Financial Health 101: Planning for financial wellness

Finance Health 101

Financial health is a marathon, not a sprint. This adage is especially true when it comes to planning for your future financial wellbeing. We’ve gone over how to better manage your spending, savings, and debt so now it’s time to bring all that hard work together and begin planning for the future. It can be easy to get caught up in the everyday grind of life and forget to make the right moves to set up your future-self for success. But with a few smart decisions (the earlier the better!) you can ensure that all your hard work will pay off when you’re ready to sail off into the sunset.

 

Plan for financial success

Again with the planning?? We know, it’s a drum we continue to beat but it’s because it works! Knowing where you want to be when you retire will help you better determine what you need to do now to get there. Want to retire at 65 and travel abroad to yoga retreats twice a year? First of all, that sounds awesome, and secondly knowing that will help determine how much you should be saving (and how) currently in order to get there. Maybe your goals are more short-term like buying a house or setting up a college fund for your kids. Either way, tangible goals that help inspire you will go a long way towards making the work you do now more manageable as you move forward.

 

Take advantage of employee perks

Don’t get us wrong, discounts on gym memberships and free lunches are awesome but the employee perks that can really pay off are when it comes to retirement accounts. Most employers today offer their employees options for creating and maintaining retirement accounts. Often they come in the form of a 401K or an IRA account. While there are differences between the two the main benefit is the same which is that they allow you to save money for the future without having to pay taxes on it! There’s a limit to how much you’re allowed to contribute each year which is why it’s also a good idea to figure out if your company offers contribution matching. Some employers will match your contributions (again, up to a certain amount) throughout the year. It’s an incredible way to max out your retirement savings each year and get you even closer to whatever goals you have laid out for yourself.

 

Invest in your financial wellness

Maybe you’re one of the lucky few who was able to ride the DogeCoin rocket all the way to the moon… but for the rest of us a sound investment strategy with manageable risk makes a bit more sense. Investing in stocks, bonds, real estate, and cryptocurrencies is inherently risky which is why proper planning is a great place to start in order to properly develop an investment gameplan. Depending on how comfortable you are with risk, finding a broker is a great place to start if you decide you want to get into the investment game. Online brokerage firms are a great option as well if you’re looking to dip your toe into the market and prefer a more DIY method. Regardless of what you choose to do.

 

Insure your security

Things happen. Life is a sport and there will always be some bumps and bruises along the way. Normally, we’re able to hop back up and dust ourselves off but sometimes the financial ramifications of those speed bumps can be debilitating. An unforeseen medical bill, a large car repair, or property damage from a natural disaster are all fairly rare occurrences that can have severe financial impact if you aren’t properly protected. Insurance and financial safety nets are a great way to pad yourself from the risks of life and can be a relatively low-cost way to avoid high-cost outcomes. Thanks to a host of insurance providers out there today, shopping around for a great rate has become much easier and often you’re able to customize policies to fit your unique lifestyle. 

 

Planning for the future might not be the most exciting thing to do on a school night but it’s the best way to ensure you can live the life you’re working towards building. Creating specific and tangible goals will help influence the game plan you decide to put into play. Getting advice from a financial advisor can be helpful but no one will ever truly know your financial situation better than you do. So set a date to go over all the things that are important to you and start making all your hard work today payoff for tomorrow!

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