Simplify your financial planning process with these easy steps.
1. Set goals — Define your personal and financial goals, so you can create a plan to reach them. Long-term goals can include your child’s education or retirement, while short term goals can include buying a home or taking a family vacation.
2. Know where you stand — Take stock of your financial situation by calculating your net worth and net cash flow. Then estimate how much you need to save to reach each of your goals. (A financial adviser can help you.)
3. Take action — Take charge of your finances by:
• Creating a budget. With a well thought-out budget, you can stay on track to reach your goals.
• Managing your debt. Too much debt can set you up for a difficult financial future. Systematically pay off your debt and learn to live within your means.
• Investing for your future. Make smart investment choices to reach your short and long-term goals.
• Protecting yourself and your loved ones with insurance. Life, health and disability income insurance are three insurance policies to consider.
Now’s the time to start planning your financial future! The sooner you get your finances in order and start saving for your goals, the easier it will be to reach them. Contact a financial adviser for help.
n Jamont McRae is Managing Partner with Modern Woodmen of America.