Financial planning advice is often directed at those early in their careers or those who have retired. But what about the rest of us? Those of us in our working years who are approaching retirement need help too. Here are five ways for everyone to implement healthy financial habits.
Keep a budget. Track your income and expenses, both when you are working and when you are retired. Knowing what you earn and what you spend is the key to financial freedom.
Manage your spending. This may be the most important tip and the hardest to do, even if you have a budget. But small steps can go a long way. Don’t keep a lot of cash in your wallet. Avoid buying on impulse; make a shopping list and stick to it.
Save part of your income every month. Save, save, save. In your working years, save for retirement. In your retirement, save for a rainy day.
Take advantage of all tax-savings plans that are available to you. If you have an employer-sponsored 401(k) plan, use it. If you can contribute to an IRA, do it. Even a pre-tax transportation plan or a health savings account saves some money, and every little bit of tax savings helps you achieve your goals.
Be conscientious. This one is about mindfulness. Open bills when you get them. Review your bank statements for mistakes. Pay your bills when they are due. Plan your dinner menus in advance. Read all contracts before signing.
Can I help you save for the future? Feel free to reach out.