be able to really control your finances and your income. You will be able to put more money towards savings.
Plan for an Early Retirement
Getting an early start on this goal is essential to having a successful retirement. Consulting with a financial planner will definitely help you to understand what compound interest is, how to get the most out of a 401(k), and a Roth IRA. By planning on retiring a few years ahead of the typical retirement age, even if you miss your mark, you will have put yourself in a position where you will be financially set for retirement.
Not only is an emergency fund necessary, but having one that is large enough to cover any unforeseen expense is essential. Typically seen as a short-term goal because it may only take a couple months to put a month’s worth of income into savings when you continue to build that fund, it can become a downpayment for a house, cover an unforeseen a job loss, or will cover any medical bills if necessary.
Live on Less
One of the best ways to ensure that saving occurs is to live on less than what you make. This can be challenging with several monthly payments that add up quickly, but learning to live on less will ensure that there is money left over for an emergency fund, savings account, or can go towards paying off debt. Any increases in income should be planned out and utilized thoughtfully. For example, extra income can be turned into a higher percentage of your check going to your 401(k).
Plan on Doing What You Love
When you are free of debt, have a comfortable emergency fund, and have a good start on your savings, you will find yourself in a position where you are able to do what you love. Having more financial freedom means you have more freedom to choose what to do.
Being in a position to take care of your children or grandchildren is an honorable goal. Not wanting them to take over your debt means making a plan now. Plan on estate taxes and life insurance as well as having a will set up. All of the work that has been done towards setting up for a financial future is also making sure that the money saved has somewhere to go.
The financial consultants at Aureus Wealth Management are here to help you sort through your financial goals and help you prepare for living and saving for retirement. There is a lot of work to do along the way, but sound goals that are achievable will make it an easier journey. Talk with a financial advisor today about your goals and how to manage your finances.